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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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:
Results are sorted by:
And limited to the first 200 Results
| Returns |  |
 |
 |
 |
 |
 |
 |
FTSE 100 |
|---|---|---|---|---|---|---|---|---|
| 1 week | 3.4% | 1.7% | 10.0% | 8.4% | 0.4% | -0.2% | 2.6% | 2.0% |
| 1 month | 8.1% | 2.4% | 10.4% | 12.0% | -1.3% | 1.8% | 18.6% | 3.0% |
| 3 months | 14.7% | 11.0% | 25.4% | 15.4% | 19.6% | 15.9% | 21.8% | 2.4% |
| 6 months | 23.7% | 20.7% | 55.4% | 30.3% | 50.0% | 24.8% | 50.6% | 13.3% |
| 1 year | 32.2% | 30.2% | 92.7% | 63.0% | 50.7% | 39.5% | 47.9% | 4.0% |
| 2 years | 24.5% | 16.9% | 44.4% | -3.8% | -21.1% | 25.5% | 28.6% | -5.4% |
| Annualised | 3.1% | 5.1% | 8.7% | 8.2% | 2.0% | 12.2% | 4.7% | |
| Risks | ||||||||
| Max Drawdown | -47.1% | -44.4% | -51.6% | -79.6% | -70.0% | -30.1% | -67.7% | |
| Avg Holdings | 7.8 | 24.5 | 25 | 10.7 | 3.9 | 25 | 5.8 | |
| Diversification | Low | Good | Good | Moderate | Low | Good | Low | |
