Value Investing

An Idea For Value Investors When the Market is High

Last night I was at the Towson University International Markets Summit.  I’m grateful to the students for inviting me, as it is an honor.  During the presentation, I mentioned the book “Accounting for Value” by Stephen Penman. I reviewed the book two years ago.  A great book, and one that should lead readers to modify their views on value investing.

But one aspect of the book was easy to implement, he cited his paper that you can read here, Returns to Buying Earnings and Book Value: Accounting for Growth and Risk.  Buy the stocks that are the cheapest as measured by the highest quintiles of book value to price, and trailing twelve month earnings per share to price.

I ran this analysis for all US-traded stocks with over $100 million of market capitalization.  Here are the results:

Petrobras Argentina SA ADRPZE0606 – Oil & Gas – IntegratedArgentina1.267.95
Pampa Energia S.A. (ADR)PAM1203 – Electric UtilitiesArgentina0.8311.41
OMV AG (ADR)OMVKY0609 – Oil & Gas OperationsAustria1.1311.33
Validus Holdings, Ltd.VR0709 – Insurance (Life)Bermuda113.3
Everest Re Group LtdRE0715 – Insurance (Property & Casualty)Bermuda0.8815.35
Maiden Holdings, Ltd.MHLD0715 – Insurance (Property & Casualty)Bermuda0.9310.11
Montpelier Re Holdings Ltd.MRH0715 – Insurance (Property & Casualty)Bermuda0.9911.83
Axis Capital Holdings LimitedAXS0715 – Insurance (Property & Casualty)Bermuda1.0113.2
Platinum Underwriters HoldingsPTP0715 – Insurance (Property & Casualty)Bermuda1.0211.25
White Mountains Insurance GrouWTM0715 – Insurance (Property & Casualty)Bermuda1.078.49
Aspen Insurance Holdings LimitAHL0715 – Insurance (Property & Casualty)Bermuda1.129.61
Assured Guaranty Ltd.AGO0715 – Insurance (Property & Casualty)Bermuda1.1818.59
Partnerre LtdPRE0715 – Insurance (Property & Casualty)Bermuda1.2310.75
Argo Group International HoldiAGII0715 – Insurance (Property & Casualty)Bermuda1.2711.55
Endurance Specialty Holdings LENH0715 – Insurance (Property & Casualty)Bermuda1.3112.55
Gerdau SA (ADR)GGB0121 – Iron & SteelBrazil1.326.84
Gafisa SA (ADR)GFA0215 – Construction ServicesBrazil2.0415.52
Petroleo Brasileiro PetrobrasPBR0606 – Oil & Gas – IntegratedBrazil1.6713.2
Telefonica Brasil SA (ADR)VIV0915 – Communications ServicesBrazil0.857.58
Companhia de Saneamento BasicoSBS1209 – Water UtilitiesBrazil0.898.57
Endeavour Silver CorpEXK0118 – Gold & SilverCanada0.899.9
Teck Resources Ltd (USA)TCK0124 – Metal MiningCanada1.336.84
TransGlobe Energy CorporationTGA0609 – Oil & Gas OperationsCanada0.8510.03
Granite Real Estate InvestmentGRP.U0933 – Real Estate OperationsCanada0.877.53
Brookfield Office Properties IBPO0933 – Real Estate OperationsCanada1.0810.08
Boardwalk REIT (USA)BOWFF0933 – Real Estate OperationsCanada1.1411.54
Greenlight Capital Re, Ltd.GLRE0715 – Insurance (Property & Casualty)Cayman Islands0.919.45
Sinopec Shanghai PetrochemicalSHI0103 – Chemical ManufacturingChina1.5211
Yongye International, IncYONG0103 – Chemical ManufacturingChina1.6543.36
China XD Plastics Co LtdCXDC0109 – Containters & PackagingChina1.1322.71
Lihua International IncLIWA0127 – Misc. Fabricated ProductsChina2.3141.21
Xinyuan Real Estate Co., Ltd.XIN0215 – Construction ServicesChina5.2242.83
China Automotive Systems, Inc.CAAS0415 – Auto & Truck PartsChina0.9911.04
