Recap from September’s Picks

Our Most Attractive Stocks (-1.6%) underperformed the S&P 500 (-1.4%) last month. Most Attractive Large Cap stock Weingarten Realty Investors (WRI) gained nearly 8% and Most Attractive Small Cap stock Universal Insurance Holdings (UVE) was up 18%. Overall, 21 out of the 40 Most Attractive stocks outperformed the S&P 500 in September.

Our Most Dangerous Stocks (-3.6%) outperformed the S&P 500 (-1.4%) last month. Most Dangerous Large Cap stock Tenet Healthcare Corp (THC) fell by 24% and Most Dangerous Small Cap Stock Nationstar Mortgage Holdings (NSM) fell by 16%. Overall, 23 out of the 40 Most Dangerous stocks outperformed the S&P 500 in September.

Photo Credit: Evan Leeson (Flickr) 

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.

12 new stocks make our Most Attractive list this month and 12 new stocks fall onto the Most Dangerous list this month. October’s Most Attractive and Most Dangerous stocks were made available to members on October 5.

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 October: Cisco Systems (CSCO: $28/share)

Cisco Systems (CSCO), provider of networking and communication products and services, is one of the additions to our Most Attractive stocks for October. Cisco was also our Stock Pick of the Week in November 2014.