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Get Four
|  | DECEMBER 29, 2003
 S&P POWERPICKS PORTFOLIO By Ken Shea and Robert Gold S&P Selects the Best of the Best Forty senior analysts picked their favorite name in the sectors they cover -- and if past returns are anything to go by, investors should take note At Standard & Poor's Equity Research, our team of equity analysts issues investment recommendations on approximately 1,200 U.S. stocks across all 10 economic sectors and nearly all of the 125 industries in the S&P SuperComposite 1500 index (the combined S&P 500, S&P MidCap 400, and S&P SmallCap 600 indexes). So a few years back, we wondered: How could we wrap together our breadth of industry coverage -- and the stock-picking prowess of our analysts -- in a single equity portfolio? The answer: S&P PowerPicks, which we first launched on January 1, 1997. And we're pleased to announce the eighth edition. The S&P PowerPicks 2004 Portfolio represents the collective "best ideas" by the Standard & Poor's equity-research staff. Each of the most senior 40 industry analysts on the staff considers the following stocks in the industries they follow to be best positioned for superior growth. The S&P PowerPicks 2004 portfolio is diversified across all the 10 S&P economic sectors represented in the S&P 500 index. The portfolio will be a "frozen" one, meaning it will undergo no changes throughout the entire year. The objective of the portfolio is to exceed the total return (capital appreciation plus dividends paid) generated by the S&P 500 index during the next 12 months. SIZE ASSORTMENT. The median market capitalization of S&P PowerPicks 2004 is approximately $4.6 billion, ranging from a high of $240 billion for Exxon Mobil (XOM ) to $300 million for Intrado (TRDO ). By contrast, the median market cap of the S&P 500 is approximately $8 billion, ranging from a high of $295 billion for General Electric (GE ) to $600 million for Allegheny Technologies (ATI ). The S&P PowerPicks 2004 Portfolio comprises 18 stocks considered to be large-cap issues (market cap above $5 billion), 14 midcap issues ($1 billion to $4.99 billion), and eight small-cap issues (below $1 billion). STRONG RETURN. The sector representations within the S&P PowerPicks 2004 are closely aligned with the sector weightings of the S&P 500. For example, the most heavily represented sectors within the S&P 500 on a market-capitalization-weighted basis are Financials, Information Technology, and Health Care, whose collective weighting within the index is approximately 51%. The representation of these sectors within the equally weighted S&P PowerPicks 2004 Portfolio is approximately 45%. Since its inception, the S&P PowerPicks portfolio has posted a cumulative total return performance through November 30, 2003, of +99.8%, vs. +58.3% for the S&P 500 index (both including dividends). The S&P PowerPicks 2003 Portfolio's total return performance through November 30 was +30.8%, vs. +22.3% for the S&P 500 index. Here's the roster for the S&P PowerPicks 2004 Portfolio:
For more info on the companies in the S&P PowerPicks 2004 portfolio, please visit http://www.businessweek.com/investor/content/dec2003/pi20031226_9657_pi071.htm  Shea is director of global equity research, and Gold a senior portfolio group analyst, for Standard & Poor's Equity Research All of the views expressed in this research report accurately reflect the research analyst's personal views regarding any and all of the subject securities or issuers. No part of analyst compensation was, is or will be, directly or indirectly related to the specific recommendations or views expressed in this research report. Standard & Poor's Regulatory Disclosure Any advice, analysis, or recommendations contained in articles labeled "Insight from Standard & Poor's" reflect the views of Standard & Poor's, which operates separately from and independently of BusinessWeek Online. It is possible that BWOL may from time to time publish information that is not consistent with advice, analysis, or recommendations that are published by Standard & Poor's. Standard & Poor's and BusinessWeek Online are each units of The McGraw-Hill Companies, Inc.
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