Euro Quality - Piotroski F Score

Performance

  • -4.5 %
    since 2018-01-14
  • +21,2 %
    1 Jahr
    -0,22 %
    Heute
    -9,0 %
    Max Verlust (bisher)
    0,5x
    Risiko-Faktor
    ;
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    • All key figures
    • The current portfolio
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Trade Idea

This screen seeks out high quality European stocks using the rules outlined by Professor Joseph Piotroski and elaborated upon in a 2011 academic paper "Identifying expectation errors in Value/Glamour stocks"

Piotroski defines a 9 point fundamentals checklist called the F-Score. You can read more about the formation of the F-Score here ... https://www.investopedia.com/terms/p/piotroski-score.asp

My fund selects European stocks with an F-Score > 8. I add a further twist to the F-Score by selecting the best of the best (top 20% of the investment universe when ranked on Quality, Value & Momentum factors) to thin the field of potential investment candidates. A basket of stocks from the top 20% of an investment universe have been shown to outperform a randomised basket of stocks so by reducing the number of F-Score candidates by selecting the best of the best I should increase the upside and reduce downside risk.

All stocks have strong balance sheets and sensible debt profiles to further reduce risk.

Finally I look to purchase stocks they when the break from a period of consolidation or when they are at or close to new/recent highs and I look to ride the price momentum until it falters (which could takes days or years) and I use Ichimoku Clouds (a form of technical analysis) to assess the placement of stops.

This is a long only fund.

I monitor my investments on a daily basis. show more
Master data
Symbol
WFEUQUHIFS
Date created
2018-01-14
Index level
High watermark
100.2

Rules

wikifolio labels

Investment Universe

Trader

Registered since 2018-01-10
I've been investing in the stock market since the late 1990's but only committing serious funds since 2013. Since adopting a High Flyer strategy of selecting high quality small and mid cap European stocks that are exhibiting strong momentum I have made a 5 year annualised return of 28% in my consolidated trading accounts. During this time I have created a fantasy fund tracking my purchases which reflects own personal investments with the exception that sadly I didn't start with £1m :-(. You can see the fantasy fund and the associated trades here ... https://www.stockopedia.com/fantasy-funds/philhs-fund-4060/

Decision making

  • Technical analysis
  • Fundamental analysis

Comments

Comment on PSI SOFTWARE AG

PSI Software AG is ranked in the top 10% of companies within my investment universe when considering Quality, Value & Momentum factors. PSI has good Quality factors and a strong Momentum rank being driven by price momentum as the stock make new highs. PSI has announced a series of contract wins in November & December 2017. PSI also holds over 11% of its market capitalisation in cash and as with all of my selections has a strong balance sheet. PSI has double digits earnings growth projections and a low risk adjusted peg indicating the potential cheapness of the growth. show more

Comment on DALATA HOTEL GROUP PLC

Dalata Hotel Group is ranked within the top 14% of companies within my investment universe when considering Quality, Value & Momentum factors. Dalata Hotel Group has an excellent history of growing revenues and profit. Dalata has a strong and increasing operating margin and has increasing Momentum driven by a combination of price improvements and earnings estimates upgrades. Dalata has solid earnings growth which is cheap on a risk adjusted basis. show more

Comment on FUNKWERK O.N.

Funkwerk is ranked in the top 10% of companies within my investment universe when considering Quality, Value & Momentum factors. Funkwerk has strong Quality factors and a particularly strong Value rank. Price momentum is good but as Funkwerk is a small cap stock, analyst coverage is lower which means that there is limited analyst coverage. This can be good (in that private investors can find hidden gems before the big boys) and bad (as it might take a while for the potential of the stock to be realised). This is a more speculative stock than others in the portfolio but given its low valuation the downside risk is reduced and it has the potential to grow significantly if it continues to perform and it is recognised by the wider market. show more

Comment on WACKER CHEMIE AG

Wacker Chemie is ranked within the top 11% of companies within my investment universe when considering Quality, Value & Momentum factors. It has a strong Quality score and a very strong Momentum score driven by analyst's earnings upgrades and the stock price momentum. show more
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