Posts in Naked PE

The Essential PE

If you take today's share price and divide it by one year of earnings per share taken from a company's results six or more years ago it will, in general, be a more powerful predictor of future stock market returns than using this year's earnings.

That remarkable fact reminds me how many investors take the price earnings ratio for granted. Almost all of us use it but how many have really scrutinised it? Few have built their career around the PE, but Dr Keith Anderson, a finance lecturer at the University of York, has.

The cheapest six stocks in May

Still waiting...

Welcome to my little shop of horrors.

Before I introduce the cheapest six stocks this month, here’s the performance of previous £6,000 portfolios created using Dr Keith Anderson’s extreme price earnings ratio, the Naked PE, one year, two years, and

The cheapest six stocks in February

Naked PE exposed When we introduced the Naked PE to readers of this blog in 2007, its historical record promised amazing predictive power. A £1,000 portfolio of the five lowest Naked PE shares formed in 1975 and rebalanced every year (i.e. sold and reinvested in the new five lowest Naked PE shares) would have been worth nearly £7m in 2007, a compound return of 32%. Extremely cheap shares delivered extremely good returns.

The cheapest six stocks in November

Investing at the extremes. Here are the companies currently at the top of Dr Keith Anderson’s ‘six of the best’ tables of extremely cheap stocks.

The cheapest six stocks in August

In practice: Six of the ‘best’ Here are the six cheapest stocks on the market. As Dr Keith Anderson, the inventor of the econometric method for divining them likes to say, they’re six of the best.

The cheapest six stocks on the market

In practice: 160% in six months ain’t bad For the first time since February 2007, I’m starting our quarterly exercise in bottom fishing, ‘the cheapest six stocks on the market’, with good, even spectacular, news.

The six cheapest stocks in February

A glimmer of light?

Here are the six cheapest stocks on the market, as of February 10, according to Dr Keith Anderson’s Naked PE ratio.

The Naked PE improves on the predictive power of the plain o

The cheapest six stocks in November

Here are the cheapest six stocks in November, as measured by Dr Keith Anderson’s Naked Price Earnings ratio:

As I’ve described many times, this measure boosts the predictive power of the PE by accounting for a

The six cheapest stocks in August

Apologies for bringing you August’s list in September. As predicted, holiday and the scramble to meet deadlines either side of it kept me away from the blog. 

Here are the cheapest six shares according to Dr Keith Anderson’s Naked PE ratio.

The six cheapest stocks in May

Dr Keith Anderson picks out the very cheapest stocks on the market using his Naked PE ratio.