Greetings!
Below please find the ETF Spotlight newsletter for
the week of June 21, containing highlights of the research and
data on www.etfresearchcenter.com
as well as a recap of the past week's action in the ETF market. The focus of this week's edition is cash flow. Feel free to share it with others who may be interested. |
In this week's issue
|
|
 Cash Flow
- Chart of the week: ETFs with fast growing cash flow
- Fund Focus: PowerShares WilderHill Clean Energy (PBW)
- Revisions, asset flows & short interest
- Cash flow per share estimates, growth rates and P/CF multiples for major ETFs
- Market monitor - movers & categories
To download the full newsletter click here. |
| Chart of the week
|
|
ETFs with fast-growing cash flow
Change in Cash Flow per share, 2010-11E
 |
Investors frustrated with reported earnings as a measure of a company's health often look to cash flow as an indicator that is harder to manipulate through changes in accounting policy, etc. Naturally, growth in cash flow can signal real improvements in a company's business. This week's chart shows ETFs with the fastest expected growth in cash flow per share based on estimates for 2010-11E. Thankfully, several bank-ETFs are on the list, as are some clean-energy funds. But of course growth in cash flow doesn't necessarily translate into a good investment. For example, we can't even calculate a meaningful ALTAR Score for the PowerShares WilderHill (the subject of this week's Fund Focus) because of the history of sustained losses by firms in the fund. To download the full newsletter, click here. |
|
Fund Focus |
|
PowerShares WilderHill Clean Energy (PBW)
Investors should treat this promising sector as speculative: although sales have grown rapidly, in aggregate firms in PBW have broken even just once, back in 2007, and many firms that do make money are also engaged in other businesses. That said, hope springs eternal and consensus estimates forecast profits this year and rapid growth next. Still, without a meaningful ALTAR Score and "nose bleed" P/E multiples the fund is hard to value, except perhaps on the basis of price-to-sales.
To download the full newsletter, click here.
|
