Weekly Reputation Index Metrics

At the close of trading July 27, 2012, REPUVART and REPUVAR stood at 2743.15 and 2366.62 respectively. Over the past four weeks, the former has changed by -1.71%, while the latter has changed by -1.73%. The benchmark S&P500 Composite Index stood at 1207.21 (31 Dec 2001=1000) and has changed over the past four weeks by 1.75%.

Over the trailing twelve months, REPUVART and REPUVAR have, respectively, changed by 1.27% and -0.18% respectively; the S&P500 Composite Index has changed by 7.25%. Since January 2009, the REPUVART and REPUVAR have changed by 119.22% and 106.07% respectively; the S&P 500 Composite Index has changed by 48.74%.

Other interval changes in the magnitude of the indices are shown below.

Analysis

Capital continues to flow disproportionately to the Index funds. As a result, equity markets are narrowing the usual spread between RepuStars Variety and the S&P500 to only 0.57%. At the same time, the RepuStars-selected S&P500 spread, a pocket index, has grown significantly with a year-to-date return of 16.0% and a spread over the S&P500 of 9.8%

Turning to companies who appear to have been undervalued at the start of this calendar year, the greatest gains in the 2012 RepuStars portfolio are being reported by American Eagle Outfitters (AEO) regains the first-place prize returning for the year 51.48%. Moving up to the #2 slot is eBay Inc. (EBAY) at 41.62% for the year. New to third place is Constellation Brands (STZ) with a year-to-date climb of 41.20%. These are three of the 38 firms identified by the RepuStars Variety algorithm at the start of the year as value opportunities.

Side Note: A description of the 2012 portfolio constituents can be obtained here: click here.

Background

The RepuStars® Variety Corporate Reputation Index calculated by Dow Jones Indexes is the first-ever composite equity index based on a quantitative value strategy informed by the Steel City Re corporate reputation ranking metrics. The metrics comprise non-financial indicators of reputational value. The RepuStars Variety Index has two versions: a total returns index and a price index, whose ticker symbols are, respectively, REPUVART and REPUVAR.  Click here for real time quotes.

The RepuStars Variety Corporate Reputation Index tracks up to 57 company stocks that appear to be underpriced relative to their metrics as measured by Steel City Re’s proprietary Corporate Reputation Rank™, which tracks 7000 companies weekly. In using the RepuStars Index as an investment strategy, investors can take advantage of this price disparity. The principles behind Steel City Re's reputation metrics are discussed in the book, Mission:Intangible (see below).

The RepuStars indices are reconstituted annually in the first week of January and posted by Dow Jones Indexes in the third week. The Indices were last reconstituted 20 Jan 2012.  Click here for additional information on the index.

Reputation, Risk and Finance

Reputation management through superior control of a company's intangible assets may be one of the best paths to value creation today. If it is not on your agenda, perhaps it should be. Here are several things you can do right now to start creating value for your organization:

1. Become better informed. Participate in our regular Mission Intangible Monthly Briefings held on the first Friday of every month or read the book, Mission: Intangible. Managing risk and reputation to create enterprise value, available at the IAFS Store, specialty finance sector retailers, or other leading online book retailers. 
2. Become a member of the Intangible Asset Finance Society and engage.
3. Join our community on Linked-In and stay in the information flow.

Notices

STEEL CITY RE and REPUSTARS are registered trademarks of C. Huygens & Co. LLC and are used under license. Investment products based on the RepuStars Variety Corporate Reputation Indexes are not sponsored, endorsed, sold or promoted by Technology Option Capital, LLC, C. Huygens & Co, LLC, Steel City Re, LLC, or their respective affiliates and none of Technology Option Capital, LLC, C. Huygens & Co, LLC, Steel City Re, LLC and their respective affiliates make any representation regarding the advisability of investing in such products. Inclusion of a company in any of the indexes in this piece does not in any way reflect an opinion of Technology Option Capital, LLC, C. Huygens & Co, LLC, Steel City Re, LLC or any of their respective affiliates on the investment merits of such company. None of Technology Option Capital, LLC, C. Huygens & Co, LLC, Steel City Re, LLC or any of their respective affiliates is providing investment advice in connection with these indexes. The RepuStars Variety Corporate Reputation Indexes are calculated by Dow Jones Indexes, the marketing name and the licensed trademark of CME Index Services, LLC. (CME Indexes). Dow Jones Indexes is a service mark of Dow Jones Trademark Holdings LLC. (Dow Jones). Investment products based on the RepuStars Variety Corporate Reputation Indexes are not sponsored, endorsed, sold or promoted by CME Indexes, Dow Jones or their respective affiliates, and CME Indexes, Dow Jones and their respective affiliates make no representation regarding the advisability of investing in such product(s).

