Recap from October’s Picks

Our Most Attractive Stocks (5.9%) slightly outperformed the S&P 500 (5.9%) last month. Most Attractive Large Cap stock Lam Research Corp (LRCX) gained 17% and Most Attractive Small Cap stock Hawaiian Holdings (HA) was up 39%. Overall, 19 out of the 40 Most Attractive stocks outperformed the S&P 500 in October and 32 stocks had positive returns.

Our Most Dangerous Stocks (3.6%) rose less than the S&P 500 (5.9%) and outperformed as a short portfolio last month. Most Dangerous Large Cap stock Tenet Healthcare Corp (THC) fell by 14% and Most Dangerous Small Cap Stock Astrotech Corporation (ASTC) fell by 9%. Overall, 24 out of the 40 Most Dangerous stocks outperformed the S&P 500 as shorts in October.

The successes of the Most Attractive and Most Dangerous stocks highlight the value of our forensic accounting. Being a true value investor is an increasingly difficult, if not impossible, task considering the amount of data contained in the ever-longer annual reports. By analyzing key details in these SEC filings, our research protects investors’ portfolios and allows our clients to execute value-investing strategies with more confidence and integrity.

14 new stocks make our Most Attractive list this month and 10 new stocks fall onto the Most Dangerous list this month. November’s Most Attractive and Most Dangerous stocks were made available to members on November 4, 2015.

Our Most Attractive stocks have high and rising return on invested capital (ROIC) and low price to economic book value ratios. Most Dangerous stocks have misleading earnings and long growth appreciation periods implied by their market valuations.

Most Attractive Stock Feature for November: Diamond Resorts International (DRII: $28/share)

Diamond Resorts International (DRII), a hospitality and vacation ownership company, is one of the additions to our Most Attractive stocks for November.

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