Thursday, September 14, 2006

1
Thursday, September 14, 2006
Presented by Priya J. Kapila
2
Federal Reserve Bank

• St. Louis Fed. President William Poole
• Inflation above comfort range
• Act on this earlier then later
• San Francisco Fed. President Janet Yellen
• Weathered high inflation storm but will maintain
  bias to high interest rates
• Inflation lowering, but so is growth

3
International Markets

• U.S. dollars
• Trade deficit hit a record 68 billion
• Euro
• Predictions of a slim contraction in French trade
  
• Inflation at the wholesaler level in Germany grew
  0.6 month over month, exceeding expectations
• Reiteration the central banks vigilant stance
  on inflation
• Japanese Yen
• 16.7 drop in machine orders
• The dollar hovered near a two-month high against
  the yen after the announcement of a weak Japanese
  index

4
Exchange Rates
U.S. to Euro
U.S. to Yen
5
Stock Index - Asia
BSESN vs. SP 500
6
Stock Index - Europe
7
Consumer Staples

• Market Cap 2567.5B (2575.3B)
• P/E 25.49 (25.14)
• ROE 16.54 (16.73)
• Dividend Yield 2.27 (2.19)
• Long Term Debt to Equity 1.17 (1.17)
• Price to Book Value -0.71 (-0.01)
• Net Profit Margin 6.80 (6.83)
• Price to Free Cash Flow 70.79 (72.72)

8
Consumer Staples
9
Consumer Staples
10
Services

• Market Cap 2913.2B (2925.6B)
• P/E 26.27 (25.98)
• ROE 14.88 (14.81)
• Dividend Yield 1.34 (1.33)
• Long Term Debt to Equity 1.17 (1.28)
• Price to Book value 4.43 (6.48)
• Net Profit Margin 5.61 (5.7)
• Price to Free Cash Flow -118.98 (79.36)

11
Services
12
Financial

• Market Cap 5429 B (5461B)
• P/E 14.17 (13.9)
• ROE 16.86 (16.27)
• Dividend Yield 2.61 (2.62)
• Long Term Debt to Equity 2.69 (3.47)
• Price to Book Value 2.89 (2.82)
• Net Profit Margin 12.66 (12.76)
• Price to Free Cash Flow -21.48 (-41.61)

13
Financial
14
Utilities

• Oil prices have fallen nearly 3 on Tuesday,
  Sept. 12, and are now less than 64/barrel.
• Kinder Morgan has announced plans to invest 195
  million in Texas facilities to increase its
  storage capacity by 3.4 million barrels.
• Ruth Shaw, President of Duke Nuclear, will retire
  from Duke Energy Corp. in April, 2007.
• Kansas City Power Light, a subsidiary of Great
  Plains Energy, has announced that it's wind
  facility is now fully operational and capable of
  producing 100.5 megawatts of energy, or enough
  for approximately 33,000 homes annually.

15
Utilities
16
Utilities

• Market Cap 932.4B (948.9B)
• P/E 36.06 (33.97)
• ROE 16.02 (16.01)
• Dividend Yield 4.24 (4.51)
• Long Term Debt to Equity 2.31 (2.31)
• Price to Book Value 2.72 (2.72)
• Net Profit Margin 9.57 (9.54)
• Price to Free Cash Flow -57.35 (-64.36)

17
Healthcare

• Bristol-Myers fires CEO Peter Dolan under
  pressure from a federal overseer, putting an end
  to an unpopular five year tenure.
• Two studies showed evidence that certain
  painkillers, such as Vioxx, can cause kidney
  problems, adding that to the heart concerns
  already raised by the drug. Merck is still facing
  11,500 liability lawsuits over Vioxx.
• The Bush Administration announced that higher
  income Medicare patients will be required to pay
  a surcharge on their premium. This is expected to
  make Medicare more sustainable in the long term.
• The FDA is seeking to regulate certain new types
  of diagnostic tests. This could raise the costs
  of introducing them.

18
Healthcare

• Market Cap 2578.4B (2566.1B)
• P/E 44.48 (46.37)
• ROE 14.71 (14.63)
• Dividend Yield 1.63 (1.62)
• Long Term Debt to Equity 0.47 (0.45)
• Price to Book Value 45.15 (45.03)
• Net Profit Margin 11.32 (11.36)
• Price to Free Cash Flow 52.69 (72.3)

19
Healthcare
20
Technology

• On September 12, 2006 Microsoft launched new
  Windows Live Search engine
• ATT, Verizon to Manage McGraw-Hill Network On
  September 12, 2006 McGraw-Hill Cos., owner of
  BusinessWeek and credit ratings agency Standard
  Poor's, signed multiyear agreements with ATT
  Inc. and Verizon Business under which Verizon and
  ATT would manage the company's telecom network.
• Apple introduces new versions of iPod As of
  September 12, 2006 Apples iTunes online music
  store will begin selling movies from Disney,
  Pixar, and Touchstone as the company makes its
  most aggressive move yet into the digital home.
• As of September 12, 2006 hard drive manufacturer
  Seagate Technology plans to offer 1.25 billion
  in senior unsecured notes and enter an amended
  and restated unsecured revolving credit facility.

21
Technology

• Market Cap 5417.4B (5327.8B)
• P/E 28.0 (28.48)
• ROE 14.91 (15.90)
• Dividend Yield 1.93 (1.97)
• Long Term Debt to Equity 0.63 (0.63)
• Price to book value 4.62 (5.24)
• Net profit margin 10.58 (10.76)
• Price to free cash flow 61.46 (115.19)

22
Technology