Merel Finance Identifies 5 Value Stocks in a Volatile Period Using a Method Beating the Market by More Than 16 Percent

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Merel Finance, an independent financial on-line publication, identifies 5 value stocks in a difficult US market: Prospect Capital Corporation, Olympic Steel Inc., Speedway Motorsports Inc., Spartan Stores Inc., Rock-Tenn Co. The stock picking method developed by Merel Finance beats the market by more that 16 percentage points over the same period, showing a strong gain compared to losses for all major market indicators.

Merel Finance, an independent financial on-line publication, identifies 5 value stocks in a difficult US market. These stocks are selected using a method developed by Merel Finance based on fundamental analysis. The objective is to maximize long-term returns.

Interesting opportunities for long-term investments are identified in this volatile period. The following companies are considered to be 5 value stocks: Prospect Capital Corporation (Closed-End Fund - Equity), Olympic Steel Inc. (Steel & Iron), Speedway Motorsports Inc. (Sporting activities), Spartan Stores Inc. (Food Wholesale), Rock-Tenn Co. (Consumer Goods).

These stocks are characterized by a low Price-to-Earnings (P/E) ratio, strong past and projected growth and a high return on equity. Also, dividend yields as high as 11.2% (Prospect Capital Corporation) are found.

The Merel Finance Value Index measures the performance of the Merel Finance stock picking method. Since August 17 2007, the Merel Finance Value Index gained 13.6% while the Dow Jones Industrial average, the Nasdaq Index and the S&P 500 index lost 3.6%, 2.6% and 3.1%, respectively.

The Merel Finance Value Index beats the market by more that 16 percentage points during this difficult period, showing a strong gain compared to losses for all major market indicators. The twenty companies in the index are mostly from the Oil & Gas industry, Steel & Iron industry and Industrial Metals & Minerals industry.

The stock picking method developed by Merel Finance considers, among important indicators, P/E ratios, past and potential earnings growth, dividend yield and return on equity. A large number of stocks are examined, but only the most promising are selected. The goal of using this method is to outperform stock markets indicators over the long-term.

During volatile market periods, it is important for investors not to panic and to seize buying opportunities of high quality stocks at a discount price, like those presented here.

About Merel Finance:
Merel Finance is an independent financial publication offering to investors a stock selection method maximizing long-term returns (buy-and-hold strategy).

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Philippe Merel Ph.D.
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