Large Share Buybacks Again Prove They Are Misguided

May 27th, 2011 by hackel Leave a reply »

 

Large Share Buybacks Again Prove They Are Misguided

 

As if we needed additional evidence large share buybacks are almost always a waste of corporate resources , I present a list of all companies having current market values of greater than $500MM that have repurchased at least 15% of their current market values and placed into treasury. As seen, the list includes many well known firms, including several that have bought back over 50% of their current market values. The average of these large firms have repurchased an astounding 36% of their current market value – yet, as opposed to their helping their shareholders-they have done the opposite-as their stocks have underperformed the return on the S&P 500!

As seen, stock buybacks have proved no refuge in a flat and falling equity market. The latest example is the current year, as the current quarter to date, with the S&P slipping 36 basis points thru last night’s close, the average of these firms has seen its stock fall by 52 basis points. Care for a longer time horizon?

For the past 5 years, the names on the list have returned 2.4% versus a return on the S&P 500 of 3.77%. To make matters worse, the list excludes those bankrupt or merged firms which repurchased large amounts of their own shares prior to their demise such as Bear Stearns, Lehman, and many, many others.

For the current quarter, Big Lots, Brunswick, Ferro,, Lamar Advertising, , Lenox Int’l, , Lexmark, Terex, Timberland have each fallen by greater than 20% this quarter.

I am not implying these firms will meet the same fate as Lehman, but rather time has proven again and again share repurchases, other than to perhaps offset stock based compensation, do not improve the lots of shareholders or bondholders. And for sound economic reason.

Share buybacks, like dividends must be rubber-stamped by Boards of Directors. They should understand that share repurchases, despite improving GAAP-based metrics do nothing to improve cash based return on invested capital.  On the contrary, by altering the financial structure, it often raises risk and hence, the cost of capital to the firm whose value they are entrusted to enhance. Value is created by adding to the capital base, joint ventures, increasing revenues, and by running the firm more efficiently-not by shrinking the equity cushion.

One lot whose fortunes share buybacks does improve are high paid executives whose bonuses and stock options are often based on GAAP accounting.

Warren Buffet recognizes this, and has never bought back a share of Berkshire. Adding to the capital base assets whose cash based return is safely and consistently above ROIC is a proven method for share outperformance over the long-term.

While part of the problem lies with shareholders themselves, as they continue to believe share buybacks “support the stock”, history has again clearly shown otherwise.

For a detailed example on why share buybacks do not increase ROIC, please contact CT Capital LLC and see “Security Valuation and Risk Analysis.”

 

