TP2400x272B

Deep value companies that have plunged over 50% - August 2019

After the shake out so far this year here are a few deep value investment ideas of 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
  • Market value over $100m
  • Daily Traded Value over $100,000
  • Financial statements updated in the last 9 months
  • 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:

Deep value investment ideas 201908 1

Click image to enlarge

As you can see some very wild stock price falls.

 

Adding good fundamental momentum

What happens if we take the same list and 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. 

The Piotroski F-Score is a great, easy to use, indicator you can use to substantially increase your returns. You can read more about it 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:

Deep value investment ideas 201908 2

Click image to enlarge

Less extreme price falls but still high

 

Only look for cheap companies

So far the list of companies tell you nothing about how undervalued the companies are.

To find undervalued companies I used the same screening criteria 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 back test

 

What the screen looks like:

  • All companies in our 22,000 company universe
  • Market value over $100m
  • Daily Traded Value over $100,000
  • Financial statements updated in the last 9 months
  • 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)
  • Piotroski F-Score higher than 6
  • Sorted by Qi Value

 

This is what the list of companies look like now:

Deep value investment ideas 201908 3

Click image to enlarge

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

Also the bone jarring price drops got a little bit less but some still over 80%.

 

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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