Professional Documents
Culture Documents
Only use it when Strategies are back Due to popular demand I have removed the company description in the portfolio tables at the end of the newsletter and replaced it with the screener strategy I used to select the company. Do you know all the order types? I am sure, especially if you use an internet based stock broker, you have seen or used some of the different types of orders you can choose from. But do you know what they all mean? And do you know that they can also increase your returns by giving you a lower purchase and a higher selling price? Below is a quick overview of the different order types and how you can optimally use them. Easy to understand Even though the terms may sound odd at first dont worry they are all very easy to understand once you have worked through an example.
December 2013
high compared to what is traded at the time (for example with some of the smaller companies recommended in the newsletter).
You should thus use this type of order only when you desperately want to buy or sell a security regardless of the price or if your order volume is small compared to the volume traded in the market. Gives you no control A market order gives you as the buyer or seller no control over the price but it will ensure that your order gets executed if there is enough volume to do so. I only use market orders when buying very large market value companies, where the amount of shares I want to trade is only a small fraction of the daily volume. Low cost as easy to execute In terms of brokerage costs market orders are the most inexpensive type of orders you can place because your broker does not have to go to much trouble to get them executed.
Limit Orders Market Order This is the simplest and the quickest order to execute. When you give a market order your broker will sell or buy a stock at the current market price, whatever it may be. Depending on the market conditions, your order may not always get executed at the price you think it will. For example, if there is a lot of volume traded, you may get a price close to the last price when you give your order. Be careful Be careful though as market orders may move the stock price substantially if the volume of your order is These types of orders are as popular as market orders; however, they have a major advantage because they let you control the price at which the order is executed. As the name suggests, with a limit order, you tell your broker to buy or sell the security at a maximum or minimum price. Only be executed when The order will only be executed if the price is within the limit you have set. For example, if you set a buy limit order for 50 but the current market price of the stock is at 60, the order will not be executed unless the price drops by 10 to 50. Control your buy and sell price
Newsletter
Limit orders can thus be used to control the buy and sell prices of your investment. May cost a bit more worth it Note that you may need to pay a slightly higher commission when you place a limit order. But if the volume traded in the company is low it is always worthwhile. But your order may not be executed But you must remember that with a limit order your order may not get executed is the price you set is not reached. For example you set a sell limit order at 40 and the current price of the stock is 30. If the price does not reach the limit you set or higher, your order will not be executed. Similarly a buy limit order will only be executed at the limit price or lower. Limit order variations It is also possible to further restrain buy and sell limit orders. This can be done with a FOK (Fill or Kill) and an AON (All or None) orders. Execute or cancelled When you place a FOK limit order, it will either be executed in full or cancelled (executed in full here means buy the number of shares you ordered). All or nothing On the other hand an AON limit order will only be executed in full. This means that you will either buy or sell the complete number of shares you ordered or the order will not be executed. If the order cannot be executed it will not be cancelled (as is the case with a FOK order) but will be held for later execution up to the date of the orders expiry. Use AON when
December 2013
The AON is a very good type of order to use when you are buying or selling illiquid shares (as some of the small companies the newsletter recommends). It will avoid multiple transactions of a small number of shares that can be very expensive in terms of brokerage. Not always available Unfortunately this type of order is not available from all brokers and at all stock exchanges.
Stop or Stop Loss Orders Stop orders can be placed when you are buying or selling shares. Used to limit losses They are used to either buy a share or sell if a certain price is exceeded. They are however mainly used to limit your losses by protecting you from a big drop in the price of a stock. With a stop loss order, you tell your broker to sell a share if it falls below a certain price. Below the market price Stop loss orders are generally set below the current market price. Which means if the price later falls to this price, the broker will execute your stop loss order. For example you own a share, currently trading at 40 per share and want to limit your losses by selling it if the price falls to 30. You would then place a stop loss order at 30. This means as soon as the share price falls to 30 your broker will automatically sell the share. Important - Becomes a market order Its important for you to keep in mind that when triggered your stop loss order becomes a market order and it will be executed at the current market price. For example when you use a sell stop loss order, you are instructing your broker to sell the security at the best available price when the stop price has been reached (see Market Orders above).
Newsletter
If the price of a stock stays above the stop price you set the stop loss order will not be executed. Alternatively, you can also use the buy stop order (below the current market price) to take advantage of a declining market so you can buy a stock once a certain lower price has been reached. Stop limit order This type of order combines the features of a limit as well as a stop order. When stop is reached limit order triggered Once the stop price is reached; instead of a market order (like in case of normal stop orders), the stop limit order turns into a limit order. This means that the security is bought or sold at no more or less than your specified limit price. This type of order is a good choice when placing stop loss orders for illiquid shares. But may not be executed Be careful if you want to use this type of order to limit losses, because if the stock price has fallen enough to exceed your stop price it may also have fallen past your limit price. This means your stop limit order will not be executed.
December 2013
you specified, the trailing stop order will become a market order (see market order above) and will be executed. On the other hand, if the price continues to rise the trailing order will follow it and allow you to participate in further gains. Trailing stop limit order This type of an order combines the features of both the trailing order and the limit order. Instead of becoming a market order when triggered a trailing stop limit order becomes a limit order (see limit order above).
