Lakonishok Value.
(Investment Titans: Jonathan Burton McGraw-Hill)
http://www.amazon.co.uk/Investment-Titans-Insights-Minds-
Street/dp/0071354964/ref=sr_1_2/202-7523631-
9877467?ie=UTF8&s=books&qid=1178999204&sr=1-2
1. Patience is the most important tool of value investing.
2. Inefficiencies in the market are based on investor behaviour: the outlook for
value stocks tends to be too pessimistic.
3. Use PE, PBV, PCF, and PSR to screen for suitable candidates. PCF is useful for
companies that have negative earning but positive cash flow. PSR is useful for
companies with erratic or no earnings, with negative book value or cash flow.
Then look for companies that are showing price movement or improving analyst
estimates.
4. Select the top 25% of companies by Market Capitalisation.
5. Select companies that have at least one of the 4 ratios with a lower value than
the industry.
6. The 26-week Relative Strength should be positive.
7. The 13-week Relative Strength should be equal or greater than the 26-week RS.
8. No downward revision by analysts in the last month.
9. Select companies with at least one upwards earnings revision.
10. The current average analyst estimate for the year should be greater than the
average estimate from last month.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment