Taylor Captline
Matthew Chadwell
Hadd Francis
41 companies
11.82% of S&P 500
Telecommunica
tion Services,
2.40%
Utilities, Cash,
2.50% 3.69%
Materials, 3.88%
Sector Industries include:
Agricultural Products
Brewers
Industrials,
Distiller and Vinters
9.44%
Food Distributors
Information
Technology,
Household Products
19.92%
Hypermarkets and Supermarkets
Packaged Foods and Meats
Personal Products
Retail – Drugs
Retail – Food
Soft Drinks
Tobacco
Consumer
Discretionary,
7.93%
Consumer
Staples, 13.06%
Energy, 11.31%
Health Care,
17.74%
Financials,
8.14%
COMPANY NAME
WAL-MART STORES
MRKT CAP 5/1/09
(millions)
% of Sector
$ 196,324.0
18.7%
145,076.0
13.9%
COCA-COLA
98,304.0
9.4%
PEPSICO
77,488.0
7.4%
PHILIP MORRIS INTL
74,507.0
7.1%
CVS/CAREMARK
46,955.0
4.5%
KRAFT FOODS
34,516.0
3.3%
ALTRIA GROUP
33,824.0
3.2%
WALGREEN
COLGATE-PALMOLIVE
31,112.0
30,781.0
3.0%
2.9%
PROCTER & GAMBLE
Top 10 account for 73.4% of sector market cap.
As of 5/1/09
S&P 500
Number of
Companies
MKTCAP
Level as of
5/1/09
Daily
MTD
QTD
YTD
500 $ 7,626,466
877.52
0.54%
0.54%
9.98%
-2.85%
Energy
39 $
977,849
366.87
3.05%
3.05%
8.01%
-5.04%
Materials
28 $
256,116
154.36
0.31%
0.31%
15.45%
12.19%
Industrials
58 $
800,743
192.92
1.10%
1.10%
19.02%
-6.89%
Consumer Discretionary
81 $
717,135
182.29
-0.66%
-0.66%
17.75%
7.61%
Consumer Staples
41 $
917,842
226.43
0.46%
0.46%
3.51%
-8.20%
Health Care
54 $ 1,048,033
280.15
-0.13%
-0.13%
-1.02%
-9.46%
Financials
80 $
908,860
142.95
-1.68%
-1.68%
20.12%
-15.31%
Information Technology
75 $ 1,404,006
271.56
0.58%
0.58%
12.69%
17.15%
Telecommunications Services
Utilities
9$
285,789
105.99
1.42%
1.42%
3.68%
-5.10%
35 $
310,094
134.41
2.66%
2.66%
3.09%
-9.14%
Consumer Staples performing below S&P 500 daily, MTD, QTD and YTD
Information gathered from S&P500
website
25.00%
20.00%
15.00%
10.00%
5.00%
0.00%
S&P 500 Weight
SIM Weight
Consumer Staples is currently weighted at 13.06% in the SIM compared to 12.04%
in the S&P 500. It is currently overweight by 102 bps.

Life cycle
International
Domestic


Business cycle
Bernanke testified today that recession should
end later this year.
Supplier
power
Low
Barriers to
entry
High
Competition
High
Buyer
power
High
Substitutes
High
Forward P/E to
S&P 500
Trailing P/E to
S&P 500
Price
Net Profit Margin to
S&P 500
ROE to S&P 500
Mean
Current
AGPRD
16.6
7.3
BRWRS
17.9
12.3
DSTLR
18.5
11.6
FOODD
20.7
13.8
HSHLD
20.4
12.2
HYPMK
16.9
14.9
PKGFD
18.6
13.1
CSMTG
23.8
15.9
RTDRG
22.8
13.5
FOODR
13
9.8
BEVGS
21.2
13.7
TBACO
11.9
11.1
AGPRD – mean reversion
Hit hard by recession
HYPMK – stable
TBACO – stable but not showing signs of large growth
Price to
Sales
Price to Book
Price to CF
• Mean Reversion
Price to
Sales
Price to Book
Price to CF
Current values extremely close to mean values
Sector
P/E
P/E
P/E TO
P/E
P/E TO
P/E
LATEST
5 YR
5 YR
10 YR
10 YR
REL TO
4 QTRS
AVG
AVG
AVG
AVG
SPX
CONSUMER DISCRETION
30.3
20.4
1.5
21.8
1.4
2.4
CONSUMER STAPLES
13.0
18.6
0.7
20.6
0.6
1.0
ENERGY
6.8
11.7
0.6
16.5
0.4
0.5
FINANCIALS
NM
14.5
NM
15.4
NM
NM
HEALTH CARE
10.4
17.2
0.6
22.1
0.5
0.8
INDUSTRIALS
9.2
17.6
0.5
20.6
0.4
0.7
INFORMATION TECH
14.2
21.5
0.7
33.5
0.4
1.1
MATERIALS
10.8
15.9
0.7
20.5
0.5
0.8
TELECOMMUNICATION
10.7
15.6
0.7
19.1
0.6
0.8
UTILITIES
10.7
16.0
0.7
14.7
0.7
0.8

Reduce sector weight in SIM portfolio by 124
basis points to bring in line with S&P 500.


Economic indicators signal recovery
Sector appears fairly valued
What Questions Do You
Have?