Company Name Ticker Symbol Treasury Stock ($M) Current Market Value ($M) % of Current Market Value in Treasury Total Return-Year to Date Total Return-Qtr to Date 5-Year Total Return
3M CO MMM 10,266 65,721 15.6% 8.4 (0.5) 5.4
ACI WORLDWIDE INC ACIW 172 1,031 16.6% 14.8 (5.9) (3.7)
ACTIVISION BLIZZARD INC ATVI 2,194 13,124 16.7% (6.4) 4.6  
ADOBE SYSTEMS INC ADBE 3,264 17,369 18.8% 11.9 3.8 (3.1)
ADVANCE AUTO PARTS INC AAP 1,029 4,904 21.0% (4.7) (4.0) 10.9
AFLAC INC AFL 5,386 22,833 23.6% (12.5) (7.0) 5.6
AGILENT TECHNOLOGIES INC A 8,038 16,945 47.4% 18.5 9.6 6.7
ALCATEL-LUCENT -ADR ALU 2,078 13,029 15.9% 89.9 (3.3) (14.1)
ALCOA INC AA 4,146 16,964 24.4% 4.2 (9.4) (10.9)
ALLIANCE DATA SYSTEMS CORP ADS 2,080 4,529 45.9% 25.0 3.4 11.6
ALLSTATE CORP ALL 15,910 16,409 97.0% (0.8) (1.1) (7.0)
ALTRIA GROUP INC MO 23,469 58,301 40.3% 14.8 7.0 16.7
AMDOCS LTD DOX 1,309 5,570 23.5% 9.2 4.0 (3.7)
AMERCO UHAL 526 1,694 31.0% (10.0) (10.9) (0.5)
AMERICAN TOWER CORP AMT 3,382 21,081 16.0% 2.9 2.6 8.9
AMERIPRISE FINANCIAL INC AMP 2,620 14,782 17.7% 6.7 0.3 6.6
AMERISOURCEBERGEN CORP ABC 4,373 11,328 38.6% 21.9 4.8 15.1
AMERN EAGLE OUTFITTERS INC AEO 938 2,635 35.6% (6.9) (14.9) (3.5)
AMR CORP/DE AMR 367 2,184 16.8% (15.9) 1.4 (24.9)
AMTRUST FINANCIAL SERVICES AFSI 300 1,259 23.9% 21.1 10.7  
ANN INC ANN 864 1,472 58.7% 3.7 (2.4) (3.5)
APOLLO GROUP INC  -CL A APOL 2,408 5,649 42.6% 1.4 (4.0) (6.0)
APPLIED MATERIALS INC AMAT 9,396 18,195 51.6% (1.4) (11.7) (1.0)
ASSURANT INC AIZ 1,764 3,620 48.7% (1.8) (2.1) (2.4)
ASTORIA FINANCIAL CORP AF 1,431 1,391 102.8% 3.4 (0.8) (10.5)
AUTOMATIC DATA PROCESSING ADP 6,540 26,694 24.5% 16.2 4.1 9.4
AVERY DENNISON CORP AVY 831 4,380 19.0% (2.6) (2.3) (4.8)
AVIS BUDGET GROUP INC CAR 5,874 1,765 332.8% 8.0 (6.1) (3.4)
AVON PRODUCTS AVP 4,559 12,785 35.7% 3.9 10.7 0.6
AXIS CAPITAL HOLDINGS LTD AXS 1,381 4,207 32.8% (8.8) (6.9) 6.0
BALL CORP BLL 2,123 6,492 32.7% 13.8 7.8 14.3
BANK OF HAWAII CORP BOH 450 2,263 19.9% 1.5 (0.8) 1.6
BAXTER INTERNATIONAL INC BAX 5,655 33,681 16.8% 17.3 9.8 10.6
BECTON DICKINSON & CO BDX 4,806 19,134 25.1% 4.0 9.9 8.2
BED BATH & BEYOND INC BBBY 2,814 13,426 21.0% 9.2 11.2 7.9
BEMIS CO INC BMS 544 3,448 15.8% 1.7 0.5 3.0
BERKLEY (W R) CORP WRB 1,750 4,616 37.9% 19.3 1.2 (1.9)
BIG LOTS INC BIG 1,079 2,534 42.6% 10.6 (22.4) 23.3
BJ’S WHOLESALE CLUB INC BJ 636 2,725 23.3% 6.0 4.0 10.9
BLOCK H & R INC HRB 2,057 4,963 41.4% 37.9 (2.9) (2.5)
BMC SOFTWARE INC BMC 2,294 9,580 23.9% 14.9 8.9 18.5
