INVESTMENT STRATEGY - VALUE INVESTING - Contrarian Investing.

Contrarian Investing.

Criteria by Gallea and Patalon:

Source: Contrarian Investing by Gallea and Patalon
http://www.amazon.co.uk/exec/obidos/ASIN/0735200009/qid=1068161648/sr=1-
2/ref=sr_1_16_2/026-2297028-0123661


Major:

• Price down 50% from 52-week high.

• Significant Insider buying.

• Two of the following:

PE<12
P/FCF<10
PBV<1
PSR<1

Minor:

• Share price of 300p
• Market Capitalisation of £100m.
• Change in management.


Sell:

• 25% Stop-Loss
• 50% gain or three years