China Petroleum & Chemical CorSNP0609 – Oil & Gas OperationsChina0.8710.11
Concord Medical Services HldgCCM0806 – Healthcare FacilitiesChina3.0612.45
China Telecom Corporation LimiCHA0915 – Communications ServicesChina1.177.03
Xueda Education Group (ADR)XUE0969 – SchoolsChina0.846.63
Changyou.Com Ltd (ADR)CYOU1018 – Computer ServicesChina1.2320.92
Nam Tai Electronics, Inc.NTE1024 – Electronic Instruments & ControlsChina1.1121.58
Jinpan International LimitedJST1024 – Electronic Instruments & ControlsChina1.713.36
Semiconductor Manufacturing InSMI1033 – SemiconductorsChina0.968.06
China Eastern Airlines Corp. LCEA1106 – AirlineChina1.0512.11
China Southern Airlines Co LtdZNH1106 – AirlineChina1.713.19
Guangshen Railway Co. Ltd (ADRGSH1112 – RailroadsChina1.346.64
Axa SA (ADR)AXAHY0709 – Insurance (Life)France1.199.46
Volkswagen AG (ADR)VLKAY0412 – Auto & Truck ManufacturersGermany0.949.73
Allianz SE (ADR)AZSEY0715 – Insurance (Property & Casualty)Germany0.9211.08
E.ON SE (ADR)EONGY1203 – Electric UtilitiesGermany1.288.17
National Bank of Greece (ADR)NBG0727 – Regional BanksGreece2131.03
Capital Product Partners L.P.CPLP1118 – Water TransportationGreece0.8310.36
Safe Bulkers, Inc.SB1118 – Water TransportationGreece0.8311.99
StealthGas Inc.GASS1118 – Water TransportationGreece1.329.08
Navios Maritime Holdings Inc.NM1118 – Water TransportationGreece1.3213.4
Sun Hung Kai Properties LimiteSUHJY0215 – Construction ServicesHong Kong1.4415.22
Hysan Development Company LimiHYSNY0215 – Construction ServicesHong Kong1.6620.18
Tai Cheung Holdings Ltd (ADR)TAICY0215 – Construction ServicesHong Kong2.1134.38
Le Gaga Holdings Ltd ADRGAGA0509 – CropsHong Kong1.5514.63
Bank of East Asia Ltd. (ADR),BKEAY0727 – Regional BanksHong Kong0.858.78
Iao Kun Group Holding Co LtdIKGH0912 – Casinos & GamingHong Kong1.3612.89
Cheung Kong (Holdings) LimitedCHEUY0933 – Real Estate OperationsHong Kong1.1611.07
Seaspan CorporationSSW1118 – Water TransportationHong Kong1.0515.2
Magyar Telekom Tavkozlesi NyrtMYTAY0915 – Communications ServicesHungary1.346.66
XL Group plcXL0715 – Insurance (Property & Casualty)Ireland1.1211.72
Fly Leasing Ltd(ADR)FLY0939 – Rental & LeasingIreland1.317.39
Ellomay Capital Ltd.ELLO1033 – SemiconductorsIsrael0.9310.95
FUJIFILM Holdings Corp. (ADR)FUJIY0112 – Fabricated Plastic & RubberJapan1.556.64
Kobe Steel, Ltd. (ADR)KBSTY0121 – Iron & SteelJapan1.4714.7
Mitsui & Co Ltd (ADR)MITSY0218 – Misc. Capital GoodsJapan1.3313.26
Wacoal Holdings Corporation (AWACLY0403 – Apparel/AccessoriesJapan1.457.14
Toyota Motor Corp (ADR)TM0412 – Auto & Truck ManufacturersJapan0.8210.5
Honda Motor Co Ltd (ADR)HMC0412 – Auto & Truck ManufacturersJapan0.927.61
Nissan Motor Co., Ltd. (ADR)NSANY0412 – Auto & Truck ManufacturersJapan1.1110.04
Nomura Holdings, Inc. (ADR)NMR0718 – Investment ServicesJapan1.0910.18
Mizuho Financial Group Inc. (AMFG0727 – Regional BanksJapan1.1314.9
Sumitomo Mitsui Financial Grp,SMFG0727 – Regional BanksJapan1.2816.67
Mitsubishi UFJ Financial GroupMTU0727 – Regional BanksJapan1.5313.67
Nippon Telegraph & Telephone CNTT0915 – Communications ServicesJapan1.398.93
ORIX Corporation (ADR)IX0939 – Rental & LeasingJapan0.987.59
Ternium S.A. (ADR)TX0121 – Iron & SteelLuxembourg0.897.61
ING Groep NV (ADR)ING0709 – Insurance (Life)Netherlands1.149.46
VimpelCom Ltd (ADR)VIP0915 – Communications ServicesNetherlands0.9313.67