BOEING CO BA 17,187 56,316 30.5% 18.2 3.7 1.6
BP PLC  -ADR BP 21,085 137,666 15.3% 1.6 0.7 (4.6)
BRIGGS & STRATTON BGG 202 1,022 19.8% 3.5 (10.6) (3.5)
BRINKER INTL INC EAT 1,678 2,187 76.7% 24.2 1.9 0.7
BRISTOL-MYERS SQUIBB CO BMY 17,454 48,109 36.3% 9.2 6.7 7.3
BRUNSWICK CORP BC 406 1,802 22.5% 8.0 (20.4) (8.5)
CA INC CA 2,095 11,529 18.2% (6.4) (5.6) 0.1
CAMPBELL SOUP CO CPB 7,459 11,192 66.6% 1.4 6.5 3.7
CAPITOL FEDERAL FINL INC CFFN 330 1,966 16.8% 4.9 4.9 1.7
CARPENTER TECHNOLOGY CORP CRS 535 2,201 24.3% 25.2 17.5 (1.0)
CATERPILLAR INC CAT 10,397 65,688 15.8% 9.7 (8.1) 11.7
CBS CORP CBS 3,689 17,868 20.6% 41.2 6.7 3.3
CBS CORP CBS 3,689 17,868 20.6% 40.5 6.7 3.3
CHARLES RIVER LABS INTL INC CRL 769 1,968 39.1% 7.2 (0.7) (2.2)
CHEESECAKE FACTORY INC CAKE 558 1,789 31.2% 1.0 3.0 (1.4)
CHEMED CORP CHE 409 1,420 28.8% 5.3 0.2 5.7
CHOICE HOTELS INTL INC CHH 872 2,104 41.5% (7.6) (9.4) (5.0)
CHUBB CORP CB 3,783 18,957 20.0% 9.4 5.7 7.5
CIGNA CORP CI 5,242 13,120 40.0% 32.4 9.5 5.7
CINCINNATI FINANCIAL CORP CINF 1,201 4,921 24.4% (3.6) (7.9) (1.2)
CINTAS CORP CTAS 799 4,602 17.4% 13.3 4.6 (4.2)
CITRIX SYSTEMS INC CTXS 2,417 15,434 15.7% 20.0 11.8 16.1
COCA-COLA CO KO 27,762 154,502 18.0% 3.4 1.7 13.2
COLGATE-PALMOLIVE CO CL 11,305 42,079 26.9% 8.6 7.3 9.9
COMERICA INC CMA 1,565 6,328 24.7% (15.0) (2.5) (4.4)
COMMERCIAL METALS CMC 290 1,689 17.2% (11.2) (15.3) (7.0)
CON-WAY INC CNW 341 2,094 16.3% 3.9 (3.6) (5.9)
CONAGRA FOODS INC CAG 2,945 10,374 28.4% 14.6 7.8 5.2
CONOCOPHILLIPS COP 20,710 100,825 20.5% 6.6 (9.9) 6.6
CONSTELLATION BRANDS  -CL A STZ 904 4,642 19.5% (1.9) 7.4 (1.9)
CONSTELLATION BRANDS  -CL A STZ 904 4,642 19.5% (1.6) 7.5 (1.9)
CONVERGYS CORP CVG 1,060 1,571 67.5% (1.7) (9.8) (5.7)
COOPER TIRE & RUBBER CO CTB 468 1,461 32.0% 0.2 (8.7) 20.4
CORPORATE EXECUTIVE BRD CO EXBD 629 1,413 44.5% 9.5 1.4 (15.5)
COVANCE INC CVD 734 3,526 20.8% 13.1 6.2 1.4
COVENTRY HEALTH CARE INC CVH 1,268 5,007 25.3% 28.0 6.0 (8.3)
CVS CAREMARK CORP CVS 9,086 51,485 17.6% 10.0 11.0 4.9
CYMER INC CYMI 493 1,428 34.5% 3.8 (17.3) (1.4)
CYPRESS SEMICONDUCTOR CORP CY 1,203 3,599 33.4% 15.3 10.5 38.7
DARDEN RESTAURANTS INC DRI 2,944 7,022 41.9% 12.3 5.5 5.9
DAVITA INC DVA 1,361 8,069 16.9% 21.6 (1.2) 9.4
DEERE & CO DE 5,790 34,972 16.6% 0.4 (14.3) 19.6
DELL INC DELL 28,704 29,536 97.2% 14.3 6.8 (10.0)
DIEBOLD INC DBD 436 2,089 20.9% 1.5 (9.0) (1.5)
DIGITAL RIVER INC DRIV 255 1,208 21.1% (11.5) (18.6) (5.7)
