Friday, 2 May 2014

An unexpected problem

DAX containing the German 30 biggest companies

I have since around one year now been running something that I call Personalized Index Fund (PIF). Of "this" fund there is three different version. PIF A which is the simplest one concerns only the share development on the stock market in the last one year. PIF B concerns an evaluation of the P/E, P/B as well as dividend of the companies on DAX and the five best ones are the ones bought and finally PIF C which involves everything in PIF B with the addition that I also take a look at and evaluate the companies according to their ROE and also here only the five best ones are being bought.

Now it starts to be high time to make the update of these PIF funds which then also means that I very soon have to start to go through all the companies on DAX once again and I am afraid that I see that as a higher priority at the moment than going through the Russian and Ukrainian stocks so that project will be put on ice until better times arrives ones again.

In a way I even find it exciting to go over all the DAX companies again. Will Beiersdorf (see analysis of Beiersdorf) still have a crazy high P/E and continue to tickle my shorting nerve besides from being highly overvalued on the market? Is Volkswagen (see analysis of Volkswagen) still having a silly low P/E due to extra-ordinary earnings or have they started to fall back to a more normalized P/E number due to increased share value as well as decreased earnings? Is Lanxess (see analysis of Lanxess) still highly undervalued on the market and a real contrarian case? As you can see the excitement is very high!

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