Richard Moore added quite a few new positions to his Market Comparables model this week. In the model, Moore uses financial models that have been greatly refined to screen companies by their price movement and valuations. He then looks into the individual company financials and looks for hidden value within the companies.
The first position he added is ProShares Short QQQ ETF (PSQ). This ETF attempts to mirror the inverse of the NASDAQ 100 index. As of the date of this post, most of the fund’s holdings are in Nasdaq 100 Swaps and the fund is trading at a small discount to NAV.
Moore also added ProShares Short S&P 500 ETF (SH), another bearish fund. SH seeks to mirror the inverse of the performance of the S&P 500 index. This position can be used as a hedge against a declining market. As of September 9th, 2010, the majority of the fund’s assets were invested in S&P500 Swaps and the fund was trading at a premium to NAV.
Finally, Moore brought Innophos Holdings Inc (NASDAQ: IPHS) into his Market Comparables model. IPHS is a producer of chemical grade phosphates which can be turned into food grade aluminum sulfate, a thickening agent. On July 6th, 2010, IPHS closed at $24.22, a 5-month low point. This month the stock went as high as $31.51 (its closing price on September 3rd), a price it hasn’t seen since 2008. This rise in price is possibly the result of the August 30th upgrade to the company’s corporate family rating.