It was only 11 months ago, on 25 August 2011, that Berkshire Hathaway Inc., Warren Buffett's investment company, agreed to sink $5 billion into Bank of America Corp, the beleaguered financial giant. The deal helped allay fears that America's biggest bank needs a fresh infusion of capital to withstand mortgage losses and another downturn in the economy. The investment was both fresh capital and a market signal -- a reputation thing, if you will.

Last week, Jamie Dimon, CEO of JP Morgan Chase, pulled a Buffet Lite. Dimon, his wife, and a limited-liability company linked to him bought $17.1 million of the bank’s shares after the stock slid amid trading losses. “I expect this is meant as a sign of his confidence in the bank,” John Coffee, a securities-law professor at Columbia University Law School, said in an e-mail to Bloomberg. Like insurances and other financial guarantees, it may be the best PR money can buy.

Weekly Reputation Index Metrics

At the close of trading 20 July, 2012, REPUVART and REPUVAR stood at 2737.42 and 2361.67 respectively. Over the past four weeks, the former has changed by 1.17%, while the latter has changed by 1.11%. The benchmark S&P500 Composite Index stood at 1186.90 (31 Dec 2001=1000) and has changed over the past four weeks by 2.07%.

Over the trailing twelve months, REPUVART and REPUVAR have, respectively, changed by -3.78% and -5.18% respectively; the S&P500 Composite Index has changed by 1.31%. Since January 2009, the REPUVART and REPUVAR have changed by 118.76% and 105.64% respectively; the S&P 500 Composite Index has changed by 46.24%.

Other interval changes in the magnitude of the indices are shown below.

Analysis

The Financial Times explained this week that "defensive tactics are helping indices stay aloft, despite threats from a sputtering economy, Europe’s debt problems and a hard landing in China." Indeed. Equity markets are narrowing the usual spread between RepuStars Variety and the S&P500 to only 2.17%. At the same time, the RepuStars-selected S&P500 spread, a pocket index, has grown significantly with a year-to-date return of 16.6%. Said another way, year to date, RepuStars Variety has rewarded investors with a 32% (46% Total Returns) better return than the S&P500; while the RepuStars/S&P500 Select has rewarded investors with a 122% better return..

Turning to companies who appear to have been undervalued at the start of this calendar year, the greatest gains in the 2012 RepuStars portfolio are being reported by American Eagle Outfitters (AEO) regains the first-place prize returning for the year 48.52%. Slipping to second place is Vertex Pharmaceuticals (VRTX) with a year-to-date climb of 41.20%. New to the #3 slot is eBay Inc. at 40.46% for the year. These are three of the 38 firms identified by the RepuStars Variety algorithm at the start of the year as value opportunities.

Side Note: A description of the 2012 portfolio constituents can be obtained here: click here.

Background

The RepuStars® Variety Corporate Reputation Index calculated by Dow Jones Indexes is the first-ever composite equity index based on a quantitative value strategy informed by the Steel City Re corporate reputation ranking metrics. The metrics comprise non-financial indicators of reputational value. The RepuStars Variety Index has two versions: a total returns index and a price index, whose ticker symbols are, respectively, REPUVART and REPUVAR.  Click here for real time quotes.

The RepuStars Variety Corporate Reputation Index tracks up to 57 company stocks that appear to be underpriced relative to their metrics as measured by Steel City Re’s proprietary Corporate Reputation Rank™, which tracks 7000 companies weekly. In using the RepuStars Index as an investment strategy, investors can take advantage of this price disparity. The principles behind Steel City Re's reputation metrics are discussed in the book, Mission:Intangible (see below).

