The six cheapest stocks in May
Dr Keith Anderson picks out the very cheapest stocks on the market using his Naked PE ratio. Meanwhile insiders are buying shares in Johnson Service, which was in our last list.
First, here’s the May list, straight from Dr Keith Anderson’s database:
Just in case you haven’t been following the series so far, here’s a recap:
The […]
Rewriting the Financial Stability Report (or the credit boom in a nutshell…)
Just snipped this from the Bank of England’s Financial Stability Report, published today. It’s the credit boom in a nutshell:
A prolonged period of overextension…
For a number of years, low interest rates and benign global economic conditions encouraged higher risk-taking by investors and increased borrowing in parts of the household and corporate sectors. Strong demand for […]
On bankers winning beauty contests
Are banks good investments? Robin Soole, posted a comment saying prospects for banks are not that bad, which explains why prices are going up. I’m replying here, interspersing my comments with his (I think you’ll see why):
Your article reminds me of James Montier’s idea that investment performance is not based on what is true and […]
When a bargain’s not a bargain
Deborah is sceptical about my views on bank valuations. She says:
…we really don’t know which financial companies will survive the deleveraging, by the time share dilution is done they won’t resemble anything like they were before, and their level of historical profits weren’t based on any thing sustainable. My gut feeling is that about half […]
Value investor not conservative enough
Richard Pzena, a “conservative value investor“, explains his methods in Forbes:
The companies at the top of the list are selling for a low price relative to what their histories suggest they should be earning in the future. Now, typically, they’re not earning what their histories suggest, which is why they are at the top of […]
Four reasons banks aren’t cheap enough
Weighing in on bank valuations again, here are four fundamental reasons why I ‘m not buying banks: Price, profits, cashflow, and deposits.
The long-term price earnings ratio is my preferred measure of value. I take the average of up to nine years of earnings and divide it into the current share price. Using the average of […]
If banks aren’t bargains, what are?
There’s a fair degree of scepticism about banks. Citywire has picked up a comment originally reported (I think) by investment banker Barry Ritholz on the Big Picture.
He asks readers to compare the attitude of investors buying ‘bombed out’ financials to the attitude of those buying food and natural resources stocks:
So if you are looking for […]
Value beats growth: the evidence
In a research paper for institutional investors published today, James Montier a proponent of behavioural investing at Soc Gen, demonstrates that value stocks not only return more than growth stocks, they’re also less risky.
That’s good news for value investors, and bad news for those who cling on to conventional finance theory, which says to […]
Johnston Press, Warren Buffett and the decline of the newspaper industry
The newspaper industry was once a licence to print money. It isn’t any more. But it could still be worth investing in, and it can help us discover the superior industries of today.
I’m back from two weeks in Italy, mindful of the fact that I wrote an iBall episode on Johnston Press (JPR) before I […]
Ten boring companies in deep trouble
You’re more likely to see “Ten ballistic stocks to send your portfolio into orbit“ on the cover of the popular investment mags, but the stocks with the most potential are often boring companies, apparently in trouble. How do you find them? You could start here…
Yes boring can be ballistic too. But first, a reader’s stung […]
