PowerStocks ValueFinder

It now makes logical sense for us to want to perform a "Value" screen on the JSE by seeking stocks that are "cheap" (have low PE's and low Price:Book ratios, as with the PriceFinder screen) but are ALSO "quality" (financially sound, as shown with Piotroski Screen). We can do this by combining the Piotroski rankings with those PE and Price:Book scans we did previously. We call this triple-combo screen our PowerStocks ValueFinder.

Using this screen yielded a portfolio of only six shares at the trough of the last Bear market, that grew an impressive 593% on an equal weighted basis or a staggering 1042% on a market-cap weighted basis. (The weighted basis is merely the method you use to contruct your portfolio.) Every single stock in this portfolio grew more than 250%. To pick such a small portfolio with such impressive results is truly remarkable.

The flow diagram below shows how the PowerStocks methodology successively screened the JSE down from 271 to 6 stocks in the trough of the last Bear market.

We bet you are just itching to see which stocks currently meet the ValueFinder criteria right? If you would like a complete ValueFinder report of ALL 425 JSE stocks then proceed to PowerStocks JSE Rankings Report. However we strongly suggest you resist temptation and read the next section first, as we will show an even MORE powerful refinement to the ValueFinder stock picking methodology.

NEXT UP : Even more powerful, the PowerStocks ValueScore