Day order You would use this type of order if you want to only have your order to be valid for one day. Your order will thus be cancelled when the market closes.
Good Till-Cancelled-Order (GTC) This type of an order can theoretically be in force indefinitely; however your broker may set a limit on such orders for example 90 days. As the name suggests, these orders are in effect until you cancel it.
Trailing Orders or Trailing Stop Orders Like the name suggest, a trailing order is essentially a stop order where the stop price is not fixed.
Immediate-or-cancel order (IOC) Stop price a percentage change A trailing stop order is thus similar to the regular stop orders but the stop price which is set as a percentage change from the price of a security. This means if the price of a share were to fall by 10%, the order will be triggered. A trailing stop order can thus be very effectively used to protect your profits. If you have a profit on a position you can use the trailing order to follow the price of the security. If the market value of the stock declines by a percentage This type of order is either executed immediately or cancelled. However, unlike fill or kill orders an IOC order can be partially executed.
Market on Close and Market on Open (MOC & MOO) These types of orders will ensure that you get the open or close price (or close to it) respectively on the day for which you place the order.
Newsletter
Europe Sell two One cancels the other order (OCO) This type of order is used if you have two orders in the market but you only want one of them to be executed. The execution of the one order will automatically cancel the other order. Here is an example. If you are invested in Microsoft at $20 a typical OCO order would be a stop loss order at $15 and a sell limit order to take a profit at $27. If one of the orders is executed, the other is automatically cancelled.
December 2013
Sell Creston (+24.1%) and Picanol (+26.0%) both recommended a year as they are not in the investment model. North America Hold two Continue to hold Gamestop (+84.2%) and Harris Corporation (+37.6%) as they are also both still in the investment model.
Year to date performance European portfolio year to date +48.5% In spite of the European markets also increasing nicely (STOXX Europe 600 Index is up 16.6%) the European portfolio has done very well and is up 48.5% (excluding dividends) so far. North American portfolio year to date +37.4% The North American portfolio is also doing well and is up 37.4% so far this year (S&P 500 up 26.6%).
As you can see that are a lot of order types what give you quite a lot of opportunities to limit losses, lock in gains and give you a better buy or sell price. The first step you should take is to look at what order types your broker offers and how they are defined. This is important as the exact nature of an order may differ slightly from broker to broker. Once you have learned what is available start using them to your advantage.
Now for this month's recommendations. This month's ideas In Europe I am recommending two French based companies. The one is engaged in the perfume and cosmetics business and the other provides software, computer aided design (CAD)/computer aided manufacturing (CAM) equipment. In North America I have found a diversified manufacturer of engineered industrial products and a Canada-based company that provides pipeline and facility construction and maintenance services to oil and gas companies.
Interparfums SA Europe
At the end of 2012, the company employed 205 people across its offices in France, Europe, North America and Asia. Valuation Metrics
Source: Reuters EBIT/Assets EBIT/EV Dividend Yield (TTM*) Price to Earnings (TTM*) EV to Free Cash Flow Price to Book Price to Sales *TTM = Trailing 12 months 78.2% 41.1% 1.56% 4.9 3.5 2.1 1.6
Executive Summary
Recommendation Buy Recent Price (Closing price on 29.12.2013 31.47 Paris Stock Exchange) Security No. (ISIN) FR0004024222 Reporting Currency Euro Market Capitalisation 761.6 million Company Location France Main Exchange Paris Shares outstanding 24.2 million Average daily volume (last 10 days) 19 280 52 week range 19.91 to 32.00 Insider ownership 34% Fiscal year end December Suggested portfolio weighting 2% Disclosure I have a position Source: Financial Times, www.4-traders.com and company website
Recent results In the third quarter (Q3) like-for-like sales increased 33.5% to 74.2 million in the third quarter of 2013 compared to 55.6 million during the same period in 2012. The increase was driven by strong growth of Montblanc (+48%) and Jimmy Choo (+47%) fragrances and successful launches of Repetto fragrance and Boucheron Place Vendme eau de perfume. Including Burberry brand sales, however, this was a decline of 37.6% compared to 118.9 million in the third quarter of 2012. For the first nine months of 2013, like-for-like sales increased 20.1% to 193.8 million from 161.3 million the previous year. For the half year to June 2013 (no profits reported in Q3) operating profits increased 87% to 54.7m, net profit before tax was up 94% and earnings per share up 70% due to the higher sales mentioned above and lower advertising expenses. Numbers include Burberry sales up to March 2013; profits excluding Burberry were not given. Outlook - 2013 Due to the expansion of its brand portfolio, especially Montblanc and Jimmy Choo; management expects total 2013 sales to reach 340 to 345 million (2012: 445 million). Summary and Conclusion Interparfums is an undervalued French cosmetics company with good price momentum. Further Reading Company Website Investor Relations Annual Reports Financial Times Summary
Description Interparfums SA (Interparfums) is a French company that is engaged in the perfume and cosmetics business. The company manufactures and distributes perfumes through license agreements with brands in the ready-to-wear, high fashion, jewellery, and accessories sectors. The company for example offers products under the Balmain, Boucheron, Jimmy Choo, Karl Lagerfeld, Lanvin, Montblanc, Nickel, Paul Smith, Repetto, S.T. Dupont, and Van Cleef & Arpels brand names. Interparfums sells mainly perfumes (98.2% of 2012 sales); and sales by geographic segment for 2012 were as follows: North America 23.0% South America 8.0% Asia 16.4% Eastern Europe 8.6% Western Europe 24.4% France 7.9% Middle East 10.5% Africa 1.2%
In July 2012, British luxury brand Burberry paid Interparfums 181m to terminate its nearly 20-year partnership with the company.
