Last week was extremely busy. Not only did we get a few hundred companies reporting their quarterly results and a smattering of global economic data, but it coincided with the annual Orlando MoneyShow. I was lucky enough to meet a number of PowerTrend Profits and ETF PowerTrader subscribers, as well as other investors. It always is nice to spend time with them talking about PowerTrends, the market and the economy, as well as answering any questions.
Aside from giving several presentations that involved using PowerTrends to identify winning investments, I had the pleasure of hosting a panel discussion that featured representatives of Proctor & Gamble (PG), American Water Works (AWK), Companhia Energetica Minas Gerais (CIG) and energy company Allete (ALE). During an hour-long conversation, a number of confirming data points emerged for PowerTrend investing.
P&G's representative shared that the company continues to see modest growth in the United States, but far stronger growth in the emerging markets, which are benefitting from rising disposable incomes. An official with Companhia Energetica Minas Gerais gave us a first-hand account of the improving economy in Brazil. We also received favorable economic data reports from HSBC and Markit Economics that showed the economies of China, Brazil, Taiwan and Vietnam improved in January vs. December. In aggregate, this economic growth confirms the views expressed by the management teams of General Electric (GE), Caterpillar (CAT) and others that expect better growth prospects in the emerging markets with more subdued growth in the United States overall. All of those indicators reflect favorably on my Rise and Fall of the Middle Class PowerTrend.
Also in recent days, the management of DuPont (DD) chimed in and agreed with its counterparts from GE and Caterpillar that the domestic market will be one of slow growth in general terms. However, DuPont did call out two areas of strength in the domestic economy that PowerTrend investors have been positioned to tap for some time - automotive and housing - as part of my Better, Smarter America PowerTrend. While some market observers are tempted to think those companies have had their run, sifting through the data and examining each industry's respective pain points to further improvement ahead.
A representative of American Water Works reiterated that our domestic water system is in horrible shape and pointed out that the American Society of Civil Engineers (ASCE) forecasts the need for $255 billion in spending to upgrade our drinking water and wastewater infrastructure. Not only is that another aspect of my Scarce Resource PowerTrend, but it's a pain point that needs to be addressed before too long. As subscribers to PowerTrend Profits have learned, while not much fun in and of themselves, pain points help to identify good investment prospects.
I moderated a second panel discussion while in Orlando titled Discover the Value of Active Management. Joining me for that conversation: Bernard Horn, president of Polaris Capital Management; Hardeep Walia, CEO of Motif Investing; and Legg Mason's Robert Ionescu. Aside from talking about each firm's investment style, we debunked the notion of "buy and sleep" investing in favor of "buy and continuous homework" to generate superior returns compared to the major market indices.
While the S&P 500 is now back to levels last seen in October 2007, investors who were asleep at the switch are only now back to where they were more than five years ago. By comparison, active investors were able to invest in companies like data center company Equinix (EQIX) that is up 132% during the same period or mobile chip company Skyworks Solutions (SWKS) that soared 170% during the last 60-plus months. What both of those companies have in common is that their respective businesses benefitted from the drivers behind my Always On, Always Connected PowerTrend.
Supporting data like this is had every week for PowerTrend investing; come get on board by clicking here to join in on the fun and profits.
PowerTalk with Best-Selling Author Daniel Pink on the Future of Sales
This week's PowerTalk interview is with Daniel Pink, the New York Times bestselling author of "Drive," "A Whole New Mind" and the brand-new "To Sell is Human." He is a frequent guest on CNBC and CNN. In the interview, Dan and I discuss "To Sell is Human" and go through some of what he reveals in the book. Dan explains how we are all salespeople in one form or another. He talks me through how to "sell" my daughter on cleaning her room. We then touch on how technology like the Internet and smartphones are changing the roles of sales and sales people - yet another way the Always On, Always Connected PowerTrend is touching all facets of our lives.
Finally, pulling from one of my favorite parts of the book (and a fantastic movie), Dan re-imagines the famous Alec Baldwin "Always Be Closing" quote from Glengarry Glen Ross for the new era of sales, changing it to "Attunement, Buoyancy and Clarity." We touch on what the changing sales environment means for companies like Tupperware (TUP), Herbalife (HLF), Nu Skin (NUS) and Avon Products (AVP), among other sales organizations. Click here to listen to my conversation with Dan Pink.
