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Canada Goose Jackets James Saft is a Reuters columnist. The opinions expressed are his own Canada Goose Jackets

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cheap Canada Goose Dec. 8 (Reuters) There value in the biggest of the big stocks, but ultimately, investment in these global titans is a bet on management doing the right thing by shareholders. exchanges, all of which have market capitalizations of at least $100 billion, have shrunk in https://www.goosefrshop.com recent years, frustrating investors. While price to earnings multiples as recently as 2007 were as high as 17 for the group, the market is now only valuing them at less than 11 times expected 2011 earnings. cheap Canada Goose

While this group is buy canada goose jacket cheap disparate, including companies ranging from Exxon canada goose uk outlet Mobil to Wal Mart to Pfizer, what Canada Goose online many have in common is that cheap canada goose uk they serve markets that will cheap Canada Goose have a tough time growing faster than the economy as a whole. And considering canada goose that many have dominant, or at least leading, positions Canada Goose Coats On Sale within their market, their ability to attract a better valuation through winning market share uk canada goose outlet is limited.

Canada Goose sale Given that the outlook for overall economic growth is dicey at best, investors have lost their enthusiasm for the mega Canada Goose Outlet caps, despite the group producing an attractive earnings yield of about 9 percent. Canada Goose sale

canada goose coats on sale At the same time, when you get uk canada goose that big, there can be an asymmetry in a company risk/reward profile, simply because their room for growth is limited, but they may be overtaken by new technologies or competitors which threaten their main market. Wal Mart, for example, may have a tougher time growing globally than the dollar canada goose clearance sale store underdogs have in competing with it. canada goose coats on sale

canada goose There is value in these mega caps, many of which are sitting on huge and growing cash piles. canada goose

canada goose clearance To know which ones will be rewarding, you have to have canada goose coats on sale a bead on two issues: How the cash will be used, and if management will seek to defend their own position or seek the best outcome for shareholders. canada goose clearance

canada goose coats do these management teams face reality and say you know assets are at maturity. We are growing along with our ultimate market. said David Merkel, a money manager at Aleph Investments, who is also an buy canada goose jacket active blogger on investment issues. you take Canada Goose Jackets a look at these management teams, Canada Goose Online are they honestly making decisions on behalf of shareholders? canada goose coats

canada goose clearance sale In many instances, the best thing for shareholders would be spin offs and de mergers, something that may not appeal to canada goose store the egos or pocketbooks of top executives. canada goose clearance sale

This is exactly Canada Goose Parka the issue for equity Canada Goose sale investors. Though companies can change their capital structure to create value, through dividends, buybacks or spin offs, you have no assurance that they will, and very little power to make them.

DO THE RIGHT THING While a canada goose uk shop smaller company might just have to respond to investor pressure or face a hostile bid, many of the largest companies are more insulated. Try taking over Microsoft if you don believe me.

canada goose store At the same time, there is undoubtedly lots of value locked up, or trapped if you are unlucky, in these companies. canada goose store

buy canada goose jacket cheap Merkel believes that all of the $100 billion plus market cap companies would command better prices if they were broken into more digestible and logical pieces. buy canada goose canada goose femme jacket cheap

Canada Goose Parka For my part, I wouldn hold my breath, but there canada goose uk black friday very likely will be a trend towards returning more capital to shareholders in the form of dividends. This will attract investors who are canada goose clearance seeking to replace canada goose factory sale ongoing income they now no longer get from their bond portfolios. Canada Goose Parka

canada goose deals One thing to watch out for is the acquisition that makes little industrial sense. Take canada goose coats Hewlett Packard for example, which paid $12 billion, a whopping premium, for British software firm Autonomy, in a widely panned deal. This sort of empire building is attractive to canada goose black friday sale incumbent management, which tries to sell investors a new growth area, but which often fails to pay off in the end for shareholders. canada goose deals

canadian goose jacket Much of the decision on which company to throw your lot in with is subjective, because you are placing a wager on a management team commitment to a set of standards you cannot enforce. canadian goose jacket

Canada Goose online Merkel recommends tracking employee and supplier turnover rates, theorizing that the sort of corner cutting that makes for short business relationships often is a marker for bad behavior elsewhere. Canada Goose online

Canada Goose Outlet My own best guess is that while there are some behemoths which will rejig their capital structures and reward investors, we may not quite be at canadian goose jacket the right point in the cycle. If you think we have two or three leans years coming, valuations will fall overall and there will be better entry points ahead. As well, pressure to make hard decisions and spin more units off will only mount as valuations languish Canada Goose Outlet.