Lectra SA Europe
Source: Annual report, Financial Times, Reuters and company website.
Recent results Sales increased 11% to 50.8 million in the third quarter (Q3) of 2013 compared to 47.8 million during the same period the previous year. The increase was driven by growth in both new systems sales and recurring sales. Income from operations in Q3 amounted to 6.1 million, up 32% as a result of the natural drop in overhead costs over the summer vacation months. Net income was up 12% to 4.2 million in the third quarter of 2013 and earnings per share increased 15% to 0.15 per share compared to 0.13 per share, the previous year. For the first nine months of 2013, sales increased 2% to 150 million. Income from operations decreased 7% to 23.2 million and net income decreased 9.3% due to a major recruitment plan to strengthen sales and marketing. The above numbers do not include a non-recurring receipt of 11.1 million due to the end of litigation against a competitor. If it is included earnings per share increased 91% to 0.65 per share. Outlook Management said that forecasting remains difficult in the current economic climate and is cautious with regards the orders and sales from new systems for Q4. Also the increase in overhead costs resulting from the acceleration of the transformation plan and the unfavourable development of the euro/dollar exchange rate will have an impact on profits. In spite of this the company expects income from operations before non-recurring items to exceed 15 million (19.8 in 2012). Summary and Conclusion Lectra is a nicely undervalued French CAD/CAM company with good share price momentum. Further Reading Company Website Investor Relations Annual Reports Financial Times Summary
Source: Reuters
Executive Summary
Recommendation Recent Price (Closing price on 29.12.2013 Paris Stock Exchange) Security No. (ISIN) Currency Market Cap Company Location Main Exchange Shares outstanding Average daily volume (last 10 days) 52 week range Insider ownership Fiscal year end Suggested portfolio weighting Buy 7.37 FR0000065484 Euro 214.7 million France Paris 29.13 million 25 330 4.59 to 7.50 38% December 2%
Disclosure I have a position Source: Financial Times, www.4-traders.com and company website
Description Lectra SA (Lectra) is a France-based company that provides software, computer aided design (CAD) and computer aided manufacturing (CAM) equipment, and related services for industries using fabrics, leather, textiles, and composite materials. Lectra serves large corporations and medium-sized companies in the fashion, automotive, and furniture markets, as well as in the aeronautical, marine, and wind power industries. The company reports its business operations in the following geographical segments: Europe (47.3% of 2012 sales) Americas (25.3% of 2012 sales) Asia-Pacific (21.1% of 2012 sales) Other countries(6.3% of 2012 sales)
At the end of September 2013, the company had more than 1,400 employees worldwide. Valuation Metrics
EBIT/Assets EBIT/EV Dividend Yield (TTM*) Price to Earnings (TTM*) EV to Free Cash Flow Price to Book Price to Sales *TTM = Trailing 12 months 60.7% 10.0% 3.0% 9.9 17.5 3.3 1.1
Kasco Blades and Route Repair Services (Kasco) (8.7% of sales and 5.7% of operating income) Provides meat-room blade products, repair services and resale products for the meat processing industry.
Source: Reuters
At the end of December 2012, HNH employed more than 1,600 people at 33 locations in eight countries. Executive Summary
Buy $24.53 HNH US Dollar $323.5 million USA NASDAQ 13.2 million 34 450 $13.71 to $25.19 5.2% December 2%
Recommendation Recent Price (Closing price on 29.12.2013 NASDAQ) Stock Symbol Currency Market Cap Company Location Main Exchange Shares outstanding Average daily volume (last 10 days) 52 week range Insider ownership Fiscal year end Suggested portfolio weighting
Valuation Metrics
EBIT/Assets EBIT/EV Dividend Yield (TTM*) Price to Earnings (TTM*) EV Free Cash Flow Price to Book Price to Sales *TTM = Trailing 12 months Source: Annual report, Financial Times, Reuters and company website. 25.6% 11.3% 0.0% 19.3 12.3 6.2 0.5
Recent results For the nine months to September 2013 the company reported a 10.9% increase in net sales to $502.9 million driven by a strong sales growth across all of its business segments except Arlon. Operating income amounted to $45.4 million up 6.3% from the $42.7 generated during the previous year period. And net income of $29.5 million up by 34.4% from the $22.0 million achieved during the same period in 2012. Earnings per share grew 31.4% to $2.22 per share from $1.69 per share. The increase was due to higher profits from three businesses sold in 2013. Outlook Based on current results, the company expects full year 2013 sales to be in the range of $637 million to $667 million (2012: $629 million), and adjusted EBITDA to be in the range of $76 million to $82 million (2012: $74 million). Summary and Conclusion HNH is an undervalued US engineering company with good share price momentum. Further Reading Company Website Investor relations Annual Reports Financial Times Summary
Disclosure I have no position Source: Financial Times, www.4-traders.com and company website
Description Handy & Harman Ltd. (HNH) is a manufacturer of engineered industrial products in the United States and internationally. The company serves a diverse customer base from the construction, electronics, telecommunications, home appliance, transportation, utility, medical, semiconductor, aerospace, and aviation industries. HNH reports its operations under the following business segments: (Sales and operating income shown for 2012) Joining Materials (27.7% of sales and 30.5% of operating income) Tubing (15.4% of sales and 18.8% of operating income) Engineered Materials (35.4% of sales and 30.3% of operating income) Arlon Electronic Materials (Arlon) (12.8% of sales and 14.7% of operating income) Provides high performance materials for the printed circuit board (PCB) industry and silicone rubberbased insulation materials.