DILLARDS INC  -CL A DDS 1,356 2,759 49.1% 39.7 32.0 14.2
DISH NETWORK CORP DISH 1,569 6,070 25.9% 49.6 20.8 2.1
DISNEY (WALT) CO DIS 23,663 77,799 30.4% 9.7 (4.5) 10.6
DONNELLEY (R R) & SONS CO RRD 1,166 4,256 27.4% 20.7 9.9 (6.2)
DOVER CORP DOV 2,322 11,708 19.8% 7.8 (4.5) 8.8
DREAMWORKS ANIMATION INC DWA 688 1,798 38.3% (16.0) (11.4) (0.5)
DST SYSTEMS INC DST 2,815 2,176 129.4% 6.4 (11.3) (3.9)
DUN & BRADSTREET CORP DNB 2,214 3,965 55.8% (1.8) 0.0 2.6
EASTMAN CHEMICAL CO EMN 1,615 7,105 22.7% 19.5 0.7 18.3
ECOLAB INC ECL 2,521 12,219 20.6% 4.8 3.2 8.2
EL PASO ELECTRIC CO EE 338 1,269 26.6% 9.4 (0.9) 9.4
EMERSON ELECTRIC CO EMR 6,320 40,515 15.6% (4.6) (7.2) 10.4
ENERGIZER HOLDINGS INC ENR 1,668 5,314 31.4% 4.6 7.2 8.1
ENSTAR GROUP LTD ESGR 422 1,351 31.2% 16.6 (1.3)  
ENTERGY CORP ETR 5,525 12,013 46.0% (2.5) 1.6 3.4
EQUIFAX INC EFX 2,032 4,559 44.6% 5.0 (4.2) 0.1
ERIE INDEMNITY CO  -CL A ERIE 872 3,514 24.8% 10.3 0.8 11.4
EVEREST RE GROUP LTD RE 981 4,803 20.4% 4.9 0.3 2.1
EXPEDIA INC EXPE 2,241 6,826 32.8% 10.2 21.6 6.4
EXTERRAN HOLDINGS INC EXH 204 1,273 16.0% (16.9) (16.1) (18.9)
EXXON MOBIL CORP XOM 156,608 397,387 39.4% 11.6 (3.6) 9.2
FAIR ISAAC CORP FICO 1,556 1,145 135.9% 23.2 (9.0) (3.9)
FEDERATED INVESTORS INC FII 779 2,655 29.3% (1.2) (4.2) (0.2)
FERRO CORP FOE 164 1,021 16.1% (18.9) (28.5) (2.9)
FIDELITY NATIONAL INFO SVCS FIS 2,359 9,629 24.5% 15.2 (3.7) 11.1
FISERV INC FISV 2,340 8,980 26.1% 6.8 (0.3) 6.3
FOREST LABORATORIES  -CL A FRX 3,783 9,967 38.0% 8.9 7.9 (3.9)
FORTUNE BRANDS INC FO 3,215 9,680 33.2% 4.9 1.8 (1.8)
GANNETT CO GCI 5,300 3,417 155.1% (5.6) (6.7) (19.7)
GAP INC GPS 10,866 11,234 96.7% (12.1) (14.5) 7.2
GARTNER INC IT 1,045 3,627 28.8% 12.3 (10.5) 25.1
GATX CORP GMT 560 1,778 31.5% 9.5 (0.9) 1.1
GENERAL DYNAMICS CORP GD 4,535 26,557 17.1% 1.8 (6.2) 4.2
GENERAL ELECTRIC CO GE 31,938 205,893 15.5% 6.7 (3.3) (6.4)
GENWORTH FINANCIAL INC GNW 2,700 5,372 50.3% (16.7) (18.6) (17.3)
GOLDMAN SACHS GROUP INC GS 36,295 70,329 51.6% (19.0) (14.4) (0.3)
GRAINGER (W W) INC GWW 2,857 10,314 27.7% 8.7 8.6 16.7
GREENHILL & CO INC GHL 331 1,624 20.4% (32.6) (16.8) (1.5)
HANOVER INSURANCE GROUP INC THG 720 1,880 38.3% (10.9) (8.6) (3.0)
HARLEY-DAVIDSON INC HOG 4,674 8,591 54.4% 5.1 (14.4) (3.8)
HARMAN INTERNATIONAL INDS HAR 1,048 3,252 32.2% 0.6 (0.6) (11.1)
HARSCO CORP HSC 737 2,595 28.4% 15.0 (8.3) (0.9)
HASBRO INC HAS 2,102 6,459 32.5% 1.7 1.9 21.8
HEALTH NET INC HNT 1,627 2,825 57.6% 14.4 (4.5) (3.9)