The RepuStars indices are reconstituted annually in the first week of January and posted by Dow Jones Indexes in the third week. The Indices were last reconstituted 20 Jan 2012.  Click here for additional information on the index.

Reputation, Risk and Finance

Reputation management through superior control of a company's intangible assets may be one of the best paths to value creation today. If it is not on your agenda, perhaps it should be. Here are several things you can do right now to start creating value for your organization:

1. Become better informed. Participate in our regular Mission Intangible Monthly Briefings held on the first Friday of every month or read the book, Mission: Intangible. Managing risk and reputation to create enterprise value, available at the IAFS Store, specialty finance sector retailers, or other leading online book retailers. 
2. Become a member of the Intangible Asset Finance Society and engage.
3. Join our community on Linked-In and stay in the information flow.

Notices

STEEL CITY RE and REPUSTARS are registered trademarks of C. Huygens & Co. LLC and are used under license. Investment products based on the RepuStars Variety Corporate Reputation Indexes are not sponsored, endorsed, sold or promoted by Technology Option Capital, LLC, C. Huygens & Co, LLC, Steel City Re, LLC, or their respective affiliates and none of Technology Option Capital, LLC, C. Huygens & Co, LLC, Steel City Re, LLC and their respective affiliates make any representation regarding the advisability of investing in such products. Inclusion of a company in any of the indexes in this piece does not in any way reflect an opinion of Technology Option Capital, LLC, C. Huygens & Co, LLC, Steel City Re, LLC or any of their respective affiliates on the investment merits of such company. None of Technology Option Capital, LLC, C. Huygens & Co, LLC, Steel City Re, LLC or any of their respective affiliates is providing investment advice in connection with these indexes. The RepuStars Variety Corporate Reputation Indexes are calculated by Dow Jones Indexes, the marketing name and the licensed trademark of CME Index Services, LLC. (CME Indexes). Dow Jones Indexes is a service mark of Dow Jones Trademark Holdings LLC. (Dow Jones). Investment products based on the RepuStars Variety Corporate Reputation Indexes are not sponsored, endorsed, sold or promoted by CME Indexes, Dow Jones or their respective affiliates, and CME Indexes, Dow Jones and their respective affiliates make no representation regarding the advisability of investing in such product(s).

Marissa Ann Mayer is an American business executive and the president and CEO of Yahoo!. Previously, she was a long-time executive and key spokesperson for Google. She is the youngest CEO of a Fortune 500 company. That's the short story according to Wikipedia, the top ranking return today for both Google-branded and Yahoo-branded searches on Mayer. Mashable's poll, a distinctly non-scientific process of some 7500 opinions, reports that "88% of people feel Yahoo made the right decision in choosing Mayer as its new chief." So do the Steel City Re reputation metrics.

The reputation rank is up and climbing; volatility is up but less than peers. Vital signs all look favorable. Reputation value trend directions are positive. Economic returns are significantly up relative to the median return of the peer group. In short, there appears to be an ongoing widespread expectations of better things to come at Yahoo! -- a trend reinforced, but not started, by newly appointed CEO Mayer.

Weekly Reputation Index Metrics

At the close of trading July 13, 2012, REPUVART and REPUVAR stood at 2739.10 and 2363.50 respectively. Over the past four weeks, the former has changed by 2.10%, while the latter has changed by 1.95%. The benchmark S&P500 Composite Index stood at 1181.78 (31 Dec 2001=1000) and has changed over the past four weeks by 1.04%.

Over the trailing twelve months, REPUVART and REPUVAR have, respectively, changed by -2.23% and -3.64% respectively; the S&P500 Composite Index has changed by 3.09%. Since January 2009, the REPUVART and REPUVAR have changed by 118.90% and 105.80% respectively; the S&P 500 Composite Index has changed by 45.61%.

Other interval changes in the magnitude of the indices are shown below.

Analysis

With more than half the year under the belt, it is clear that much is not clear. Sovereigns come in two flavors: too much risk or too little reward. Plan B, for those seeking security and modest returns, are the major indices. As a result, the S&P500 is no longer indexing the broad market which makes it a less than ideal benchmark for many, and a disastrous component of market-neutral hedge fund strategies. Even so, RepuStars Variety continues to outperform the S&P500 for the calendar year.