ASM International NV (ADR)ASMI1033 – SemiconductorsNetherlands1.0174.95
Petroleum Geo-Services ASA (ADPGSVY0612 – Oil Well Services & EquipmentNorway0.819.85
Banco Latinoamericano Comerc EBLX0727 – Regional BanksPanama0.858.39
Compania de Minas BuenaventuraBVN0118 – Gold & SilverPeru1.1810.05
OFG BancorpOFG0727 – Regional BanksPuerto Rico0.9311.04
Popular IncBPOP0727 – Regional BanksPuerto Rico1.5219.77
Triple-S Management Corp.GTS0806 – Healthcare FacilitiesPuerto Rico1.7912.52
LUKOIL (ADR)LUKOY0606 – Oil & Gas – IntegratedRussian Federation1.9119.08
China Yuchai International LimCYD0218 – Misc. Capital GoodsSingapore1.215.34
Net 1 UEPS Technologies IncUEPS0703 – Consumer Financial ServicesSouth Africa0.916.79
POSCO (ADR)PKX0121 – Iron & SteelSouth Korea1.726.97
Shinhan Financial Group Co., LSHG0727 – Regional BanksSouth Korea1.248.42
Woori Finance Holdings Co., LtWF0727 – Regional BanksSouth Korea1.919.86
SK Telecom Co., Ltd. (ADR)SKM0915 – Communications ServicesSouth Korea0.8911.87
Repsol SA (ADR)REPYY0606 – Oil & Gas – IntegratedSpain1.067.93
Transocean LTDRIG0612 – Oil Well Services & EquipmentSwitzerland1.149.54
ACE LimitedACE0715 – Insurance (Property & Casualty)Switzerland0.8410.92
Allied World Assurance Co HoldAWH0715 – Insurance (Property & Casualty)Switzerland111.73
United Microelectronics Corp (UMC1033 – SemiconductorsTaiwan1.38.02
Silicon Motion Technology CorpSIMO1033 – SemiconductorsTaiwan1.9619.74
BP plc (ADR)BP0606 – Oil & Gas – IntegratedUnited Kingdom0.8515.1
Noble Corporation PLCNE0612 – Oil Well Services & EquipmentUnited Kingdom1.0810.05
Subsea 7 SA (ADR)SUBCY0612 – Oil Well Services & EquipmentUnited Kingdom1.097.02
ENSCO PLCESV0612 – Oil Well Services & EquipmentUnited Kingdom1.1112.2
Rowan Companies PLCRDC0612 – Oil Well Services & EquipmentUnited Kingdom1.36.71
HSBC Holdings plc (ADR)HSBC0727 – Regional BanksUnited Kingdom0.948.09
Vodafone Group Plc (ADR)VOD0915 – Communications ServicesUnited Kingdom1.4731.68
J Sainsbury plc (ADR)JSAIY0957 – Retail (Grocery)United Kingdom0.9610.57
Global Ship Lease, Inc.GSL1118 – Water TransportationUnited Kingdom2.1116.62
Cliffs Natural Resources IncCLF0124 – Metal MiningUnited States1.8712.76
M.D.C. Holdings, Inc.MDC0215 – Construction ServicesUnited States0.9123.28
M/I Homes IncMHO0215 – Construction ServicesUnited States0.9227.21
URS CorpURS0215 – Construction ServicesUnited States1.167.02
Mestek, Inc.MCCK0218 – Misc. Capital GoodsUnited States0.9811.53
General Motors CompanyGM0412 – Auto & Truck ManufacturersUnited States0.837.98
Rocky Brands IncRCKY0418 – FootwearUnited States1.216.82
Johnson Outdoors Inc.JOUT0430 – Recreational ProductsUnited States0.877.83
LeapFrog Enterprises, Inc.LF0430 – Recreational ProductsUnited States0.8917.58
Yasheng GroupHERB0509 – CropsUnited States11.7770.4
Seaboard CorporationSEB0515 – Food ProcessingUnited States0.826.77
John B. Sanfilippo & Son, Inc.JBSS0515 – Food ProcessingUnited States0.848.55
Omega Protein CorporationOME0515 – Food ProcessingUnited States1.0112.24
Ennis, Inc.EBF0518 – Office SuppliesUnited States0.928.43
ACCO Brands CorporationACCO0518 – Office SuppliesUnited States1.0111.07
Universal CorpUVV0524 – TobaccoUnited States0.9310.8
Hess Corp.HES0609 – Oil & Gas OperationsUnited States0.8612.86
Approach Resources Inc.AREX0609 – Oil & Gas OperationsUnited States0.939.48
Equal Energy Ltd. (USA)EQU0609 – Oil & Gas OperationsUnited States0.969.38
