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Still Plenty of Bargains

In the past month, market volatility has increased due to earnings season and European debt worries. But based on our measurement of fair value, we believe the market as a whole still has room to climb much further, so we continue to recommend that you invest for capital appreciation, taking care as always to buy only when stocks are below their Maximum Buy Price. This month, we’re adding two new stocks to Classic Benjamin Graham Value Model on pages 2 and 3, and seven new stocks to the Wise Owl Model on pages 4 and 5. Our Special Feature this month, on pages 6 and 7, is Undervalued Companies with Low Price-to-Book Value Ratios. Such quality companies with low price-to-book value ratios (P/BV) have outperformed companies with higher valuations for the past three-, five- and 10-year periods, and we believe this month’s selections provide diversification, profit potential and defense should the market’s downtrend continue. Lastly, please note on page 8 that Coach has hit its Minimum Sell Price. We recommend that you sell COH now or use a trailing stop loss order.