Turning to companies who appear to have been undervalued at the start of this calendar year, the greatest gains in the 2012 RepuStars portfolio are being reported by Vertex Pharmaceuticals (VRTX) with a year-to-date climb of 47.48%. Still in second place, American Eagle Outfitters (AEO) takes the prize returning for the year 46.13%. New to the #3 slot is Constellation Brands at 39.28% for the year. These are three of the 38 firms identified by the RepuStars Variety algorithm at the start of the year as value opportunities.

As for those whose reputational value has not panned out, the three greatest disappointments this year to date are Walter Energy, Inc. (WLT) at -43.27%, Coeur d’Alene Mines (CDE) at -40.01%, and Gulfport Energy (GPOR) at -39.57%.

Side Note: A description of the 2012 portfolio constituents can be obtained here: click here.

Background

The RepuStars® Variety Corporate Reputation Index calculated by Dow Jones Indexes is the first-ever composite equity index based on a quantitative value strategy informed by the Steel City Re corporate reputation ranking metrics. The metrics comprise non-financial indicators of reputational value. The RepuStars Variety Index has two versions: a total returns index and a price index, whose ticker symbols are, respectively, REPUVART and REPUVAR.  Click here for real time quotes.

The RepuStars Variety Corporate Reputation Index tracks up to 57 company stocks that appear to be underpriced relative to their metrics as measured by Steel City Re’s proprietary Corporate Reputation Rank™, which tracks 7000 companies weekly. In using the RepuStars Index as an investment strategy, investors can take advantage of this price disparity. The principles behind Steel City Re's reputation metrics are discussed in the book, Mission:Intangible (see below).

The RepuStars indices are reconstituted annually in the first week of January and posted by Dow Jones Indexes in the third week. The Indices were last reconstituted 20 Jan 2012.  Click here for additional information on the index.

Reputation, Risk and Finance

Reputation management through superior control of a company's intangible assets may be one of the best paths to value creation today. If it is not on your agenda, perhaps it should be. Here are several things you can do right now to start creating value for your organization:

1. Become better informed. Participate in our regular Mission Intangible Monthly Briefings held on the first Friday of every month or read the book, Mission: Intangible. Managing risk and reputation to create enterprise value, available at the IAFS Store, specialty finance sector retailers, or other leading online book retailers. 
2. Become a member of the Intangible Asset Finance Society and engage.
3. Join our community on Linked-In and stay in the information flow.

Notices

STEEL CITY RE and REPUSTARS are registered trademarks of C. Huygens & Co. LLC and are used under license. Investment products based on the RepuStars Variety Corporate Reputation Indexes are not sponsored, endorsed, sold or promoted by Technology Option Capital, LLC, C. Huygens & Co, LLC, Steel City Re, LLC, or their respective affiliates and none of Technology Option Capital, LLC, C. Huygens & Co, LLC, Steel City Re, LLC and their respective affiliates make any representation regarding the advisability of investing in such products. Inclusion of a company in any of the indexes in this piece does not in any way reflect an opinion of Technology Option Capital, LLC, C. Huygens & Co, LLC, Steel City Re, LLC or any of their respective affiliates on the investment merits of such company. None of Technology Option Capital, LLC, C. Huygens & Co, LLC, Steel City Re, LLC or any of their respective affiliates is providing investment advice in connection with these indexes. The RepuStars Variety Corporate Reputation Indexes are calculated by Dow Jones Indexes, the marketing name and the licensed trademark of CME Index Services, LLC. (CME Indexes). Dow Jones Indexes is a service mark of Dow Jones Trademark Holdings LLC. (Dow Jones). Investment products based on the RepuStars Variety Corporate Reputation Indexes are not sponsored, endorsed, sold or promoted by CME Indexes, Dow Jones or their respective affiliates, and CME Indexes, Dow Jones and their respective affiliates make no representation regarding the advisability of investing in such product(s).

The rest of the nation is sweltering under a general heat wave but it pales in comparison to the burning platform supporting Bob McDonald in Cincinatti. Activist investor Bill Ackman is wielding the torch.

