REDMOND, Wash., Oct. 9, 2002 — Microsoft Corp. today announced that the StockScouter benchmark portfolio, featured on the CNBC on MSN®
Money online personal finance service, outperformed the S & P 500 by 34.9 percentage points from August 2001 through August 2002. Launched in July 2001, the unique stock-rating system, found at http://money.msn.com/ , enables consumers to quickly and objectively assess a stock’s potential for outperforming the broader market within a six- to 12-month period.
“These results are a testament to the effectiveness of the StockScouter system in using state-of-the-art technology to rate stocks’ potential for outperforming the market,”
said Chris Jolley, director of marketing for the financial products group at Microsoft.
“Unlike other stock ratings, StockScouter reveals the ‘secret sauce,’ sharing the ingredients behind the number to help consumers make smarter investment decisions.”
Monthly performance results of the StockScouter benchmark portfolio* can be reviewed in CNBC on MSN Money managing editor Jon Markman’s SuperModels column, found at http://moneycentral.msn.com/content/p30306.asp?special=msn . The following are among the StockScouter’s results:
Since its launch in August 2001 through August 2002, the StockScouter benchmark portfolio (rating of 8, 9 or 10 combined with the most-favorable market “tailwinds”) is +10.5 percent, outperforming the S & P 500 at -24.3 percent.
Over the one-year period from September 2001 to August 2002, the StockScouter benchmark portfolio gained 16.02 percent, while the S & P 500 fell 19.19 percent.
In the 13 months since its launch, the StockScouter benchmark portfolio has had just four down months, while the S & P 500 has had eight down months.
In S & P’s worst three months — September 2001 (-8.1 percent), June 2002 (-7.2 percent) and April 2002 (-6.1 percent) — the StockScouter benchmark portfolio showed its strength with the following results: -2.9 percent in September 2001, +0.99 percent in June 2002 and +3.9 percent in April 2002.
StockScouter was developed in conjunction with Camelback Research Alliance Inc., an independent research firm at the cutting edge of financial engineering for institutional money managers. Utilizing a quantitative methodology, StockScouter analyzes and ranks return expectations on approximately 6,000 stocks. In addition to providing the stock rating, StockScouter uses the following factors to help derive that rating, providing a unique, objective and educational tool for evaluating stocks:
Fundamentals assesses a company’s past earnings growth, its estimated future earnings growth and its capacity to beat brokerage analysts’ consensus estimate.
Ownership evaluates whether a stock is under accumulation by executives and board members.
Valuation assesses whether a stock’s price is high or low relative to its current level of sales, earnings and expected earnings growth.
Technical reviews whether a stock’s price trend is positive or negative.
Sector divides stocks into 12 industrial sectors, such as technology or healthcare, by their federal identification code.
Market Cap classifies stocks into four market capitalization categories: The top 400 stocks by market cap are large; the next 1,000 are mid; the next 2,500 are small; and the rest, around 2,300 stocks in June 2001, are micro.
Style is assessed by the price/sales ratio. High-priced stocks are categorized as part of the growth style of investing, while low-priced stocks are categorized in the value style.
Jon Markman supplements this quantitative analysis with commentary about the StockScouter rating. The unique combination of quantitative and expert analysis provides investors with a complete, objective online resource for investment research that is unavailable elsewhere online.
Integration with other award-winning CNBC on MSN Money online personal finance tools such as the Research Wizard and Stock Screener allows consumers to review a wide range of data points when considering new investment ideas. More information on StockScouter can be found at http://moneycentral.msn.com/articles/invest/extra/7102.asp .
About CNBC on MSN Money
CNBC on MSN Money, located exclusively on MSN, is a complete online personal finance service that combines award-winning finance tools and content from Microsoft, the worldwide leader in software, with exclusive investment news and analysis from CNBC, the world’s most popular financial cable news network. CNBC on MSN Money offers consumers the ability to easily complete a wide range of everyday financial tasks, such as paying bills, viewing account balances, tracking investments, planning for retirement and staying informed with the latest financial news, in one convenient place online — any time, any place.
CNBC on MSN Money enables people at all levels of experience to take control of and feel comfortable with their finances, helping them make smart financial decisions. Leading industry publications, including Barron’s, Forbes Magazine, Money Magazine, PC Magazine and PC World Magazine, consistently applaud the sophisticated personal finance tools and information from Microsoft. The service is available at http://www.cnbc.com/ or http://money.msn.com/ , or by visiting MSN at http://www.msn.com/ .
Founded in 1975, Microsoft (Nasdaq
) is the worldwide leader in software, services and Internet technologies for personal and business computing. The company offers a wide range of products and services designed to empower people through great software — any time, any place and on any device.
* Microsoft and MSN Money have no role in the rating of stocks and accompanying analysis, which is prepared by Camelback Research Alliance Inc. Microsoft and MSN Money are not registered investment advisers and do not advise individuals as to the advisability of investing in, purchasing or selling securities or other financial products.
Microsoft and MSN are either registered trademarks or trademarks of Microsoft Corp. in the United States and/or other countries.
The names of actual companies and products mentioned herein may be the trademarks of their respective owners.
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Web page at http://www.microsoft.com/presspass/ on Microsoft’s corporate information pages. Web links, telephone numbers and titles were correct at time of publication, but may since have changed. For additional assistance, journalists and analysts may contact Microsoft’s Rapid Response Team or other appropriate contacts listed at http://www.microsoft.com/presspass/contactpr.asp .