About once a year I like to check out what paid sources exist out in the market. I google to find some free samples and may also do a trial. With regard to research, I highly recommend Value Line, Morningstar and S&P Outlook. However until recently I had not found even one newsletter that I liked or found provided insight or potential leads. And despite looking at … [Read more...]
O’Shaughnessy’s Value Composite Model
Last month, I did a review of O'Shaughnessy investment classic "What Works on Wall Street". It’s only fitting that this month I present one of O'Shaughnessy’s multi-factor models. This can easy be used as a starting point to find a potential investment. After running the model, an investor can do traditional bottoms-up analysis to pick the best opportunities. Or even apply … [Read more...]
Newsletter – January 2015
“What do you call a stock that's down 90%? ... A stock that was down 80% and then got cut in half. - David Einhorn Over the past month I’ve received some encouraging feedback from readers. Some have told me that they enjoyed receiving this letter, while others thanked me as they copied some of my trades and profited. I’m grateful and in return decided to make a major … [Read more...]
Use O’Shaughnessy’s Screen To Find Value
Summary O'Shaughnessy's book "What Works on Wall Street" backtests single and multi-factor models. Rather than using a single factor (eg. P/E), you can improve performance by using O'Shaughnessy's composite model. This is an efficient way for an investor to generate investment ideas. An investor can overlay an additional model as a further filter such as Piotroski's … [Read more...]
A brief presentation of the Piotroski F-Score
In this article, I will briefly present the Piotroski F-Score and show the output from screening the Russell 3000. Joseph Piotroski received a B.S. in accounting from my alma mater, the University of Illinois in 1989. He worked as a senior tax associate at the firm Coopers & Lybrand before receiving an MBA from Indiana University in 1994, and a Ph.D. in accounting from … [Read more...]
Greece: What’s a Hellenic Republic to Do?
Sovereign and corporate balance sheet advisors are normally somewhat between discreet and secretive, partly so as not to draw too much attention to a client that may be struggling, but also because they don’t perceive it as appropriate to provide personal opinions about topics such as debt relief or to hog the limelight, in contrast with the proverbial corporate finance … [Read more...]
Newsletter – December 2014
“You listen good to I, because it's either education or elimination!” - Big Mama (Pearl Bailey), from the Fox and the Hound (1981) 2014 was another great year for the FatAlpha portfolio as it rose 30% vs 11% for the S&P 500. December closed up 0.86% while the market had a horrible New Year’s Eve resulting in a down month for the S&P at -0.42%. FatAlpha did it … [Read more...]
