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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: MCsweet who wrote (52062)	8/9/2013 10:50:13 AM
From: Jurgis Bekepuris	1 Recommendation Recommended By MCsweet Read Replies (2) \| Respond to of 78644

I think that this is the point of our disagreement: He began by limiting his search to firms whose book/market ratios (the inverse of the price/book ratio) were in the top 20% of the market. He then ran So he starts with stocks with low P/book. That's the screen. Then he applies Piotroski scores to those companies. I don't believe that's what proponents of Piotroski screen do. They just run Piotroski score on all companies. But perhaps I am wrong. :)

To: MCsweet who wrote (52062)	8/9/2013 12:09:32 PM
From: Paul Senior	Read Replies (1) \| Respond to of 78644

Piotroski: I've found the AAII "screen" helpful but mostly irrelevant. That's because over the years that I've followed it, there have been so few companies that fit the requirements. Right now there are GAI, FDP, SKWY. What are you going to do - create a portfolio with three companies -- just these three outliers? You have to have plenty of courage and conviction to do that with decent money. Maybe after looking closer at the companies that show up every year (maybe 7-10 I guess), maybe just buy one or a couple to make a part of one's portfolio. Not an outsize bet though based solely on Piotroski score or the screen's record. And so using Piotroski like that would be like using any other screen, in my view. Actually all three of these companies have been mentioned here one time or another. I've followed (owned) GAI for many years as it struggled along (don't have it now), and the thread's mentioned FDP (which I do own) in conjunction with DOLE.