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Strategies & Market Trends : Value Investing

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To: E_K_S who wrote (55009)3/6/2015 3:25:11 AM
From: bruwin  Read Replies (2) of 78748
 
" ... over the past four months the F-Score portfolio has returned negative 21.6%."

Is this the case of the ‘Market Value’ (i.e. related to current share price) being lower than the ‘Book Cost’ (i.e. related to the Book Value per share) which should result in the “Market’s conclusion” that the Market Value should move up to better equate with the Book Value and that therefore a buy at the current price should result in a future Capital Gain ?

Should be interesting to see how many of those, apparently, “undervalued” stocks show an increase in their share prices in the future.

Maybe an idea to take a leaf out of Buffett’s preference where one compares a company’s share price to the ratio of its Pretax Earnings per share/Long Term Corporate Bond Rate.
IMO you’re probably more likely to score, in the medium to long term, if its share price is currently lower than the determination of that ratio.
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