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Sep 08 2021

Rolling In Cash & Spending It In Style

  • Sep 8, 2021

We take a look at how the market rewards different uses for cash and what drives management decisions about the use of cash over time. The focus here is on the three main cash applications: investment (Capex and R&D), return of cash (via buybacks and dividends), and M&A spending.

Dec 06 2019

Capex Beneficiaries “Delivered,” But Only On Price Action

  • Dec 6, 2019

With optimistic views on capex in late 2017, we built a thematic group of companies that appeared to be potential beneficiaries of higher spending going forward. This group has outperformed the market; but, the capex trend is disappointing and quite concerning.

Sep 08 2017

Commodities: How Strong Is Too Strong?

  • Sep 8, 2017

While the bond market doesn’t believe it, the past couple of months leave no doubt that the U.S. industrial economy has recovered from the energy-related slump of 2015-2016.

Apr 06 2017

Stock Picking In A Season Of Animal Spirits

  • Apr 6, 2017

We examine past capex spending patterns and identify industries with sales growth rates that have historically been the most responsive to capex cycles.

Dec 07 2016

Does Returning Cash Crowd Out Capex?

  • Dec 7, 2016

Companies are returning cash to investors at a level never before seen. Does the historically high level of cash being returned to shareholders crowd out the use of cash elsewhere? One wide-spread concern is that by shelling out cash through dividends and share buybacks, companies are spending less on capital expenditures. Is that a real concern?

Jun 07 2016

Time For Materials?

  • Jun 7, 2016

The Leuthold Materials sector jumped five spots to #3 in the June Group Selection (GS) rankings, its highest ranking in eight years and the first reading outside of the bottom four in almost four years.

Feb 06 2015

Capex, Capacity And The Dollar

  • Feb 6, 2015

We’ve been highlighting the overinvestment (or malinvestment) risks in commodity-oriented equity sectors for the past three years, but we certainly did not foresee those risks exploding the way they have in the oil market over the last seven months.

Mar 07 2014

Technology’s Prospects For Long Term Leadership Looking Good

  • Mar 7, 2014

Nine Technology groups are in the top quintile of our group model, and the sector has strengthened on a relative basis after twice “testing” a trendline that dates back to the early 2000’s tech wreck. There’s reason to believe the new uptrend has longer-term legs.

Dec 05 2009

How Investors Are Rewarding Management Decisions: A Global Perspective

  • Dec 5, 2009

There are four key decisions a company’s management has to make: Dividend Policy, External Financing, Capital Expenditure (Capex), and Research & Development (R&D).  We studied how the market rewards each of these management decisions.

Jul 04 2007

Corporate Share Repurchases Now At Record Levels...Five Reasons Why They Are Expected To Slow

  • Jul 4, 2007

Share repurchases have been a major driver in the extension of the bull market, but this month’s “Of Special Interest” outlines several factors which are likely to contribute to a deceleration in corporate repurchase activity over the next several quarters.

Feb 05 2007

CAPEX Is Slowing: Which industries still stand to benefit—and which ones are in trouble?

  • Feb 5, 2007

We dig deeper into the capital spending data to determine which industries still could benefit from recent CAPEX trends and which ones are likely to get hurt.

Mar 05 2006

Capex Beneficiaries: Where Is The Big Spending….And Which Industries Stand To Gain?

  • Mar 5, 2006

Capex spending on the rise. Eric Bjorgen segments the spending areas and theorizes about which groups will be the most significant beneficiaries of spending. Great idea generator for those looking for ways to play the rising capex spending.

Feb 05 2006

Tech Watch Revisited – Examining The Bullish Case For Info Tech

  • Feb 5, 2006

Technology continues to be a hot topic. This month’s “Inside The Stock Market” takes an objective look at the Tech sector.

Feb 05 2006

Update On The Economy….Q4 Just A Bump In The Road...Or Something More?

  • Feb 5, 2006

Real GDP in Q4 was not too robust, but the numbers will likely be revised upward.

Aug 03 2005

The Latest On Capex...Growth Appears Likely To Continue

  • Aug 3, 2005

Real growth in capital spending remained at an above-median rate in Q2, and it now looks like it might hold at or near these levels if an inventory rebuilding scenario plays out during the rest of the year.

May 05 2004

Market Mood Swings

  • May 5, 2004

Bull market still intact, but investor appetite for risk remains subdued. April’s preference was for defensive and conservative strategies. Old axiom “Sell in May and go away” doesn’t seem to apply during the 130 days leading up to election day.

Nov 05 2003

Capex And Consumer Spending Back In Sync

  • Nov 5, 2003

Another confirmation of the strength of the recovery.

Sep 03 2003

Tech Watch

  • Sep 3, 2003

Still overweight Info Tech, but stock selection likely to get tougher in coming months.

Sep 04 2002

Tech Watch—Pockets of Strength Beginning to Emerge

  • Sep 4, 2002

Stock selection and small cap focus have provided the only hopes of surviving this decimated sector.