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Dreman Low Price to Book Screen 200 Qualifying

This is a low Price to Book based on the writings of David Dreman. He champions a contrarian investment approach based on interpreting market psychology and using value measures to pick stocks that are out of favour with the market. Dreman invests in out-of-favour stocks, often in out-of-favour industries, that he identifies using relatively straightforward metric criteria. "I buy stocks when they are battered. I am strict with my discipline. I always buy stocks with low price-earnings ratios, low price-to-book value ratios and higher-than-average yield. Academic studies have shown that a strategy of buying out-of-favor stocks with low P/E, price-to-book and price-to-cash flow ratios outperforms the market pretty consistently over long periods of time."

Dreman warns that the Price to Book strategy in particular may lead to investing in loss-making stocks, at which one needs to be especially careful, and double-checking a company's financial strength is especially important.

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This is an independent study based upon the methods of...
Picture of David Dreman

David Dreman

Dreman is currently the founder, chairman and CIO of Dreman Value Management LLC. Author of 'Contrarian Investment Strategies: The Next Generation'. Regular columnist for Forbes magazine.

Contrarian Investment Strategies Dreman

by David Dreman

The 'contrarian guru' of investment shows today's financiers how to out perform professional money managers and profit from Wall Street panics.

This screen uses the following criteria:

  • Rank ( P/B ) > 60%
  • Sales £m > 100
  • Debt To Assets % < Median Debt To Assets %
  • Current Ratio > 1
  • Yield % > Median Yield %
  • Industry Group not in (Collective Investments)

Results are sorted by:

  • P/B in ascending order


And limited to the first 200 Results


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Performance Tracking


Returns FTSE 100
1 week 2.9% -2.1% -2.8% -0.0% -2.1% -0.5% 0.1% 1.0%
1 month -2.3% -1.1% -4.9% -3.5% -4.5% 3.6% -6.5% -2.7%
3 months -4.6% -6.0% -7.0% -13.7% -18.2% -3.3% -9.9% -6.3%
6 months -23.3% -14.3% -7.5% -27.2% -11.0% -12.5% -11.3% -11.9%
1 year -17.0% -15.5% -0.4% -47.6% -4.2% -7.8% -11.5% -8.1%
2 years -11.9% -1.3% -5.1% -15.2% -18.9% 7.5% -36.3% -1.5%
Annualised 0.8% 4.0% 3.5% 16.8% 5.3% 11.1% -1.1%
 
Risks
Max Drawdown -46.9% -25.8% -43.1% -57.0% -28.6% -18.0% -43.7%
Avg Holdings 8.4 24.3 25 7 4.5 25 5.2
Diversification Moderate Good Good Low Low Good Low