Writes Slate Magazine (R Cyran, 13 July), “Procter & Gamble is a hulking target for an uppity investor like Bill Ackman… Since Bob McDonald replaced Lafley as CEO in 2009, the shares are up 16 percent. The S&P 500 index, however, has gained more than 40 percent over the same span, and rival Colgate’s stock is up almost 50 percent.” We could go on documenting the case being built agains McDonald. Let’s cut to the chase and turn to the Steel City Re reputation metrics.



Over the past few years, Procter & Gamble morphed itself from an marketing/R&D/product development giant into a marketing/licensing/sales machine. Only problem is, it is paying a premium for innovation and is being squeezed by the big box retailers on the other end of the value chain. What do the reputation metrics show? There are 347 companies in the Consumer Non-Durables sector of which 44 compete in the Household/Personal care Industry where Procter & Gamble is one of 20 firms with market caps of $175 billion +/- 35%. Among this peer group, the company’s reputation rank has slipped to the 91st percentile. All of its directional derivative metrics – both its velocity and vector -- are negative. The vital signs chart shows that its reputation value is very volatile. Historically it ranked in the 7th percentile; now it is in the 68th percentile relative to its peers. Its return on equity is in the 60th percentile having lost 3% over the trailing twelve months (median -4%, S&P500 -0.6%). Forward looking metrics show an above average level of stability, which is not good when the trend is negative. Procter & Gamble is a company whose reputation once stood for innovation. The company monetized that innovation with fabulous marketing. It still has great brands, for sure, but what does that mean today if the value chain leaves little for the brand owner at the end?

Weekly Reputation Index Metrics

At the close of trading July 6, 2012, REPUVART and REPUVAR stood at 2776.17 and 2395.49 respectively. Over the past four weeks, the former has changed by 3.22%, while the latter has changed by 3.05%. The benchmark S&P500 Composite Index stood at 1191.19 (31 Dec 2001=1000) and has changed over the past four weeks by 3.16%.

Over the trailing twelve months, REPUVART and REPUVAR have, respectively, changed by -1.80% and -3.21% respectively; the S&P500 Composite Index has changed by 1.77%. Since January 2009, the REPUVART and REPUVAR have changed by 121.86% and 108.58% respectively; the S&P 500 Composite Index has changed by 46.77%.

Other interval changes in the magnitude of the indices are shown below.

Analysis

RepuStars is a value-based algorithm driven by expectations. No one expected what we are now witnessing: the stable Euro losing value, risk-less sovereign debt becoming risky while offering no material return, and a global slowdown that has evaporated demand for energy, minerals, and precious metals. Where to invest? Even so, RepuStars Variety continues to outperform the S&P500 for the calendar year.

Turning to companies who appear to have been undervalued at the start of this calendar year, the greatest gains in the 2012 RepuStars portfolio are being reported by Vertex Pharmaceuticals (VRTX) with a year-to-date climb of 50.54%. Returning to second place, American Eagle Outfitters (AEO) takes the prize with an ROE for the year of 47.79%. Questcor Pharmaceuticals drops to third place at 37.24% for the year. These are three of the 38 firms identified by the RepuStars Variety algorithm at the start of the year as value opportunities.

As for those whose reputational value has not panned out, the three greatest disappointments this year to date are still Gulfport Energy (GPOR) at -39.85%, Walter Energy, Inc. (WLT) at -38.06% and Coeur d’Alene Mines (CDE) at -35.88%.

Side Note: A description of the 2012 portfolio constituents can be obtained here: click here.

Background

The RepuStars® Variety Corporate Reputation Index calculated by Dow Jones Indexes is the first-ever composite equity index based on a quantitative value strategy informed by the Steel City Re corporate reputation ranking metrics. The metrics comprise non-financial indicators of reputational value. The RepuStars Variety Index has two versions: a total returns index and a price index, whose ticker symbols are, respectively, REPUVART and REPUVAR.  Click here for real time quotes.

The RepuStars Variety Corporate Reputation Index tracks up to 57 company stocks that appear to be underpriced relative to their metrics as measured by Steel City Re’s proprietary Corporate Reputation Rank™, which tracks 7000 companies weekly. In using the RepuStars Index as an investment strategy, investors can take advantage of this price disparity. The principles behind Steel City Re's reputation metrics are discussed in the book, Mission:Intangible (see below).

