Daily Speculations

The Web Site of Victor Niederhoffer & Laurel Kenner

Dedicated to the scientific method, free markets, deflating ballyhoo, creating value, and laughter;  a forum for us to use our meager abilities to make the world of specinvestments a better place.



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Red to Black:

One just saw this headline from the well located Princeton firm of Stone and McCarthy. One thought this might be a promotion to buy their latest study of the performance of companies that just turned from earning a red deficit to the magic of a black profit in their last 12 months as most recently announced. Such companies would seem ripe for inordinate increases in a market such as this with the body snatchers still in the ascendancy, the 110 year old columnist still in the saddle, and a chronic bear still with $2 billion or so under management. But no, the study was merely about "states finally seem to be on solid fiscal ground without the help of tax increases. (an inevitable concomitant of that location). ." Let this change of venue, this unpleasant frustration at not seeing a study of CRSP or S&P companies with this attribute or red to blackness be rectified. -- Victor Niederhoffer
P.S. Let me apologize at same time, for not sharpening my reference to Odysseus with the land of the Lotus and appeals to his men to get away from Circe for their own good, and other sharp referents.

Here is a list of S&P 100 companies that recently turned from red to black. As to whether these will do better or worse, that will have to be tested both as to past and taking into consideration ever changing cycles...