HEINZ (H J) CO HNZ 4,751 17,169 27.7% 8.9 9.3 8.2
HERSHEY CO HSY 4,052 9,091 44.6% 18.5 2.1 4.4
HIBBETT SPORTS INC HIBB 205 1,083 18.9% 7.1 10.3 4.5
HILL-ROM HOLDINGS INC HRC 558 2,856 19.5% 15.2 19.0 12.5
HOLLY CORP HOC 678 3,229 21.0% 49.0 (0.3) 10.3
HONEYWELL INTERNATIONAL INC HON 8,299 46,024 18.0% 11.3 (1.5) 10.4
HUDSON CITY BANCORP INC HCBK 1,726 4,761 36.2% (27.5) (5.8) (3.3)
HUNT (JB) TRANSPRT SVCS INC JBHT 1,173 5,443 21.6% 11.6 (0.1) 16.4
IAC/INTERACTIVECORP IACI 8,364 3,007 278.2% 22.8 14.0 5.5
IDEXX LABS INC IDXX 1,061 4,473 23.7% 12.7 1.0 14.4
INTEGRA LIFESCIENCES HLDGS IART 284 1,422 19.9% 5.3 5.0 4.5
INTERDIGITAL INC IDCC 569 1,904 29.9% 1.2 (11.8) 12.9
INTL BANCSHARES CORP IBOC 250 1,108 22.6% (17.4) (10.8) (5.3)
INTL BUSINESS MACHINES CORP IBM 96,161 203,797 47.2% 15.6 3.6 17.7
INTL FLAVORS & FRAGRANCES IFF 1,383 5,043 27.4% 13.4 0.7 15.0
INTUIT INC INTU 3,315 16,016 20.7% 7.4 (0.3) 15.5
ITT EDUCATIONAL SERVICES INC ESI 566 1,879 30.1% 5.1 (7.2) 2.5
JACK IN THE BOX INC JACK 571 1,082 52.8% 0.9 (6.0) (0.2)
KEYCORP KEY 1,904 7,863 24.2% (6.5) (6.9) (23.4)
KIMBERLY-CLARK CORP KMB 4,726 26,692 17.7% 8.9 4.1 6.4
KNIGHT CAPITAL GROUP INC KCG 766 1,222 62.7% (11.7) (9.1) (3.9)
KOHL’S CORP KSS 3,643 15,967 22.8% 1.7 3.7 (1.1)
KROGER CO KR 6,732 14,907 45.2% 10.9 3.0 5.2
L-3 COMMUNICATIONS HLDGS INC LLL 2,658 8,783 30.3% 18.7 6.3 1.2
LAM RESEARCH CORP LRCX 1,581 5,760 27.5% (10.6) (18.3) (0.2)
LAMAR ADVERTISING CO  -CL A LAMR 885 2,258 39.2% (27.1) (21.3) (9.1)
LANCASTER COLONY CORP LANC 680 1,667 40.8% 6.8 0.3 11.1
LANDSTAR SYSTEM INC LSTR 763 2,196 34.8% 12.3 0.5 2.6
LAUDER (ESTEE) COS INC -CL A EL 2,850 11,831 24.1% 21.8 2.0 22.8
LAWSON SOFTWARE INC LWSN 327 1,823 17.9% 19.9 (8.3) 7.6
LEGGETT & PLATT INC LEG 1,093 3,641 30.0% 13.3 4.0 4.7
LENNAR CORP LEN 615 3,228 19.1% (7.2) (1.8) (17.5)
LENNOX INTERNATIONAL INC LII 947 2,456 38.6% (2.3) (12.4) 10.0
LEXMARK INTL INC  -CL A LXK 404 2,303 17.6% (16.5) (21.5) (7.9)
LOUISIANA-PACIFIC CORP LPX 280 1,045 26.8% (16.4) (24.7) (18.3)
MACY’S INC M 2,431 12,170 20.0% 13.2 17.8 (7.7)
MAGELLAN HEALTH SERVICES INC MGLN 382 1,643 23.2% 8.7 4.7 5.1
MANPOWERGROUP MAN 1,258 4,942 25.4% (4.2) (4.4) 1.6
MARRIOTT INTL INC MAR 5,348 13,045 41.0% (12.2) 2.3 0.3
MATTEL INC MAT 1,881 9,149 20.6% 5.4 6.5 14.9
MATTHEWS INTL CORP  -CL A MATW 207 1,082 19.2% 5.2 (4.7) 3.6
MAXIMUS INC MMS 359 1,406 25.6% 24.0 0.0 19.4
MBIA INC MBI 2,225 1,756 126.7% (26.7) (12.5) (28.9)
