Bruwin,
Several OTC stocks qualify as value stocks. Paul has recommended MHCO.PK, and it has done quite well (more than doubled for me).
In the case of VELTEX (VLXC.PK), I think the stock is a scam. However, there are occasional opportunities in these type of stocks, and Paul is not pumping and dumping the stock, so I think it is ok to mention here. I just wouldn't recommend anyone buy this particular one.
Second, book value is book value --- value of assets/liabilities at historical cost with trading assets at current market value (inventories lower of cost or value). Study some basic accounting for a definition. The only real twist is that some people use tangible book value, which subtracts things like goodwill.
Read classic value books by Benjamin Graham, David Dreman, etc for the relevance of Price/Book, but the bottom line is that Price/Book is one of the best-performing value attributes to use for screening stocks.
MC |
