Duplicate

James Montier 'Cooking the Books' Screen 200 Qualifying

James Montier Cooking the Books is a short selling strategy based on research by economist and equity strategist James Montier. It uses Low Quality criteria to identify stocks that could be at risk of bad accounting practice. The 6-point C-Score checklist looks at the divergence between net income and cash-flow, increasing days sales outstanding, increasing days sales of inventory, increasing current assets to revenues, declining depreciation relative to property, plant and equipment and high total asset growth. Montier found that the C-Score was even more effective when used to assess stocks that look over-valued on a price-to-sales ratio basis. James Montier wrote: "In good times, few focus on such 'mundane' issues as earnings quality and footnotes. However, this lack of attention to 'detail' tends to come back and bite investors in the arse during bad times." Montier found that stocks with a C-score of 5 and a price-to-sales ratio of greater than 2 tend to generate a negative absolute return of 4% per year. Short selling shares can be very risky but the C-Score can still be used as an indicator of which stocks should be avoided.

To learn more about this strategy please click here »

This is an independent study based upon the methods of...
Picture of James Montier

James Montier

Former head of Global Strategy at Société Générale, now works for GMO. Author of 'Behavioural Investing' & 'Value Investing: Tools and Techniques for Intelligent Investment'.

Value Investing Montier

by James Montier

The seductive elegance of classical finance theory is powerful, yet value investing requires that we reject both the precepts of modern portfolio theory (MPT) and pretty much all of its tools and techniques. This book explains how value investing is the only tried and tested method of delivering sustainable long-term returns.

This screen uses the following criteria:

  • Montier C-Score >= 5
  • P/S > 2

Results are sorted by:

  • P/S in descending order


And limited to the first 200 Results


Can these rules be improved? Submit a suggestion »
Want to make your own version? Create a Duplicate

Performance Tracking


Returns FTSE 100
1 week 0.8% 0.8% -3.4% 1.3% -0.8% -3.2% -3.3% 1.3%
1 month 3.2% -0.4% -68.5% 3.4% 2.2% -8.4% -1.0% -1.8%
3 months 1.4% 0.5% -7.0% -0.2% -3.7% 1.6% 17.6% 0.2%
6 months 17.7% 13.8% -7.3% -0.0% -4.1% -1.2% 21.5% -0.8%
1 year 7.6% 31.6% -0.0% 13.7% -1.9% -11.4% 9.7% 6.7%
2 years 18.3% 30.0% 12.8% - - - - 20.5%
Annualised -4.6% 6.4% 0.2% 17.7% 10.1% -3.1% 1.1%
 
Risks
Max Drawdown -49.2% -34.8% -79.9% -21.5% -21.8% -26.4% -31.7%
Avg Holdings 24.2 24.6 25 25 23.3 25 24.9
Diversification Good Good Good Good Good Good Good

 Studies based on equal weighted portfolios of max 25 stocks rebalanced quarterly. Qualifying shares below updated daily. Past performance not indicative of future returns.

 Please note that 'short selling' strategies are designed to underperform the market - they are best used for hedging long portfolios rather than for absolute negative returns.



Please subscribe to see the companies that qualify for this independent study of the James Montier 'Cooking the Books' Screen Strategy.
Plans start from as little as $30 per month. 14 day FREE TRIAL available.