The RepuStars indices are reconstituted annually in the first week of January and posted by Dow Jones Indexes in the third week. The Indices were last reconstituted 20 Jan 2012.  Click here for additional information on the index.

Reputation, Risk and Finance

Reputation management through superior control of a company's intangible assets may be one of the best paths to value creation today. If it is not on your agenda, perhaps it should be. Here are several things you can do right now to start creating value for your organization:

1. Become better informed. Participate in our regular Mission Intangible Monthly Briefings held on the first Friday of every month or read the book, Mission: Intangible. Managing risk and reputation to create enterprise value, available at the IAFS Store, specialty finance sector retailers, or other leading online book retailers. 
2. Become a member of the Intangible Asset Finance Society and engage.
3. Join our community on Linked-In and stay in the information flow.

Notices

STEEL CITY RE and REPUSTARS are registered trademarks of C. Huygens & Co. LLC and are used under license. Investment products based on the RepuStars Variety Corporate Reputation Indexes are not sponsored, endorsed, sold or promoted by Technology Option Capital, LLC, C. Huygens & Co, LLC, Steel City Re, LLC, or their respective affiliates and none of Technology Option Capital, LLC, C. Huygens & Co, LLC, Steel City Re, LLC and their respective affiliates make any representation regarding the advisability of investing in such products. Inclusion of a company in any of the indexes in this piece does not in any way reflect an opinion of Technology Option Capital, LLC, C. Huygens & Co, LLC, Steel City Re, LLC or any of their respective affiliates on the investment merits of such company. None of Technology Option Capital, LLC, C. Huygens & Co, LLC, Steel City Re, LLC or any of their respective affiliates is providing investment advice in connection with these indexes. The RepuStars Variety Corporate Reputation Indexes are calculated by Dow Jones Indexes, the marketing name and the licensed trademark of CME Index Services, LLC. (CME Indexes). Dow Jones Indexes is a service mark of Dow Jones Trademark Holdings LLC. (Dow Jones). Investment products based on the RepuStars Variety Corporate Reputation Indexes are not sponsored, endorsed, sold or promoted by CME Indexes, Dow Jones or their respective affiliates, and CME Indexes, Dow Jones and their respective affiliates make no representation regarding the advisability of investing in such product(s).

Sodom and Gomorrah had a reputation. Las Vegas is its heir apparent, lite. But London?

Bloomberg reports today (Kevin Crowley and Ambereen Choudhury - Jul 6, 2012) that “London risks losing its status as the world’s top financial center as the $360 trillion interest-rate fixing probe follows a series of market abuses by banks that eroded trust in a city already shrinking faster than rivals.”

AIG, Lehman Brothers and Bear Stearns & Co. all traded swaps in London that led to their bankruptcies or bailouts. JP Morgan Chase’s whale traded from London.

Said Bank of England Governor Mervyn King last month, “Everyone now understands that something went very wrong with the U.K. banking industry. From excessive levels of compensation, to shoddy treatment of customers, to a deceitful manipulation of one of the most important interest rates, we can see that we need a real change in the culture of the industry.”

Culture drives the business processes that underpin the impressions stakeholders understand as reputation. Of the six major business processes underpinning reputation, those that foster an ethical environment appear to have been tested and found wanting.

Weekly Reputation Index Metrics

The RepuStars® Variety Corporate Reputation Index calculated by Dow Jones Indexes is the first-ever composite equity index based on a quantitative value strategy informed by the Steel City Re corporate reputation ranking metrics. The metrics comprise non-financial indicators of reputational value. The RepuStars Variety Index has two versions: a total returns index and a price index, whose ticker symbols are, respectively, REPUVART and REPUVAR.  Click here for real time quotes.

Analysis

RepuStars is a value-based algorithm driven by expectations. With the Europeans signaling some level of economic and fiscal cohesion, balanced austerity, and discipline, expectations dormant since January are being realized. Thus RepuStars Variety continues to outperform the S&P500 for the calendar year.

