Stock Market Beat Magazine Cover Indicator
2938 views
Rate Now: 1 2 3 4

average rating: 0.00 / 0 ratings
Created by Trent
DESCRIPTION:

Date updated:08-04-2007

Conventional wisdom holds that magazine cover stories are contrarian indicators - by the time a company's success or failure reaches the cover page of a major publication the story is so well known as to be completely reflected in the stock price. Therefore, all good news is priced in and the stock can only underperform or all bad news is priced in and the stock can only outperform.

While simplistic, the magazine cover indicator now has the support of recent academic research. This research did find that cover story headlines on Business Week, Fortune and Forbes tended to indicate that the mood (bullish or bearish) of the story was about to change in the market.

As a result of this research, we have decided to develop a portfolio of stocks based on using those three magazine's covers as a contrary indicator.

symbol name last price % change open
  • +
  • MMM
    3m Co
  • $59.96
  • 0.00%
  • $59.24

Business Week: International Business News : Business News, Technology Industry News 3M’s Innovation Crisis Delve into IN5, our supplement devoted to innovation. This issue’s theme: Managing the yin and yang of efficiency and creativity — a delicate balance illustrated by one of the great innovators of American business

People owning MMM also tend to own: AAADPAVPBACBRK-BBUDCSCO

TheStreet.com Rating: C+ What is this?

  • +
  • INFY
    Infosys Technolog
  • $36.39
  • +1.93%
  • $35.80

International Business News : Business News, Technology Industry News The Real Cost Of Offshoring U.S. data show that moving jobs overseas hasn't hurt the economy. Here's why those stats are wrong Contrary Pick: Hmm. Is this headline negative about offshoring or the US economy? I'm going with offshoring and saying the contrary pick is to buy the offshore firms like Cognizant (CTSH), Infosys (INFY) and Wipro (WIT).

People owning INFY also tend to own: HINDALCOITCSAILTATA TEATCSBRCMCTSH

TheStreet.com Rating: C What is this?

  • +
  • CTSH
    Cognizant Technol
  • $26.67
  • +0.34%
  • $26.64

International Business News : Business News, Technology Industry News The Real Cost Of Offshoring U.S. data show that moving jobs overseas hasn't hurt the economy. Here's why those stats are wrong Contrary Pick: Hmm. Is this headline negative about offshoring or the US economy? I'm going with offshoring and saying the contrary pick is to buy the offshore firms like Cognizant (CTSH), Infosys (INFY) and Wipro (WIT).

People owning CTSH also tend to own: DILGDIHBIOKIMSLWSPARBRCM

TheStreet.com Rating: C+ What is this?

  • +
  • WIT
    Wipro Ltd
  • $12.51
  • 0.00%
  • $12.79

International Business News : Business News, Technology Industry News The Real Cost Of Offshoring U.S. data show that moving jobs overseas hasn't hurt the economy. Here's why those stats are wrong Contrary Pick: Hmm. Is this headline negative about offshoring or the US economy? I'm going with offshoring and saying the contrary pick is to buy the offshore firms like Cognizant (CTSH), Infosys (INFY) and Wipro (WIT).

People owning WIT also tend to own: ADMMLIMSFTTXNNTQLGCACAS

TheStreet.com Rating: C What is this?

  • +
  • LFC
    China Life Insura
  • $57.12
  • 0.00%
  • $57.39

Business Week (7/23/07) says China is Broken. That's enough for a long position.

People owning LFC also tend to own: CHLCOSTDHSGIGMIGTMIKRCII

TheStreet.com Rating: No Rating What is this?

  • +
  • NVR
    Nvr Inc.
  • $514.32
  • 0.00%
  • $499.91

Business Week: Bonfire of the Builders

People owning NVR also tend to own: AIGALLAPCBHPCCATCFC

TheStreet.com Rating: C- What is this?

 

Start Price

Return Value

Start Date
MMM 88.43 -32.19% Jun 2nd
INFY 49.72 -26.81% Jun 9th
CTSH 75.47 -64.66% Jun 9th
WIT 16.09 -22.25% Jun 9th
LFC 59.71 -4.34% Jul 15th
NVR 599.00 -14.14% Aug 4th

Average return:

 -27.83%

Success rate:

 0%

Hated Stocks:
EBAY 34.20 -47.49% May 12th
SPY 150.86 -37.13% May 12th
GML 68.67 -13.98% May 18th
LTI 1.02 0.00% Jun 2nd
TTH 40.56 -43.15% Jun 16th

Tracking Started: 05-12-2007

Comments not available

ADD YOUR COMMENTS:

latest articles | popular forums
Four Must-See Charts: Stem Cell ...

By Stockpickr Staff Posted on July 2, 2009 Developments in the stem cell world are starting to get very interesting. On Tuesday, General Electric (GE) signed an exc...

07.02.09 | 15:19 PM
Stockpickr's Picks of the Day: J...

By Rebecca Corvino Posted on July 2, 2009 Every day, Stockpickr members are creating and sharing stock ideas with each other through various platforms. If you're not al...

07.02.09 | 13:43 PM
Cramer's Take on Headline Stocks...

By Rebecca Corvino Posted at 12:30 p.m. EDT on July 2, 2009 Making Thursday's headlines and sending stocks lower were reports that June saw the loss of 467,000 more job...

07.02.09 | 12:31 PM
Dividend Stocks for the Week

By Stockpickr Staff Posted on July 2, 2009 Some investors assume that at this time of year, it's the summer doldrums for the stock market. After all, as the saying goe...

07.02.09 | 11:02 AM
more articles
General market Technical Analysi...
11.14.07 | 22:55 PM From author ZA
The Presidential/Political Thread
01.02.08 | 08:05 AM From author Dave Cox
what happened to DSCO?
07.02.09 | 11:45 AM From author Disco Duck
Nymph's Trading Daily Trading Diary
04.13.09 | 01:10 AM From author Trading Nymph
more forums
recent answers | popular answers
bubble(1)
Q. hgsi lupus drug. results on jul...
07.03.09 | 23:42 PM Asked by 1surfer2

A. the data seems really positive ... I
just read through BioMedReports and
thought it was impressive - the largest
lupus trial ever.

show all recent stockpickr answers
today 's lists
Rising on Unusual Volume

Here are some stocks that moved up on unusual volume on July 1, 2009. more

Analyst Upgrades

Analyst Upgrades for July 1, 2009. Read more here. more

Analyst Downgrades

Analyst Downgrades for July 1, 2009. Read more here. more

show all today's lists