To read my e-letter from last week, please click here. I also invite you to comment about my column in the space provided below.
Sincerely,
Chris Versace
Editor, PowerTrend Brief
I started off this communique by saying last week was a busy one. As you'll see below, this week will be a little better as we migrate deeper into corporate earnings season. Here's a look at which companies will report their results this trading week, as well as a look at what economic data will be hitting the tape in the coming days:
Monday, Feb. 4
Factory Orders (December)
Markit Japan Composite PMI (January)
Baidu.com (BIDU)
Beazer Homes (BZH)
The Clorox Company (CLX)
Hologic Inc. (HOLX)
Sysco Corp. (SYY)
Zoltek Companies (ZOLT)
Tuesday, Feb. 5
ISM Services Index (January)
HSBC China Composite PMI (January)
Markit Eurozone Composite PMI (January)
Arch Coal (ACI)
Archer Daniels Midland (ADM)
Automatic Data Processing, Inc. (ADP)
AGCO Corp. (AGCO)
ARM Holdings (ARMH)
Cerner Corp. (CERN)
Church & Dwight Co (CHD)
Chipotle Mexican Grill (CMG)
The Walt Disney Company (DIS)
Delphi Automotive (DLPH)
Eaton Corp. (ETN)
The Hain Celestial Company (HAIN)
Kellog (K)
Regal-Beloit Corp. (RBC)
Revlon,Inc. (REV)
Shutterfly, Inc. (SFLY)
SIRIUS Satellite Radio (SIRI)
The Scotts Miracle-Gro Company (SMG)
Trimble Navigation (TRMB)
Wednesday, Feb. 6
MBAB Mortgage Index (Weekly)
HSBC Emerging Markets Index (January)
Apollo Investment Corp. (AINV)
Akamai Technologies (AKAM)
Cummins Inc. (CMI)
CVS/Caremark Corp. (CVS)
DuPont Fabros Technology (DFT)
DeVry Inc. (DV)
Green Mountain Coffee (GMCR)
LeapFrog Enterprises (LF)
Measurement Specialties (MEAS)
Marathon Oil Corp. (MRO)
News Corp. (NWS)
Penske Auto Group (PAG)
Panera Bread Company (PNRA)
Polo Ralph Lauren Corp. (RL)
Spectrum Brands (SPB)
Stericycle, Inc. (SRCL)
Stanley Furniture Co. (STLY)
True Religion (TRLG)
Time Warner Inc. (TWX)
USG Corp. (USG)
Thursday, Feb. 7
Initial & Continuing Jobless Claims (Weekly)
Productivity (4Q 2012)
Unit Labor Costs (4Q 2012)
Consumer Credit (December)
Advance Auto Parts (AAP)
Alcatel-Lucent (ALU)
Bunge Limited (BG)
Badger Meter Inc. (BMI)
Cardtronics (CATM)
Coca-Cola Enterprises (CCE)
Columbia Sportswear Co. (COLM)
Coinstar, Inc. (CSTR)
Eagle Materials (EXP)
Flowers Food, Inc. (FLO)
Hasbro Inc. (HAS)
Starwood Hotels & Resorts (HOT)
International Flavors & Fragrances (IFF)
Ingredion Inc. (INGR)
iRobot Corp. (IRBT)
Linkedin Corp. (LNKD)
Monster Worldwide (MWW)
Noble Energy (NBL)
Nuance Corp. (NUAN)
The New York Times Co. (NYT)
OpenTable, Inc. (OPEN)
Philip Morris International (PM)
Regal Entertainment (RGC)
Rofin-Sinar Technologies (RSTI)
Sprint-Nextel Corp. (S)
Snap-On Inc. (SNA)
Sony Corp. (SNE)
Vodafone Group (VOD)
Xylem Inc. (XYL)
Friday, Feb. 8
Trade Balances (December)
Wholesale Inventories AOL Inc. (AOL)
American Axle & Manufacturing (AXL)
Laboratory Corp. of America (LH)
Moody's Corp. (MCO)
Sensient Technologies Corp. (SXT)