Turning to companies who appear to have been undervalued at the start of this calendar year, the greatest gains in the 2012 RepuStars portfolio are being reported by Vertex Pharmaceuticals (VRTX) with a year-to-date climb of 54.01%. In second place, Questcor Pharmaceuticals takes the prize returning for the year 45.46%. American Eagle Outfitters (AEO) drops to third place at 42.87% for the year. These are three of the 38 firms identified by the RepuStars Variety algorithm at the start of the year as value opportunities.

Side Note: A description of the 2012 portfolio constituents can be obtained here: click here.

Weekly Update

At the close of trading June 29, 2012, REPUVART and REPUVAR stood at 2790.95 and 2408.25 respectively. Over the past four weeks, the former has changed by 8.06%, while the latter has changed by 7.86%. The benchmark S&P500 Composite Index stood at 1186.47 (31 Dec 2001=1000) and has changed over the past four weeks by 6.58%.

Over the trailing twelve months, REPUVART and REPUVAR have, respectively, changed by -0.28% and -1.74% respectively; the S&P500 Composite Index has changed by 1.68%. Since January 2009, the REPUVART and REPUVAR have changed by 123.04% and 109.69% respectively; the S&P 500 Composite Index has changed by 46.19%. Other interval changes in the magnitude of the indices are shown below.

Background

The RepuStars Variety Corporate Reputation Index is the first index based on a quantitative model for analysts, investors, and company managers to help demonstrate the impact of reputation on corporate equity prices. The companies selected for the RepuStars Variety Index are chosen algorithmically to capture the disparity between value at which a company is currently trading and its value as calculated by Steel City Re’s reputational metrics.

The RepuStars Variety Corporate Reputation Index tracks up to 57 company stocks that appear to be underpriced relative to their metrics as measured by Steel City Re’s proprietary Corporate Reputation Rank™, which tracks 7000 companies weekly. In using the RepuStars Index as an investment strategy, investors can take advantage of this price disparity. The principles behind Steel City Re's reputation metrics are discussed in the book, Mission:Intangible (see below).

The RepuStars indices are reconstituted annually in the first week of January and posted by Dow Jones Indexes in the third week. The Indices were last reconstituted 20 Jan 2012.  Click here for additional information on the index.

Reputation, Risk and Finance

Reputation management through superior control of a company's intangible assets may be one of the best paths to value creation today. If it is not on your agenda, perhaps it should be. Here are several things you can do right now to start creating value for your organization:

1. Become better informed. Participate in our regular Mission Intangible Monthly Briefings held on the first Friday of every month or read the book, Mission: Intangible. Managing risk and reputation to create enterprise value, available at the IAFS Store, specialty finance sector retailers, or other leading online book retailers. 
2. Become a member of the Intangible Asset Finance Society and engage.
3. Join our community on Linked-In and stay in the information flow.

Notices

STEEL CITY RE and REPUSTARS are registered trademarks of C. Huygens & Co. LLC and are used under license. Investment products based on the RepuStars Variety Corporate Reputation Indexes are not sponsored, endorsed, sold or promoted by Technology Option Capital, LLC, C. Huygens & Co, LLC, Steel City Re, LLC, or their respective affiliates and none of Technology Option Capital, LLC, C. Huygens & Co, LLC, Steel City Re, LLC and their respective affiliates make any representation regarding the advisability of investing in such products. Inclusion of a company in any of the indexes in this piece does not in any way reflect an opinion of Technology Option Capital, LLC, C. Huygens & Co, LLC, Steel City Re, LLC or any of their respective affiliates on the investment merits of such company. None of Technology Option Capital, LLC, C. Huygens & Co, LLC, Steel City Re, LLC or any of their respective affiliates is providing investment advice in connection with these indexes. The RepuStars Variety Corporate Reputation Indexes are calculated by Dow Jones Indexes, the marketing name and the licensed trademark of CME Index Services, LLC. (CME Indexes). Dow Jones Indexes is a service mark of Dow Jones Trademark Holdings LLC. (Dow Jones). Investment products based on the RepuStars Variety Corporate Reputation Indexes are not sponsored, endorsed, sold or promoted by CME Indexes, Dow Jones or their respective affiliates, and CME Indexes, Dow Jones and their respective affiliates make no representation regarding the advisability of investing in such product(s).