Formatting is again basic at best, but some readers seemed to prefer it as it was less 'corporate', so I might keep it for now. Anyway, on to the important stuff.
If you're a premium subscriber I'll be sending out the latest issue next week and if time allows it will be available online as well as by PDF. This could be the start of the Defensive Value Report morphing into a 'Premium' subscription service like MorningStar's or the Manual of Ideas.
If you're not a premium subscriber then I've recently introduced a 60-day no credit card free trial, so if you're interested you can take a look by clicking here. If you think there are things you'd like to see improved or implemented just let me know.
But first, back to those two stock reviews:
Why Smith & Nephew's Good Results Could Be Bad News
Smith & Nephew (a FTSE 100 medical equipment maker) recently released its annual results and managed to please Mr Market. It did this by increasing revenues, margins and adjusted earnings, which was better than many had expected.
Suitably impressed, Mr Market responded with a four percent plus rise in the share price.
AstraZeneca on the other hand (a FTSE 100 drug maker and a stock I have reviewed before) met with a much harsher fate by merely matching expectations, which are generally pretty glum anyway.
To continue reading this review click here
Small-Cap Value Step by Step with Psion
Digging around at the small-cap end of the market can be a dangerous activity, especially if you're investing like a loose cannon by buying without a plan or strategy.
Despite these dangers, value investors do love their small-caps and so it's worth spending some time drawing up a repeatable and systematic plan for uncovering value.
This is the critical first step in becoming a successful investor because study after study shows that investors are generally very bad indeed at stock picking.
To continue reading this review click here
Greg Speicher's new free e-book
This has whizzed around the value investors that I know and it's a pretty useful collection of quick pointers. Greg is a US based investor and blogger but the e-book is not really specific to any stocks; it's a collection of bite-sized thoughts on being a sound investor. For example:
"invest in companies that dominate their industries"
"Write down why you are buying a stock before you buy it!"
"Use checklists. Some of the smartest people do this. They will help your performance. If
you're good, you'll get better. If you're already good… Just do it! MOST SKIP THIS IDEA"
It's a bit long to print off the whole thing but I'll be picking out the best 5 or 10 and sticking them up on the wall.
You can download Greg's e-book here
Most investors are terrible stock pickers
I don't want to rain on your parade, but here is yet more evidence (from Professor Greenblatt of Magic Formula fame) that investors acting outside of a repeatable and pre-defined and research backed strategy are likely to reduce their returns. That's exactly why over time I've focused more and more, and now perhaps exclusively, on this sort of regimented approach to investing.
To read Greenblatt's article click here
I hope that's enough to keep you thinking over the weekend!
Until next week,
- John
P.S. You can reply to this email and I'll read it; it won't go into a junk email bin, so if you have anything to say just hit the reply button.
P.P.S. Alternatively, if you know someone who might be interested in value investing then feel free to forward this email to them.
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