Friday, December 7, 2012

Ladies and gentlemen, start your engines!  It may be almost 6 months until the 97th running of the greatest spectacle in sports but we have Indy on our mind this morning.  That’s because sitting in Quant’s 6th position is INDY whose nifty ticker belongs to the iShares S&P India Nifty 50 Index Fund.   The fund made a big push to pass 47 other funds overnight to get into Quant’s lead lap with those US and China funds that we have been following.  A quick look at its chart shows why.  The S&P 500 has gained almost 4.5% since it bottomed on November 15th, INDY has been burning rubber since then gaining 7.27%.  That has turbocharged its Technical Score up to 75.3 this morning from 44 yesterday with all three time frames leaving the competition in its dust.  Its Sentiment Score of 71.8 has been elevated since that rally began to gather steam in late November but is down a few points over recent days.  Quant loves that kind of momentum but a look beneath the hood shows the fundamentals to be just as impressive.  A yield of 0.47% may not look too impressive but it is about as high as it has ever been, as its Price/Cash Flow ratio of 2.81 is about as low as it has ever been.  Tempering those hot numbers are Price/Earnings and Price/Book Value ratios that come in the middle of their historical range but still contribute to a high 78.1 Fundamental Score.  The Indy Racing League has yet to schedule a race in India and Quant only gives it a 67.9 Country Score which contributes to INDY’s low 56 Global Theme Score.  The low number of constituents also restrains its Quality Score but good liquidity and a strong sponsor in iShares get that one above 70.  All in all those are nicely balanced scores and like the word racecar itself, this one looks just as good whether you see it frontwards or backwards.  We have a long cold winter ahead before race fans come back home to Indiana next Memorial Day weekend but in the meantime Quant thinks we should take a ride in INDY.  Thanks for reading and happy racing!

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