The Stingy News Weekly (03/22/02)
The Markets This Week
DOW 30: 10,427.67 -1.69% with a median P/E of 34.5
TSE 300: 7,857.13 -0.19% with a median P/E of 28.3
The Value View
Dow at a P/E of 20: 6,045 (-42.0%) Poor Value
Dow at a P/E of 15: 4,534 (-56.5%) Fair Value
Dow at a P/E of 10: 3,023 (-71.0%) Good Value
TSE 300 at a P/E of 20: 5,553 (-29.3%) Poor Value
TSE 300 at a P/E of 15: 4,165 (-47.0%) Fair Value
TSE 300 at a P/E of 10: 2,776 (-64.7%) Good Value
Buffetting corporate America
Bill Gross talks about the secret to Buffett's success and highlights GE's precarious position.
Rukeyser gets the boot
"Louis Rukeyser, the venerable financial commentator who has hosted public television's "Wall Street Week With Louis Rukeyser" for 32 years, said Thursday he has been forced from the program by his partner, Maryland Public Television."
Does Tyco play accounting games?
"Don't let the recent buoyancy of the stock market fool you. Most investors are still deep-in-their-gut afraid to dive back into the water. And the fears have little to do with the latest Fed report, inventory statistic, or other economic indicator. No, the big concern is the weather. Will another Enron-like storm be sweeping across the country? Are there torrents of financial funny business yet to be uncovered?"
MERs offer best guide to funds' future peformance
"Funds that ranked among cheapest in their category by MER generally had a good chance of outperforming over time frames of one, three and five years, the study found."
A record for corporate bankruptcies?
"Unemployment is down. New orders are up. And even Federal Reserve Chairman Alan Greenspan thinks an economic upturn is in the cards again. But not everything is coming up roses: Some experts are bracing for a record number of corporate bankruptcies in 2002."
Is housing the next bubble?
"In fact, housing didn't just hold its own during the slump. It zoomed. Activity has been so strong that sales of new and existing homes hit all-time records last year. Not exactly what you'd expect when around two million people were losing their jobs, is it? What's more, we've seen record growth in mortgage refinancing, and annual home-price increases between 6% and 8% nationally for three years in a row."
Fight and flight at Andersen
"When faced with mortal danger, people are biologically primed to respond in one of two ways: fight or flight. The same apparently holds true for accountants. Now that Arthur Andersen has been officially indicted on obstruction-of-justice charges, and big-name clients are defecting on a near-hourly basis, what are Andersen partners to do? Depends where they are on the food chain."
The trivia questions this week are:
Q1. What was the DOW's low from 1900 to 2002?
Q2. How long was the longest U.S. bear market of the last century?
Q3. When was the longest U.S. bear market of the last century?
The answers for last week's trivia questions are:
Q1. Who said "So there is only one way of escaping taxation and that is to make a fortune."?
A1. Pierre-Samuel du Pont de Nemours
Q2. In 1916 the U.S. tax rate on incomes over $300,000 was 7%. How much tax was paid?
A2. $81,404,194 with 1,296 returns filed.
Q3. In 1921 the U.S. tax rate on incomes over $300,000 was 77%. How much tax was paid?
A3. $84,797,344 with 246 returns filed.
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