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Super Charged Value Stocks
There are many investment styles used by professional money managers ranging from a go-go momentum approach to a more sedate, value methodology. Knowing which style is hot and concentrating on those types of stocks can be a rewarding experience. Although this sounds like a sound approach, it isn't easy to identify which style is in vogue and once it is recognized, typically the majority of the move has already occurred. Therefore, jumping from one style to another can be very frustrating. What makes more sense, is to stick with a proven approach, screen for buy candidates based on the fundamentals unique to the style and then use technical analysis to alert you when the time is right to get on board.
A very popular investment style among those who are seeking bargains in the market is called value investing. The value approach identifies companies that are trading at a discount to the market relative to its future earnings potential. Typically these companies have had a series of problems, which has caused them to fall out of favor. The trick when selecting these stocks is to identify company's whose problems were temporary, the core fundamentals of the company remain strong and the negative situation is turning around.
Market Edge screens its database of over 4300 stocks on a daily basis to isolate stocks that are considered to be value stocks. In order to qualify as a Market Edge 'Value Stock' the company must meet the following fundamental characteristics:
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