Sandridge Mississippian TrustSDT0609 – Oil & Gas OperationsUnited States1.4963.59
PHI Inc.PHII0612 – Oil Well Services & EquipmentUnited States0.858.96
Medallion Financial CorpTAXI0703 – Consumer Financial ServicesUnited States0.949.13
CIT Group Inc.CIT0703 – Consumer Financial ServicesUnited States0.967.26
Goldman Sachs Group IncGS0703 – Consumer Financial ServicesUnited States0.9710.16
Ellington Financial LLCEFC0703 – Consumer Financial ServicesUnited States1.0413.7
Walter Investment Management CWAC0703 – Consumer Financial ServicesUnited States1.1123.94
Chimera Investment CorporationCIM0703 – Consumer Financial ServicesUnited States1.1211.58
PHH CorporationPHH0703 – Consumer Financial ServicesUnited States1.199.68
EZCORP IncEZPW0703 – Consumer Financial ServicesUnited States1.587.55
WellPoint IncWLP0706 – Insurance (Accident & Health)United States0.899.52
Employers Holdings, Inc.EIG0706 – Insurance (Accident & Health)United States0.9310.46
Reinsurance Group of America IRGA0706 – Insurance (Accident & Health)United States1.087.49
American Equity Investment LifAEL0709 – Insurance (Life)United States0.8616.77
Protective Life Corp.PL0709 – Insurance (Life)United States0.929.76
FBL Financial GroupFFG0709 – Insurance (Life)United States0.969.73
Unum GroupUNM0709 – Insurance (Life)United States0.989.55
Assurant, Inc.AIZ0709 – Insurance (Life)United States19.67
Lincoln National CorporationLNC0709 – Insurance (Life)United States1.079.76
Symetra Financial CorporationSYA0709 – Insurance (Life)United States1.238.64
CNO Financial Group IncCNO0709 – Insurance (Life)United States1.2912.39
Imperial Holdings, Inc.IFT0709 – Insurance (Life)United States1.3837.03
National Western Life InsurancNWLI0709 – Insurance (Life)United States1.6310.85
Genworth Financial IncGNW0709 – Insurance (Life)United States1.726.87
Fortegra Financial CorpFRF0712 – Insurance (Miscellaneous)United States1.288.18
Allstate Corporation, TheALL0715 – Insurance (Property & Casualty)United States0.828.75
HCC Insurance Holdings, Inc.HCC0715 – Insurance (Property & Casualty)United States0.828.92
State Auto Financial CorpSTFC0715 – Insurance (Property & Casualty)United States0.836.92
Stewart Information Services CSTC0715 – Insurance (Property & Casualty)United States0.837.96
Safety Insurance Group, Inc.SAFT0715 – Insurance (Property & Casualty)United States0.847.39
Investors Title CompanyITIC0715 – Insurance (Property & Casualty)United States0.869.85
First American Financial CorpFAF0715 – Insurance (Property & Casualty)United States0.876.75
American Financial Group IncAFG0715 – Insurance (Property & Casualty)United States0.879.15
ProAssurance CorporationPRA0715 – Insurance (Property & Casualty)United States0.8710.86
Old Republic International CorORI0715 – Insurance (Property & Casualty)United States0.8810.53
Selective Insurance GroupSIGI0715 – Insurance (Property & Casualty)United States0.98.51
Horace Mann Educators CorporatHMN0715 – Insurance (Property & Casualty)United States0.919.6
Kemper CorpKMPR0715 – Insurance (Property & Casualty)United States0.959.64
Baldwin & Lyons IncBWINB0715 – Insurance (Property & Casualty)United States0.989.42
Hanover Insurance Group, Inc.,THG0715 – Insurance (Property & Casualty)United States0.999.44
Alleghany CorporationY0715 – Insurance (Property & Casualty)United States1.019.15