200 Qualifying

Ticker Name Mkt Cap £m Montier C-Score P/S Sector Flag
Subscriber Subscriber Basic Materials India
Subscriber Subscriber Basic Materials Australia
Subscriber Subscriber Basic Materials Australia
Subscriber Subscriber Basic Materials Australia
Subscriber Subscriber Basic Materials Australia
Subscriber Subscriber Consumer Cyclicals United States
Subscriber Subscriber Consumer Cyclicals United States
Subscriber Subscriber Consumer Cyclicals United States
Subscriber Subscriber Basic Materials Australia
Subscriber Subscriber Energy Australia
Subscriber Subscriber Healthcare Sweden
Subscriber Subscriber Financials Bulgaria
Subscriber Subscriber Energy Australia
Subscriber Subscriber Basic Materials Canada
Subscriber Subscriber Energy Australia
Subscriber Subscriber Energy United Kingdom
Subscriber Subscriber Healthcare United States
Subscriber Subscriber Healthcare Korea, Republic of
Subscriber Subscriber Basic Materials Australia
Subscriber Subscriber Basic Materials Australia
Subscriber Subscriber Basic Materials Australia
Subscriber Subscriber Consumer Defensives India
Subscriber Subscriber Healthcare United States
Subscriber Subscriber Healthcare Canada
Subscriber Subscriber Technology Australia
Subscriber Subscriber Basic Materials Australia
Subscriber Subscriber Basic Materials Hong Kong
Subscriber Subscriber Healthcare Canada
Subscriber Subscriber Energy Australia
Subscriber Subscriber Financials India
Subscriber Subscriber Industrials India
Subscriber Subscriber Basic Materials Australia
Subscriber Subscriber Healthcare United States
Subscriber Subscriber Healthcare United Kingdom
Subscriber Subscriber Basic Materials Australia
Subscriber Subscriber Basic Materials Australia
Subscriber Subscriber Financials India
Subscriber Subscriber Basic Materials Australia
Subscriber Subscriber Utilities Australia
Subscriber Subscriber Basic Materials Hong Kong
Subscriber Subscriber Industrials India
Subscriber Subscriber Consumer Cyclicals Hong Kong
Subscriber Subscriber Energy India
Subscriber Subscriber Healthcare Sweden
Subscriber Subscriber Healthcare Canada
Subscriber Subscriber Financials Hong Kong
Subscriber Subscriber Energy Hong Kong
Subscriber Subscriber Technology Hong Kong
Subscriber Subscriber Healthcare Korea, Republic of
Subscriber Subscriber Healthcare Japan
Subscriber Subscriber Healthcare Korea, Republic of
Subscriber Subscriber Basic Materials Taiwan
Subscriber Subscriber Industrials Australia
Subscriber Subscriber Healthcare Korea, Republic of
Subscriber Subscriber Healthcare Korea, Republic of
Subscriber Subscriber Basic Materials Australia
Subscriber Subscriber Financials Turkey
Subscriber Subscriber Energy Hong Kong
Subscriber Subscriber Healthcare Germany
Subscriber Subscriber Basic Materials Australia
Subscriber Subscriber Technology United States
Subscriber Subscriber Consumer Cyclicals Poland
Subscriber Subscriber Basic Materials Australia
Subscriber Subscriber Consumer Cyclicals Poland
Subscriber Subscriber Consumer Cyclicals Hong Kong
Subscriber Subscriber Basic Materials United Kingdom
Subscriber Subscriber Technology Japan
Subscriber Subscriber Consumer Cyclicals Hong Kong
Subscriber Subscriber Financials Taiwan
Subscriber Subscriber Healthcare Australia
Subscriber Subscriber Healthcare Sweden
Subscriber Subscriber Financials Hong Kong
Subscriber Subscriber Technology Hong Kong
Subscriber Subscriber Consumer Defensives India
Subscriber Subscriber Technology Japan
Subscriber Subscriber Industrials India
Subscriber Subscriber Industrials India
Subscriber Subscriber Energy United States
Subscriber Subscriber Industrials Hong Kong
Subscriber Subscriber Financials Poland
Subscriber Subscriber Technology Canada
Subscriber Subscriber Energy Hong Kong
Subscriber Subscriber Healthcare United States
Subscriber Subscriber Consumer Cyclicals Hong Kong
Subscriber Subscriber Financials India
Subscriber Subscriber Financials India
Subscriber Subscriber Healthcare United Kingdom
Subscriber Subscriber Healthcare United States
Subscriber Subscriber Healthcare France
Subscriber Subscriber Technology Hong Kong
Subscriber Subscriber Financials United Kingdom
Subscriber Subscriber Industrials Sweden
Subscriber Subscriber Industrials Sweden
Subscriber Subscriber Financials Hong Kong
Subscriber Subscriber Technology United States
Subscriber Subscriber Financials Switzerland
Subscriber Subscriber Consumer Cyclicals Germany
Subscriber Subscriber Consumer Cyclicals Germany
Subscriber Subscriber Healthcare Sweden
Subscriber Subscriber Technology Poland
Subscriber Subscriber Healthcare Sweden
Subscriber Subscriber Consumer Cyclicals Hong Kong
Subscriber Subscriber Consumer Cycli