MCDONALD’S CORP MCD 25,143 85,600 29.4% 8.4 8.4 21.4
MCGRAW-HILL COMPANIES MHP 4,958 12,901 38.4% 17.1 7.5 (3.9)
MCKESSON CORP MCK 6,470 21,221 30.5% 19.9 6.5 12.2
MEDCO HEALTH SOLUTIONS INC MHS 11,066 25,451 43.5% 3.9 13.4 17.4
MEDICIS PHARMACEUT CP  -CL A MRX 348 2,266 15.3% 37.3 14.5 2.3
MEMC ELECTRONIC MATRIALS INC WFR 456 2,343 19.5% (9.7) (21.5) (21.9)
MENS WEARHOUSE INC MW 413 1,706 24.2% 33.2 22.5 (3.5)
MERCK & CO MRK 22,433 113,895 19.7% 3.6 11.8 5.1
METTLER-TOLEDO INTL INC MTD 1,057 5,298 20.0% 9.0 (4.2) 23.7
MICROSTRATEGY INC MSTR 475 1,085 43.8% 58.4 0.7 8.6
MINE SAFETY APPLIANCES CO MSA 271 1,310 20.7% 16.6 (1.8) 1.9
MINERALS TECHNOLOGIES INC MTX 466 1,172 39.8% (1.8) (6.4) 3.9
MOLEX INC MOLX 1,098 4,338 25.3% 18.1 6.1 (3.9)
MOLEX INC MOLX 1,098 4,338 25.3% 18.9 7.5 (3.9)
MOODY’S CORP MCO 4,407 8,634 51.0% 43.9 12.2 (7.7)
NASDAQ OMX GROUP INC NDAQ 796 4,406 18.1% 5.1 (3.5) (6.2)
NRG ENERGY INC NRG 1,503 5,955 25.2% 26.4 14.7 0.3
NU SKIN ENTERPRISES  -CL A NUS 477 2,272 21.0% 22.6 28.5 17.1
NVR INC NVR 3,240 4,303 75.3% 5.8 (3.3) (0.4)
OMNICOM GROUP OMC 4,697 13,140 35.7% 2.6 (4.7) 3.4
PARTNERRE LTD PRE 1,083 5,141 21.1% (3.9) (3.2) 7.9
PETSMART INC PETM 1,335 5,094 26.2% 13.5 10.1 9.8
PITNEY BOWES INC PBI 4,480 4,958 90.4% 3.6 (3.9) (5.6)
POLYONE CORP POL 306 1,304 23.4% 12.1 (1.8) 10.3
PPG INDUSTRIES INC PPG 4,708 13,705 34.4% 4.4 (8.4) 10.9
PRINCIPAL FINANCIAL GRP INC PFG 4,725 10,022 47.1% (4.2) (2.9) (6.2)
PROCTER & GAMBLE CO PG 61,309 187,156 32.8% 5.9 9.7 4.9
PRUDENTIAL FINANCIAL INC PRU 11,173 30,322 36.8% 6.3 1.3 (2.4)
QUAD/GRAPHICS INC QUAD 296 1,343 22.0% (0.6) (3.6)  
QUEST DIAGNOSTICS INC DGX 2,158 9,085 23.8% 7.4 0.2 1.0
RADIOSHACK CORP RSH 949 1,643 57.8% (16.2) 3.2 0.1
RAYTHEON CO RTN 6,900 17,599 39.2% 8.4 (2.0) 4.3
REGIONS FINANCIAL CORP RF 1,402 8,582 16.3% (2.3) (5.9) (24.6)
RENT-A-CENTER INC RCII 904 1,991 45.4% (2.7) (10.2) 2.2
RLI CORP RLI 393 1,261 31.1% 14.5 3.9 5.5
ROCKWELL AUTOMATION ROK 2,136 11,748 18.2% 14.5 (13.6) 6.2
ROCKWELL COLLINS INC COL 1,497 9,309 16.1% 4.5 (6.4) 3.6
SAFEWAY INC SWY 6,284 8,821 71.2% 11.4 5.8 0.8
SCHWAB (CHARLES) CORP SCHW 4,247 20,744 20.5% 1.1 (4.3) 2.7
SEACOR HOLDINGS INC CKH 903 2,081 43.4% (4.9) 3.9 5.1
SEARS HOLDINGS CORP SHLD 5,826 7,737 75.3% (2.6) (13.1) (9.8)
SHERWIN-WILLIAMS CO SHW 4,391 9,084 48.3% 2.8 2.0 12.5
SIGMA-ALDRICH CORP SIAL 2,051 8,314 24.7% 2.8 7.3 16.8
SLM CORP SLM 1,876 8,433 22.3% 27.0 4.5 (20.4)