Executive Summary
Recommendation Recent Price (Closing price on 29.12.2013 TSXV) Stock Symbol Currency Market Cap Company Location Main Exchange Shares outstanding Average daily volume (last 10 days) 52 week range Insider ownership Fiscal year end Suggested portfolio weighting Disclosure Source: Financial Times, Euronext Yahoo Finance Buy CAD 6.69 MCR Canadian Dollar CAD 199.3 million Canada Toronto 29.8 million 52 190 CAD 0.76 to CAD 7.35 32% December 2% I have no position company website,
Recent results The company reported a 39.9% increase in sales to CAD 97.4 million in the first six months of 2013 compared to CAD 69.6 million during the prior year period. The increase was due to strong growth in sales from six larger facility and pipeline projects as well as maintenance and pipeline integrity work for three other customers. Pre-tax income increased 93.5% to CAD 20.7 million from CAD 10.7 million during the period, benefited from a decline in operating expenses due to improved bid margins and a higher percentage of non fixed-price work. Net income increased 96.4% to CAD 15.4 million from CAD 7.8 million, while basic earnings per share increased 90.6% to $0.61 from $0.32. Outlook The company expects sales in the third quarter to be higher than the previous year period, after taking into account the expected sales from its November 2012 acquisition. The management is also encouraged by the prospect of significant pipeline infrastructure projects in British Columbia and Alberta. Summary and Conclusion MCR is an undervalued Canadian pipeline construction and maintenance company with good share price momentum. Further Reading Company Website Investor relations Annual Reports Financial Times Summary
and
Description Macro Enterprises Inc. (MCR) is a Canada-based company that provides pipeline and facility construction and maintenance services to oil and gas companies in north eastern British Columbia and north western Alberta. The company involved in the construction, alteration, repair, and installation of pipeline and facility pressure piping and structural steel. MCR operates through three operating divisions: Macro Industries Pipeline construction, facilities construction and compressor stations; Tracer Industries Insulating, ductwork, and metal frame building construction products and services to the oil and gas installations, and Omineca Oil Services Facilities maintenance services to the oil and gas installations located in the northern British Columbia region
The company does not report operations separately and publishes its financial results as one business segment. In November 2012, MCR completed the acquisition of the pipeline construction and maintenance business
Dividend
Return
Strategy
Reply
Milan
IT0001499679
08.11.11
16.08
52.60
1.07
Cegedim
Paris
FR0000053506
07.06.12
23.10
20.85
0.00
- 9.7 %
Impellam Group
London
GB00B2Q2M073
07.06.12
360.00
370.00
0.52
+ 2.9 %
Viscom
Xetra
DE0007846867
02.07.12
7.75
12.27
0.60
+ 66.1 %
Huntsworth
London
GB00B0CRWK29
07.08.12
44.00
69.00
4.50
+ 67.0 %
Trinity Mirror
London
GB0009039941
09.10.12
63.50
180.00
0.00
+ 183.5 %
Harvey Nash
London
GB0006573546
09.01.13
64.10
96.00
3.03
+ 54.5 %
St Ives
London
GB0007689002
09.01.13
122.00
177.25
6.50
+ 50.6 %
Dart Group
London
GB00B1722W11
01.02.13
149.52
229.15
1.33
+ 54.1 %
U10
France
FR0000079147
01.02.13
2.73
3.40
0.00
+ 24.5 %
Corticeira Amorim
Portugal
PTCOR0AE0006
28.02.13
2.07
2.30
0.10
+ 15.9 %
Axway Software
France
FR0011040500
28.03.13
14.72
23.60
0.35
+ 62.7 %
Staffline Group
London
GB00B040L800
28.03.13
396.00
560.00
8.80
+ 43.6 %
Dividend
Return
Strategy
Indesit Company
Milan
IT0000076197
30.04.13
5.97
9.18
0.20
+ 57.0 %
MGI Coutier
France
FR0000053027
30.05.13
46.00
95.00
0.50
+ 107.6 %
Montupet
France
FR0000037046
30.05.13
16.50
35.49
0.60
+ 118.7 %
Eniro
Stockholm
SE0000718017
28.06.13
18.45
37.25
0.00
+ 101.9 %
Fairpoint Group
London
GB0032360280
28.06.13
104.31
132.00
2.15
+ 28.6 %
Kardex
Switzerland
CH0100837282
31.07.13
36.95
40.55
4.00
+ 20.6 %
FR0000074122
31.07.13
5.45
6.42
0.07
+ 19.1 %
Burelle
France
FR0000061137
28.08.13
421.00
624.00
0.00
+ 48.2 %
Tesmec
Milan
IT0004585243
28.08.13
0.74
0.78
0.00
+ 6.0 %
La Doria
Milan
IT0001055521
30.09.13
2.94
3.94
0.00
+ 34.1 %
Le Belier
Paris
FR0000072399
30.09.13
14.75
18.50
0.00
+ 25.4 %
Cegid Group
Paris
FR0000124703
31.10.13
21.49
23.00
0.00
+ 7.0 %
Norbert Dentressangle
Paris
FR0000052870
31.10.13
83.50
88.00
0.00
+ 5.4 %
10
Dividend
Return
Strategy
Lectra SA
Paris
FR0000065484
29.11.13
7.37
7.37
0.00
+ 0.0 %
Average Return
+ 53.2 %
Disclosure: I have an investment in all of the Europe Recommended Buy companies except Cegedim, Impellam, Viscom, Trinity Mirror, Harvey Nash, St. Ives, Dart Group, U10, Corticeira Amorim, Staffline Group, Advances Digital, Indesit, Montupet, Fairpoint, Kardex, SII, Tesmec and Le Belier.
