Growth and Income Taxable portfolio
Monday, November 27, 2017: The share price index of the Growth and Income Taxable portfolio has advanced to a new high relative to the Otos Total Market index. Current relative price to sales is about mid-range in the record of the portfolio. We have collected third quarter sales data for 65 of the 74 companies in the Growth and Income Taxable portfolio representing 90% of the capital value. The portfolio weighted average sales growth rate is 11.4%. The proportion of portfolio weight accounted for by rising sales growth companies is down to 50.6%, compared to 56.9% last quarter. Currently, sales growth is low in the record of the Growth and Income Taxable portfolio but higher than last quarter. Third quarter gross margin data has been collected for 65 of the 74 companies in the Growth and Income Taxable portfolio, representing 90% of the portfolio value. The proportion of total portfolio value accounted for by rising gross profit margin companies is down to 54.4% compared to 67.5% last quarter. The portfolio is recording a low and rising gross profit margin. Inventories are down, improving the chance of a further increase in the gross profit margin. Fixed expenses are low in the record of the portfolio, but falling. fixed expenses are rising at a faster rate than the gross profit margin, producing a falling bottom line profit margin. Interest costs are low in the record of the portfolio and rising. Higher interest costs not only slow the free cash flow growth rate of the portfolio, but are often associated with lower valuation. Make this your benchmark |