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Finding Value With The Piotroski F-Score

Finding Value With The Piotroski F-Score

The following is part of a series originally published at the end of November on SeekingAlpha. The series was designed to test the effectiveness of the Piotroski F-Score in today’s market. The F-Score was designed to help investors outperform the market, but if it was really that good, surely everyone would be using it? The stocks below were selected using computer screens, no human interaction was involved, the stocks that qualified for the F-Score screen, entered the test portfolio. I’ve always believed…

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Market Sentiment

Market Sentiment

“…The line separating investment and speculation, which is never bright and clear, becomes blurred still further when most market participants have recently enjoyed triumphs. Nothing sedates rationality like large doses of effortless money. After a heady experience of that kind, normally sensible people drift into behavior akin to that of Cinderella at the ball. They know that overstaying the festivities — that is, continuing to speculate in companies that have gigantic valuations relative to the cash they are likely to…

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Derivatives Market Reaches New High

Derivatives Market Reaches New High

A combination of fractional reserve banking, bank leverage, money printing, derivative manufacturing and government borrowing has been the reason behind much of the global GDP growth over the past 40 years. This market is now worth a staggering $1 + quadrillion,  that’s $1,000,000,000,000,000 of essentially worthless derivatives where buyers only need to put up a fraction of the purchase price. Add in $250 trillion of government debt around the world and things start to look pretty shaky. During 2012, the…

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COMEX Deliverable Gold Bullion Reaches a 10-year Low

COMEX Deliverable Gold Bullion Reaches a 10-year Low

Back in August, the number of claims per physical ounce of gold stored in COMEX warehouses reached 50. That’s 50 owners for every ounce of gold available for delivery. The physical gold rout has continued and the number of owners per physical ounce, now stands at 54.6, a level not seen since 2003. This comes at a time when the global demand for physical gold is rising, led by Asia where Chinese gold consumption is expected to grow 29% this year….

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Where has all the Gold Gone?

Where has all the Gold Gone?

The total amount of gold available for delivery on the COMEX has fallen to a record low. There are now up to 50 owners for every ounce of gold available for delivery. The total amount of gold available for delivery in COMEX warehouses currently totals around 774,000 ounces, or 24 tons; 29 tons were requested for delivery in July. With the August delivery date coming up someone should start getting worried. It would appear that buying gold nowadays does not…

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The Bank of CAT

The Bank of CAT

It would appear that banks are no longer required to finance company or individual spending on industrial hardware. One of the most successful divisions of industrial behemoth Caterpillar is now its financing arm, which borrows money from banks and investors to loan out to customers at a higher rate — a lucrative business.  Caterpillar finance division income statement 2013 2012 Change  Total revenues $680 $668 1.80% Total expenses $490 $499 -1.80% Profit $141 $120 17.50% Margin 20.7% 18.0% 15.43% Figures…

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Only Some of the Market is Overvalued

Only Some of the Market is Overvalued

There is much speculation about which direction the market will take in the next few weeks. Many analysts are stating that the markets valuation is now stretched and will not move any higher until either earnings rise significantly. However, it would appear that while some stocks in the market are indeed trading on stretched valuations, some sectors are still undervalued. Indeed, Bank of America and other market analysts recently put together a study of equity ratios dating back 27 years…

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