Merel Finance (http://www.merelfinance.com), an independent financial on-line publication, identifies 5 value stocks in a difficult US market. These stocks are selected using a method developed by Merel Finance (http://www.merelfinance.com)based on fundamental analysis. The objective is to maximize long-term returns.
Interesting opportunities for long-term investments are identified in this volatile period. The following companies are considered to be 5 value stocks: Prospect Capital Corporation (Closed-End Fund - Equity), Olympic Steel Inc. (Steel & Iron), Speedway Motorsports Inc. (Sporting activities), Spartan Stores Inc. (Food Wholesale), Rock-Tenn Co. (Consumer Goods).
These stocks are characterized by a low Price-to-Earnings (P/E) ratio, strong past and projected growth and a high return on equity. Also, dividend yields as high as 11.2% (Prospect Capital Corporation) are found.
The Merel Finance Value Index (http://www.merelfinance.com/index.phprub=3&lang=)measures the performance of the Merel Finance stock picking method. Since August 17 2007, the Merel Finance Value Index gained 13.6% while the Dow Jones Industrial average, the Nasdaq Index and the S&P 500 index lost 3.6%, 2.6% and 3.1%, respectively.
The Merel Finance Value Index (http://www.merelfinance.com/index.phprub=3&lang=)beats the market by more that 16 percentage points during this difficult period, showing a strong gain compared to losses for all major market indicators. The twenty companies in the index are mostly from the Oil & Gas industry, Steel & Iron industry and Industrial Metals & Minerals industry.
The stock picking method developed by Merel Finance (http://www.merelfinance.com)considers, among important indicators, P/E ratios, past and potential earnings growth, dividend yield and return on equity. A large number of stocks are examined, but only the most promising are selected. The goal of using this method is to outperform stock markets indicators over the long-term.
During volatile market periods, it is important for investors not to panic and to seize buying opportunities of high quality stocks at a discount price, like those presented here.
About Merel Finance:
Merel Finance is an independent financial publication offering to investors a stock selection method maximizing long-term returns (buy-and-hold strategy).