TP2400x272B

Deep value companies that have plunged over 50% in the past year

After the shake out this year so far I thought you would be interested to see what companies have lost over 50% in value over the past year. Perhaps you can find a few good deep value investments in the results?

 

What the screen looks like

This is what I screened for:

  • All companies in our 22,000 company universe
  • With a one year stock price decline of more than 50% (to do this I used Price index 12m = Current stock price / stock price 12 months ago)
  • Sorted with companies with the biggest decline at the top

These were companies with the biggest price fall:

Plunged_50_percent_past 12m_1 

Click image to enlarge

As you can see some very wild stock price falls.

 

Adding good fundamental momentum

What happens if we only look for companies with good fundamental momentum?

To do this I used the same screen as above but screened out companies with a Piotroski F-Score of below 6. 

You can read more about the Piotroski F-Score here:

Piotroski F-Score back test

Can the Piotroski F-Score also improve your investment strategy?

This academic can help you make better investment decisions – Piotroski F-Score

Use the Piotroski F-Score to seriously improve your returns

How to increase your returns on average 210.6% (max 363.0%) – Piotroski F-Score

Ever thought of using a fundamental stop-loss?

 

This is what the list of companies now looks like:

Plunged_50_percent_past 12m_2 

Click image to enlarge

Less extreme price falls but still high

 

Only look for cheap companies

What happens if you only look for undervalued companies?

To do this I used all the above mentioned criteria and sorted the list of companies using our own developed composite rating called Qi Value

You can read more about Qi Value here:

This investment strategy is working even better than we expected +711%

This outperforms all other valuation ratios (14 year back test result)

Qi Value Investment Strategy

 

This is what the list of companies look like now:

Plunged_50_percent_past 12m_3 

Click image to enlarge

Looks like the largest number of companies are from South Korea but really from all over the world – even the USA.

 

Please do your own research

As with all screens this is just a list of companies that because of the large price fall may have VERY BIG problems.

Therefore do your own research and fact checking.

Your deep value analyst wishing you profitable investing

 

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