EMC Insurance Group Inc.EMCI0715 – Insurance (Property & Casualty)United States1.029.88
United Fire Group, Inc.UFCS0715 – Insurance (Property & Casualty)United States1.0510.3
Navigators Group, Inc, TheNAVG0715 – Insurance (Property & Casualty)United States1.097.68
Cna Financial CorpCNA0715 – Insurance (Property & Casualty)United States1.18.15
American International Group IAIG0715 – Insurance (Property & Casualty)United States1.3412
American National Insurance CoANAT0715 – Insurance (Property & Casualty)United States1.48.99
MBIA Inc.MBI0715 – Insurance (Property & Casualty)United States1.4510.86
FBR & CoFBRC0718 – Investment ServicesUnited States1.0329.21
KKR Financial Holdings LLCKFN0718 – Investment ServicesUnited States1.0511.24
NASDAQ OMX Group, Inc.NDAQ0718 – Investment ServicesUnited States1.136.66
Piper Jaffray CompaniesPJC0718 – Investment ServicesUnited States1.177.42
Primus Guaranty, Ltd.PRSG0718 – Investment ServicesUnited States1.2550.12
Arlington Asset Investment CorAI0718 – Investment ServicesUnited States1.2811.6
Oppenheimer Holdings Inc. (USAOPY0718 – Investment ServicesUnited States1.346.71
CIFC CorpCIFC0718 – Investment ServicesUnited States1.739.51
JPMorgan Chase & Co.JPM0724 – Money Center BanksUnited States0.987.39
First National Bank AlaskaFBAK0727 – Regional BanksUnited States0.816.61
Old National BancorpONB0727 – Regional BanksUnited States0.817
Sandy Spring Bancorp Inc.SASR0727 – Regional BanksUnited States0.817.28
TowneBankTOWN0727 – Regional BanksUnited States0.817.52
Fidelity Southern CorporationLION0727 – Regional BanksUnited States0.8110.35
Central Pacific Financial CorpCPF0727 – Regional BanksUnited States0.8121.18
Cascade BancorpCACB0727 – Regional BanksUnited States0.8122.18
LCNB Corp.LCNB0727 – Regional BanksUnited States0.826.69
S & T Bancorp IncSTBA0727 – Regional BanksUnited States0.837.38
Great Southern Bancorp, Inc.GSBC0727 – Regional BanksUnited States0.838.55
ESB Financial CorporationESBF0727 – Regional BanksUnited States0.846.88
WesBanco, Inc.WSBC0727 – Regional BanksUnited States0.847.15
Trustmark CorpTRMK0727 – Regional BanksUnited States0.847.28
KeyCorpKEY0727 – Regional BanksUnited States0.847.3
MidWestOne Financial Group, InMOFG0727 – Regional BanksUnited States0.848.77
Bar Harbor BanksharesBHB0727 – Regional BanksUnited States0.849.1
Seacoast Banking Corporation oSBCF0727 – Regional BanksUnited States0.8421.31
First Bancorp IncFNLC0727 – Regional BanksUnited States0.857.39
Mercantile Bank Corp.MBWM0727 – Regional BanksUnited States0.859.45
Heritage Financial Group IncHBOS0727 – Regional BanksUnited States0.867.23
MainSource Financial Group IncMSFG0727 – Regional BanksUnited States0.867.33
Norwood Financial CorporationNWFL0727 – Regional BanksUnited States0.867.9
Fulton Financial CorpFULT0727 – Regional BanksUnited States0.876.82
Pulaski Financial CorpPULB0727 – Regional BanksUnited States0.886.85
Washington Federal Inc.WAFD0727 – Regional BanksUnited States0.886.87
International Bancshares CorpIBOC0727 – Regional BanksUnited States0.897.93
Lakeland Bancorp, Inc.LBAI0727 – Regional BanksUnited States0.96.84
Northrim BanCorp, Inc.NRIM0727 – Regional BanksUnited States0.97.67
BCB Bancorp, Inc.BCBP0727 – Regional BanksUnited States0.97.91
ACNB CorporationACNB0727 – Regional BanksUnited States0.98.14
Intermountain Community BancorIMCB0727 – Regional BanksUnited States0.99.74
First Financial CorpTHFF0727 – Regional BanksUnited States0.917.44
Farmers & Merchants Bancorp InFMAO0727 – Regional BanksUnited States0.917.8
Southeastern Bank Financial CoSBFC0727 – Regional BanksUnited States0.9111.29
Isabella Bank CorpISBA0727 – Regional BanksUnited States0.926.95
First Merchants CorporationFRME0727 – Regional BanksUnited States0.936.76
Wintrust Financial CorpWTFC0727 – Regional BanksUnited States0.937.12
First Citizens BancShares Inc.FCNCA0727 – Regional BanksUnited States0.947.57
Firstbank CorporationFBMI0727 – Regional BanksUnited States0.948.03
Century Bancorp, Inc.CNBKA0727 – Regional BanksUnited States0.9510.72
Central Valley Community BancoCVCY0727 – Regional BanksUnited States0.966.62
PNC Financial Services Group IPNC0727 – Regional BanksUnited States0.968.94
American National BankShares IAMNB0727 – Regional BanksUnited States0.969.01
Capital One Financial Corp.COF0727 – Regional BanksUnited States0.979.95
Provident Financial Services,PFS0727 – Regional BanksUnited States0.996.92
NASB Financial, Inc.NASB0727 – Regional BanksUnited States0.9911
Flagstar Bancorp IncFBC0727 – Regional BanksUnited States1.0121.87
First Defiance FinancialFDEF0727 – Regional BanksUnited States1.028.35
MidSouth Bancorp, Inc.MSL0727 – Regional BanksUnited States1.036.96
C&F Financial CorpCFFI0727 – Regional BanksUnited States1.0413.4
First Community Bancshares IncFCBC0727 – Regional BanksUnited States1.057.25
Provident Financial Holdings,PROV0727 – Regional BanksUnited States1.058.78
Chemung Financial Corp.CHMG0727 – Regional BanksUnited States1.066.7
Territorial Bancorp IncTBNK0727 – Regional BanksUnited States1.087.23
Berkshire Hills Bancorp, Inc.BHLB0727 – Regional BanksUnited States1.096.61
Regions Financial CorporationRF0727 – Regional BanksUnited States1.097.73
Old Second Bancorp Inc.OSBC0727 – Regional BanksUnited States1.1113.32
Farmers Capital Bank CorpFFKT0727 – Regional BanksUnited States1.147.7
Premier Financial Bancorp, IncPFBI0727 – Regional BanksUnited States1.1810.46
FIRST FINANCIAL NORTHWEST, INCFFNW0727 – Regional BanksUnited States1.1814.46
Intervest Bancshares CorpIBCA0727 – Regional BanksUnited States1.198.37
MBT Financial Corp.MBTF0727 – Regional BanksUnited States1.2328.89
New Hampshire Thrift BancshareNHTB0727 – Regional BanksUnited States1.267.66
MVB Financial CorpMVBF0727 – Regional BanksUnited States1.2910.03
Citigroup IncC0727 – Regional BanksUnited States1.38.73
Susquehanna Bancshares IncSUSQ0727 – Regional BanksUnited States1.318.42
QCR Holdings, Inc.QCRH0727 – Regional BanksUnited States1.4412.41
First Niagara Financial GroupFNFG0727 – Regional BanksUnited States1.458.28
First Citizens Bancorporation,FCBN0727 – Regional BanksUnited States1.59.95
Farmers & Merchants Bank (LongFMBL0909 – Business ServicesUnited States0.988.05
Kelly Services, Inc.KELYA0909 – Business ServicesUnited States1.027.21
Lakes Entertainment, Inc.LACO0912 – Casinos & GamingUnited States1.0114.29
Black Box CorporationBBOX0915 – Communications ServicesUnited States1.387.36
Iridium Communications Inc.IRDM0915 – Communications ServicesUnited States1.7210.16
Courier CorporationCRRC0927 – Printing & PublishingUnited States0.866.72
CSS Industries IncCSS0927 – Printing & PublishingUnited States1.087.53
Blackstone Mortgage Trust IncBXMT0933 – Real Estate OperationsUnited States0.87145.18
New York Mortgage Trust IncNYMT0933 – Real Estate OperationsUnited States0.8814.44
PennyMac Mortgage Investment TPMT0933 – Real Estate OperationsUnited States0.8913.15
Starwood Property Trust, Inc.STWD0933 – Real Estate OperationsUnited States0.947.84
Capstead Mortgage CorporationCMO0933 – Real Estate OperationsUnited States0.997.31
Dynex Capital IncDX0933 – Real Estate OperationsUnited States1.0212.82
Two Harbors Investment CorpTWO0933 – Real Estate OperationsUnited States1.0416.24
American Capital Agency Corp.AGNC0933 – Real Estate OperationsUnited States1.0514.81
Apollo Commercial Real Est. FiARI0933 – Real Estate OperationsUnited States1.097.4
MFA Financial, Inc.MFA0933 – Real Estate OperationsUnited States1.099.89
Anworth Mortgage Asset CorporaANH0933 – Real Estate OperationsUnited States1.19.07
Resource Capital Corp.RSO0933 – Real Estate OperationsUnited States1.169.91
Rent-A-Center IncRCII0939 – Rental & LeasingUnited States0.978.84
Willis Lease Finance CorporatiWLFC0939 – Rental & LeasingUnited States1.319.51
Biglari Holdings IncBH0942 – RestaurantsUnited States0.8323.81
Rick’s Cabaret Int’l, IncRICK0942 – RestaurantsUnited States0.928.66
PCM IncPCMI0948 – Retail (Catalog & Mail Order)United States1.097.11
Trans World Entertainment CorpTWMC0963 – Retail (Specialty Non-Apparel)United States1.687.37
TravelCenters of America LLCTA0963 – Retail (Specialty Non-Apparel)United States1.767.55
Tech Data CorpTECD0966 – Retail (Technology)United States0.877.43
hhgregg, Inc.HGG0966 – Retail (Technology)United States1.326.67
Ingram Micro Inc.IM1015 – Computer PeripheralsUnited States0.846.68
Key Tronic CorporationKTCC1015 – Computer PeripheralsUnited States0.939.42
Xerox CorpXRX1018 – Computer ServicesUnited States0.898.31
VOXX International CorpVOXX1024 – Electronic Instruments & ControlsUnited States1.5710.96
OmniVision Technologies, Inc.OVTI1033 – SemiconductorsUnited States0.918.46
Benchmark Electronics, Inc.BHE1033 – SemiconductorsUnited States19
JetBlue Airways CorporationJBLU1106 – AirlineUnited States0.856.84
Republic Airways Holdings Inc.RJET1106 – AirlineUnited States1.4212.1
SkyWest, Inc.SKYW1106 – AirlineUnited States2.198.93
Atlas Air Worldwide Holdings,AAWW1109 – Misc. TransportationUnited States1.4910.44
International Shipholding CorpISH1118 – Water TransportationUnited States1.677.41
Gas Natural IncEGAS1206 – Natural Gas UtilitiesUnited States0.896.75

What are my surprises here?

  • My but there are a lot of foreign companies in this list, far more as a percentage than the 3575 total companies I started with.  It seems that foreign companies are cheap.
  • Now, that said, accounting standards are tighter in the US than elsewhere, and particularly, be careful on Chinese companies.  Many of them are scams.
  • There are a lot of financial companies listed.  I would note that earnings quality for financial companies is often poor, so don’t go “hog wild” buying financial companies.

All that said, this could be a good list for starting due diligence, and I will use at least some of this in my next selection of companies for my clients.

What’s that, you say?  Do I and my clients own any of these firms?  Yes we do.  Of the 38 stocks in my portfolio, 11 of them pass this screen, and here is the summary:

Full Disclosure: Long ENH, SNP, GTS, LUKOY, BP, ESV, RGA, AIZ, NWLI, IM, XRX


By David Merkel, CFA of alephblog