11
ISIN
NL0000350361
Return %
+ 27.8 %
Strategy
2.02 08.07.11
Magic Formula (5yr avg. EBIT) & Piotroski F-Score Piotroski (low P/B with high F-Score) Magic Formula (1yr) & Piotroski F-Score
NL0000345452
10.07.10
7.05
08.07.11
5.39
- 23.5 %
FR0010436584
10.08.10
28.50
2.17 09.08.11
16.16
- 35.7 %
CH0006539198
10.08.10
3.85
0.17 09.08.11
3.65
Magic Formula (1&5yr - 0.8 % avg. EBIT) & Piotroski FScore - 20.9 % Magic Formula Europe & 8 Piotroski F-Score
Cegid Group
FR0000124703
10.10.10
21.58
1.05 07.10.11
16.03
Gevelot
FR0000033888
10.10.10
36.49
1.80 07.10.11
53.00
Piotroski (low P/B of + 50.2 % 29%with high F-Score of 9) - 22.2 % Magic Formula (1yr) & 8 Piotroski F-Score
US3596781092
10.11.10
3.69
08.11.11
2.87
MGI Coutier
FR000 0053027
10.12.10
31.15
0.50 30.12.99
34.31
Magic Formula & ERP5 + 11.7 % (1yr) & 8.5 Piotroski FScore + 15.1 % ERP5 best Selection & 8 Piotroski F-Score ERP5 best Selection & 7 Piotroski F-Score ERP5 best Selection & 7 Piotroski F-Score ERP5 best Selection & 8,5 Piotroski F-Score
Tessi SA
FR0004529147
10.01.11
62.87
2.00 09.01.12
70.39
GFI Informatique SA
FR0004038099
10.02.11
3.42
0.22 09.02.12
2.81
- 11.4 %
Haynes Publishing
GB0004160833
10.03.11
234.00
15.70 03.07.12
220.00
+ 0.7 %
Securidev
FR0000052839
10.03.11
26.89
1.50 03.07.12
35.99
+ 39.4 %
Creston
GB000 4440284
10.05.11
96.00
6.41 09.05.12
66.00
ERP5 best Selection UK, - 24.6 % Magic Formula & F-Score 7 ERP5 best Selection UK, - 17.7 % Magic Formula & 8,0 FScore 7 Magic Formula (5yr avg. + 77.7 % EBIT), ERP5BS & F-Score 8 + 52.5 % ERP5 best Selection UK & 7.5 Piotroski F-Score
Cello Group
GB00B0310763
10.06.11
42.00
0.55 07.06.12
34.00
Buongiorno SpA
IT0001488607
30.12.99
1.12
07.06.12
1.99
Molins
GB000 5991111
09.08.11
79.00
2.50 09.08.12
118.00
Trilogiq
FR0010397901
09.08.11
14.15
09.08.12
14.52
ERP5 best Selection + 2.6 % Europe, Magic Formula & 7.5 F-Score + 55.4 % Magic Formula (1yr) & 7 Piotroski F-Score
07.06.12
3.05
0.24 07.08.12
4.50
M&C Saatchi
GB00B 01F7T14
10.09.10
106.00
4.90 07.08.12
151.50
12
ISIN
GB0002925955
Return %
- 22.9 %
Strategy
15.06 07.08.12
Micropole
FR0000077570
08.09.11
1.21
07.08.12
1.04
ERP5 best Selection - 14.0 % Europe, Magic Formula & F-Score 7.5 ERP5 best Selection UK, - 17.3 % Magic Formula & 8 FScore 6 month price index + 34.5 % sorted by ERP5 & 5 Piotroski F-Score + 38.4 % Magic formula Europe, & F-Score 7.5
Logica
GB0005227086
08.07.11
132.30
4.40 09.09.12
105.00
LaCie SA
FR0000054314
10.02.11
3.59
0.33 09.10.12
4.50
Amadeus Fire
DE0005093108
08.11.11
27.80
2.84 08.11.12
35.64
William Hill
GB0031698896
10.12.10
167.00
18.80 06.12.12
345.40
Magic Formula & ERP5 + 118.1 % (1yr) & 8 Piotroski FScore + 57.6 % ERP5 relative strength Europe, 7,5 F-Score
freenet
DE000A0Z2ZZ5
30.11.11
9.80
0.80 06.12.12
14.64
Groupe Crit
FR0000036657
30.11.11
10.98
0.22 06.12.12
13.65
ERP5 best Selection + 26.3 % Europe, Magic Formula & 7 F-Score + 17.7 % ERP5 Best selection UK, 7 Piotroski F-Score
Phoenix IT Group
GB00B0315W65
09.01.12
155.00
7.00 09.01.13
175.37
Toupargel Groupe
FR000039240
09.01.12
9.75
0.40 09.01.13
5.71
ERP5 Best selection - 37.3 % Europe, 7,5 Piotroski FScore ERP5 relative strength + 26.5 % Europe 8,5 Piotroski FScore. ERP5 Best Selection + 4.4 % Europe 8 Piotroski FScore. + 98.9 % Price Index 6 months sorted by ERP5 Price Index 6 months sorted by ERP5
Unibet Group
SE0001835588
09.02.12
178.50
6.22 01.02.13
219.50
Zetes Industries
BE0003827442
09.02.12
15.56
0.55 01.02.13
15.69
Enterprise Inns
GB00B1L8B624
03.07.12
53.25
28.02.13
105.90
Proffice
SE0000470700
03.07.12
24.50
1.13 28.02.13
24.50
+ 4.6 %
Osiatis
FR0004044337
10.04.11
6.05
0.45 28.03.13
6.57
ERP5 best Selection, + 16.0 % Magic Formula & 7,0 FScore ERP5 best Selection, - 42.8 % Magic Formula & F-Score 7 - 4.6 % Price Index 6 months sorted by MF Price Index 6 months sorted by MF
Roularta Media
BE0003741551
10.04.11
24.58
0.64 28.03.13
13.43
Cairo Communication
IT0004329733
04.04.12
3.28
0.28 28.03.13
2.85
Know It
SE0000421273
04.04.12
67.00
3.25 28.03.13
55.00
- 13.1 %
Inficon
CH0011029946
10.05.11
192.00
30.00 30.04.13
289.00
ERP5 best Selection + 66.1 % Europe, Magic Formula & 7,0 F-Score
13
ISIN
IE0000590798
Return %
+ 10.4 %
Strategy
0.19 30.04.13
Price Index 6 months sorted by MF Price Index 6 months sorted by Earnings Yield ERP5 BS Europe, Magic Formula & 7,5 F-Score
SMT Scharf
DE0005751986
09.05.12
21.30
0.98 30.04.13
23.89
+ 16.8 %
Koninklijke Brill
NL0000442523
10.06.11
14.00
2.13 30.05.13
21.60
+ 69.5 %
Regenersis
GB00B06GNN57
08.07.11
82.00
1.77 28.06.13
202.00
ERP5 best Selection UK, + 148.5 % Magic Formula & 7 Piotroski F-Score - 10.5 % Price Index 6 months sorted by ERP5 Price Index 6 months sorted by MF Price Index 6 months sorted by EY Price Index 6 months sorted by ERP5
Parrot
FR0004038263
02.07.12
23.90
0.00 28.06.13
21.38
Tipp24
DE0007847147
07.08.12
36.50
0.00 31.07.13
43.15
+ 18.2 %
Lookers
GB00B17MMZ46
07.09.12
72.25
2.35 28.08.13
124.50
+ 75.6 %
Xchanging
GB00B1VK7X76
07.09.12
117.50
1.00 28.08.13
122.00
+ 4.7 %
Etam Development
FR0000035743
28.02.13
18.40
0.00 23.09.13
23.00
Price Index 6 months + 25.0 % sorted by Value Composite 1 + 31.4 % ERP5 best Selection
Lectra
FR0000065484
07.10.11
4.91
0.44 30.09.13
6.01
Pandora
DKK0060252690
09.10.12
85.40
5.50 30.09.13
227.70
+ 173.1 %
Price Index 6 months sorted by MF Magic Formula (1yr) & 8 Piotroski F-Score Price Index 6 months sorted by ERP5 Price Index 6 months sorted by ERP5 & MF Price Index 6 months sorted by ERP5 Price Index 6 months sorted by Earnings Yield
ADLPartner
FR0000062978
09.11.10
7.80
3.30 31.10.13
11.50
+ 89.7 %
Chime Communications
GB00B2QY9355
08.11.12
206.50
7.34 31.10.13
316.50
+ 56.8 %
Cision
SE0000291486
08.11.12
53.25
2.00 31.10.13
32.60
- 35.0 %
Creston
GB0004440284
06.12.12
76.63
2.67 29.11.13
92.40
+ 24.1 %
Picanol
BE0003807246
06.12.12
19.57
0.00 29.11.13
24.65
+ 26.0 %
Average Return
Source: Yahoo Finance and Financial Times
+ 24.2 %
14
Dividend
Return
Strategy
Inteliquent
NASDAQ
IQNT
02.07.12
13.25
11.59
4.38
+ 20.5 %
Northrop Grumman
NYSE
NOC
09.10.12
69.00
112.68
2.93
+ 67.6 %
Gannett Company
NYSE
GCI
08.11.12
16.63
27.06
0.80
+ 67.5 %
Oshkosh
NYSE
OSK
08.11.12
28.18
48.75
0.15
+ 73.5 %
GameStop
NYSE
GME
06.12.12
26.64
48.25
0.83
+ 84.2 %
Harris
NYSE
HRS
06.12.12
48.03
64.51
1.58
+ 37.6 %
Marathon Oil
NYSE
MRO
09.01.13
31.65
36.04
0.53
Price Index 6 months + 15.5 % sorted by Earnings Yield Price Index 6 months + 73.0 % sorted by Earnings Yield Price Index 6 months - 11.0 % sorted by Earnings Yield, ERP5, MF Price Index 6 months + 32.3 % sorted by Earnings Yield Price Index 6 months + 84.6 % sorted by ERP5, VC1, MF - 2.4 % Price Index 6 months sorted by VC1
Western Digital
NASDAQ
WDC
09.01.13
43.80
75.04
0.75
Joy Global
NYSE
JOY
01.02.13
64.15
56.56
0.53
TRW Automotive
NASDAQ
TRW
01.02.13
58.65
77.60
0.00
Alliant Techsystems
NYSE
ATK
28.02.13
65.80
121.23
0.26
NYSE
CYH
28.02.13
42.26
41.25
0.00
NYSE
CRD
28.03.13
5.30
7.80
0.11
Price Index 6 months + 49.2 % sorted by ERP5, EY, MF Price Index 6 months + 161.2 % sorted by ERP5, EY, MF + 61.8 % Price Index 6 months sorted by VC1 Price Index 6 months sorted by VC1 Price Index 6 months sorted by EY
Gray Television
NYSE
GTN
28.03.13
4.69
12.25
0.00
Toronto
HWO
30.04.13
2.31
3.65
0.09
Safeway
NYSE
SWY
30.04.13
22.52
34.97
0.40
+ 57.1 %
NYSE
SAIC
30.05.13
31.63
36.85
0.28
+ 17.4 %
15
Dividend
Return
Strategy
NASDAQ
TWMC
30.05.13
4.59
4.35
0.00
- 5.2 %
Ark Resturants
NASDAQ
ARKR
28.06.13
21.15
21.50
0.00
+ 1.7 %
SL Industries
NYSE
SLI
28.06.13
25.08
30.50
0.00
+ 21.6 %
VSE Corporation
Nasdaq
VSEC
31.07.13
43.28
51.22
0.09
+ 18.6 %
WellPoint
NYSE
WLP
31.07.13
85.56
92.88
0.38
+ 9.0 %
Exelis
NYSE
XLS
28.08.13
14.78
17.67
0.10
+ 20.3 %
Seagate Technology
NASDAQ
STX
28.08.13
38.51
49.04
0.43
+ 28.5 %
NYSE
ESI
30.09.13
31.00
38.99
0.00
+ 25.8 %
Sanmina Corporation
NASDAQ
SANM
30.09.13
17.49
15.48
0.00
- 11.5 %
NYSE
SGY
31.10.13
34.86
33.08
0.00
- 5.1 %
Tenneco
NYSE
TEN
31.10.13
53.07
57.40
0.00
+ 8.2 %
NASDAQ
HNH
29.11.13
24.53
24.53
0.00
+ 0.0 %
Macro Enterprises
Toronto
MCR
29.11.13
6.69
6.69
0.00
+ 0.0 %
Average Return
Source: Yahoo Finance and Financial Times
+ 34.5 %
Disclosure: I do not have an investment in any of the North American Buy Recommendations.
16
Symbol
Added Date
07.10.11
Sold Date
09.10.12
Return Price
27.35
Strategy
Price
30.99
%
- 8.2 % ERP5 BS North America, Magic Formula & 7 F-Score
CMTL
Gamestop Corp
GME
07.10.11
24.33
0.55
09.10.12
23.99
ERP5 BS North America, + 0.9 % Magic Formula, RS & 7,5 FScore ERP5 BS North America, + 6.0 % Magic Formula, RS & 7,5 FScore - 8.9 % ERP5 BS North America, RS & 7 F-Score ERP5 BS North America & 7 F-Score ERP5 BS North America & 7 F-Score ERP5 BS North American & 8 F-Score ERP5 BS North America & 8 F-Score ERP5 BS North America & 7 F-Score 6 month price index sorted by ERP5 & 6 F-Score Price Index 6 months sorted by ERP5 Price Index 6 months sorted by ERP5 Price Index 6 months sorted by ERP5 Price Index 6 months sorted by ERP5 Price Index 6 months sorted by ERP5 Price Index 6 months sorted by ERP5 Price Index 6 months sorted by ERP5 & MF Price Index 6 months sorted by MF
L-3 Communications
LLL
08.11.11
70.97
1.50
08.11.12
73.73
NDAQ
08.11.11
26.00
0.13
08.11.12
23.56
Black Box
BBOX
30.11.11
28.53
0.30
06.12.12
25.02
- 11.3 %
Glacier Media
GVC
30.11.11
1.95
0.09
06.12.12
1.76
- 5.1 %
Ceradyne
CDY
09.02.12
33.74
0.45
06.12.12
35.00
+ 5.1 %
DeVry Inc.
DV
09.01.12
41.30
0.15
09.01.13
24.00
- 41.5 %
FSTR
09.01.12
28.67
0.09
09.01.13
44.13
+ 54.2 %
Softchoice
SO
09.02.12
12.40
0.14
01.02.13
12.43
+ 1.4 %
Meredith
MDP
03.07.12
32.34
1.56
28.02.13
42.02
+ 34.8 %
Rent-A-Center
RCII
03.07.12
33.55
0.69
28.02.13
36.28
+ 10.2 %
Almost Family
AFAM
03.04.12
24.87
2.00
28.03.13
20.43
- 9.8 %
Navigant Consulting
NCI
09.05.12
12.81
0.00
30.04.13
12.33
- 3.7 %
VAALCO Energy
EGY
09.05.12
8.13
0.00
30.04.13
6.72
- 17.3 %
GIII
07.06.12
25.13
0.00
30.05.13
41.86
+ 66.6 %
Veeco Instruments
VECO
07.06.12
33.52
0.00
30.05.13
42.60
+ 27.1 %
Littelfuse
LFUS
02.07.12
56.73
0.80
28.06.13
74.61
+ 32.9 %
17
Sold Date
31.07.13
Return Price
133.60
Strategy
Price
98.00
%
+ 36.3 % Price Index 6 months sorted by MF Price Index 6 months sorted by EY Price Index 6 months sorted by ERP5 Price Index 6 months sorted by MF Price Index 6 months sorted by ERP5
Daily Journal
DJCO
HollyFrontier
HFC
07.08.13
39.42
3.45
31.07.13
45.55
+ 24.3 %
Dorel Industries
DII.B
07.09.12
33.95
1.23
28.08.13
35.70
+ 8.8 %
RPC Inc.
RES
07.09.12
12.71
0.58
28.08.13
14.50
+ 18.6 %
CF Industries Holdings
CF
09.10.12
218.17
1.60
30.09.13
210.83
- 2.6 %
Average Return
Source: Yahoo Finance and Financial Times Notes:
+ 9.5 %
The Quant Value portfolio is an equally-weighted strategy and does not include dealing charges to purchase or sell securities, if any. Taxes are not included in total return calculations. Return includes gains from price appreciation, dividend payments, interest p ayments, and stock splits. For securities not quoted in Euro the total return is shown in the currency the security is quoted in. Sources for price data: Yahoo! Finance (finance.yahoo.com), Financial Times (www.ft.com), and company websites.
The Quant Value investment newsletter is published by Serendipity Ventures (UG) haftungsbeschrnkt a limited liability company incorporated in Germany. The companys address is Von -Eicken-Str. 13a, 22529, Hamburg, Germany. Telephone: +49 40 2261 1607, Email: tim@quant-value.com
18
Disclaimer
General Note This newsletter and its content are provided to you for informational purposes only and any discussion of past performance of any security, other investment or investment strategy should not be considered as being indicative or a guarantee of future performance. It does not constitute personalised financial advice nor an endorsement or solicitation to make any investment. Please do your own due diligence or hire a financial advisor before making any investment decisions. Its your money and your responsibility. The information herein is not intended to be personal legal or investment advice and may not be appropriate or applicable for all readers. If personal advice is needed, the services of a qualified legal, investment or tax professional should be sought. The price and value of securities referred to in this newsletter will fluctuate. Loss of all of the original capital invested in a securities discussed in this newsletter may occur. Certain transactions, including those involving futures, options, and other derivatives, give rise to substantial risk and are not suitable for all investors. You acknowledge that you understand that, due to many factors over which neither we, actual and subsequent events, performances and/or outcomes may differ substantially from any estimates, projections or predictions that might have been made in this newsletter. This research is, to the best of our knowledge, based on generally accessible sources which are reliable and accurate. However, no liability can be accepted for any errors or inaccuracies in information derived from these sources. The information in this publication has not been checked for accuracies or relevance to current events. Consequently, no liability can be assumed for the completeness and accuracy of this report. Serendipity Ventures (UG) haftungsbeschrnkt has a subscription and advertising based revenue model and it or the analyst will not receive any compensation for providing specific information, data, opinions, estimates and projections as well as recommendations in this report. The author received no compensation and is not affiliated with the company reviewed in this report with the possible exception of being a shareholder. Company Specific Disclosures This publication constitutes research of a non-binding nature on the market situation and the investment instruments cited here at the time of this publication on 29.11.2013. Indicated time horizon recommendation is 12 months. of investment
19