SPX CORP SPW 2,516 4,020 62.6% 10.6 (0.7) 11.3
ST JOE CO JOE 931 2,038 45.7% 1.1 (11.9) (13.8)
STAPLES INC SPLS 3,787 11,917 31.8% (26.2) (14.0) (3.1)
STEEL DYNAMICS INC STLD 728 3,625 20.1% (8.8) (11.6) 5.1
SUNOCO INC SUN 4,387 4,753 92.3% (1.9) (13.6) (10.0)
SUPERVALU INC SVU 521 2,155 24.2% 6.6 13.8 (14.7)
SYNAPTICS INC SYNA 282 972 29.0% (3.4) 5.0 10.2
SYSCO CORP SYY 4,408 18,858 23.4% 11.9 16.7 2.5
TECH DATA CORP TECD 467 2,188 21.3% 6.7 (7.6) 7.7
TECHNICOLOR  -ADR TCLRY 207 1,172 17.7% 40.8 (7.7) (45.5)
TELEPHONE & DATA SYSTEMS INC TDS 739 2,943 25.1% (12.1) (5.0) (2.0)
TELEPHONE & DATA SYSTEMS INC TDS 739 2,943 25.1% (10.8) (5.1) (2.0)
TELETECH HOLDINGS INC TTEC 323 1,009 32.0% (13.6) (8.2) 9.1
TELLABS INC TLAB 1,222 1,664 73.4% (31.9) (12.2) (20.7)
TEMPLE-INLAND INC TIN 584 2,419 24.1% 5.7 (4.6) 4.3
TEMPUR PEDIC INTL INC TPX 713 4,291 16.6% 56.5 23.7 32.6
TENET HEALTHCARE CORP THC 1,479 3,074 48.1% (6.1) (15.7) (3.6)
TEREX CORP TEX 599 3,094 19.4% (9.1) (23.8) (4.3)
TEXAS INSTRUMENTS INC TXN 16,411 39,770 41.3% 6.2 (0.5) 2.0
TIMBERLAND CO  -CL A TBL 747 1,313 56.9% 29.6 (22.8) 5.8
TIME WARNER INC TWX 29,033 38,710 75.0% 13.1 1.3 2.8
TRAVELERS COS INC TRV 14,857 25,735 57.7% 11.0 3.3 10.2
UMB FINANCIAL CORP UMBF 361 1,696 21.3% 1.5 12.0 6.1
UNITED STATIONERS INC USTR 773 1,625 47.5% 11.2 (0.5) 6.2
UNITED TECHNOLOGIES CORP UTX 17,468 78,795 22.2% 10.5 2.3 9.7
VALASSIS COMMUNICATIONS INC VCI 508 1,380 36.8% (13.2) (3.6) (0.3)
VALERO ENERGY CORP VLO 6,462 14,787 43.7% 12.6 (12.9) (14.0)
VARIAN SEMICONDUCTOR EQUIPMT VSEA 733 4,615 15.9% 65.5 25.7 13.9
VERISK ANALYTICS INC VRSK 1,106 5,179 21.4% (0.4) 3.6  
VIACOM INC VIA.B 5,725 29,895 19.2% 30.3 11.8 5.5
VIACOM INC VIA.B 5,725 29,895 19.2% 26.6 7.5 5.5
WASHINGTON POST  -CL B WPO 2,158 2,770 77.9% (4.9) (5.0) (9.2)
WASTE MANAGEMENT INC WM 4,904 18,224 26.9% 5.2 2.9 4.4
WATERS CORP WAT 2,509 8,913 28.2% 25.2 11.9 16.7
WEIGHT WATCHERS INTL INC WTW 1,794 6,140 29.2% 124.8 19.9 11.7
WESCO INTL INC WCC 591 2,259 26.2% (0.7) (16.1) (3.8)
WHIRLPOOL CORP WHR 1,823 6,139 29.7% (8.3) (5.1) 1.8
WOLVERINE WORLD WIDE WWW 377 1,890 19.9% 19.8 2.1 11.5
WYNDHAM WORLDWIDE CORP WYN 1,107 5,745 19.3% 13.4 6.3  
ZEBRA TECHNOLOGIES CP  -CL A ZBRA 462 2,275 20.3% 9.6 6.1 (0.2)
ZIMMER HOLDINGS INC ZMH 3,545 12,861 27.6% 24.8 10.7 0.7
               
AVERAGE   4,876 15,661 35.9% 7.8 (0.5) 2.4

 

Kenneth Hackel, CFA

 

 

 

 

 

 

 

 

 

 

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