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 […]
The Northern Rock blame game
The authorities are pointing the finger of blame at each other for the implosion of Northern Rock, but who’s really to blame?
You’ve got to watch last Monday’s Dispatches programme (How the banks bet your money *1) presented by Jon Moulton, the financier.
His voice lends authority to the programme might otherwise lack, and also some spice […]
The cheapest six shares on the market #5
Dr Keith Anderson scans the whole market for the cheapest six stocks based on their size, industry and long-term earnings power.
It’s time for Dr Keith Anderson’s quarterly selection of the cheapest six shares on the market.
I’ve explained the maths behind the selection process before*1 but, to summarise, Keith adjusts the price earnings ratio to […]
How to call the financial director
…And get him to call you back. The best way to check you understand how a company makes money is to call its financial director, yet for some reason most investors are too shy!
In fact we’re not just shy, some of us are down right sceptical.
If you’re a regular reader of this blog, I hope […]
More than Behavioural Investing
Behavioural Investing is a rare book. One that lives up to all the promise, and can even distract a man from his Swedish meatballs.
It was over three months ago that James Montier’s new (well it was then) book arrived at Interactive HQ and I received it with high expectations. Amazingly, it’s met them.
I started reading […]
Momentum trumps efficient market
A buy and hold investor touts momentum trading after examing data compiled by Professor Kenneth R French, long-time collaborator of Professor Eugene Fama, architect of the Efficient Market Hypothesis. EMH, in its strictest form, is the theory that states that investors ought not to be able to beat the market using the value effect, the […]
Naked PE recognised
Graeme’s included the Naked PE in his Moneyterms glossary. As I’m a big fan of both, I thought I’d mention it
Keith Anderson, inventor of the Naked PE, publishes a list of the cheapest six stocks on the market every quarter here on the Interactive Investor blog. Here’s the most recent update.
Fooled by swans
CXO Blog finds that rare outlier trading days - the best and worst days in the stockmarket - have:
…A massive impact on long-term stock returns, and attempting to forecast which days is a fool’s errand.
Black swans are rare events of enormous magnitude - major moves in stock market terms - that are difficult to predict. […]
The lessons of subprime turmoil
In the first of four essays exploring the subprime turmoil Professor Stephen Cecchetti, former director of research at the Federal Reserve Bank of New York, says financial crises are not going away.
It’s human nature to push the boundaries of regulation in search of profit - which is why bankers seek to reduce the amount of […]
A hiding to (Con)naught
A cursory look at Connaught (CNT) last week was enough to write it off as a momentum play. Its chart resembles the trajectory of a rocket approaching escape velocity and it’s a fair bet, that it might continue for err… some time.
Not being a momentum investor, I can’t offer an informed view on how long […]
