After One Year of Existence, the Merel Finance Value Index Beats the Dow Jones Industrial Average by 42.8 Percentage Points

Share Article

The Merel Finance Value Index was created to evaluate the stock selection method developed by Merel Finance. Created August 17, 2007, the index is composed of twenty stocks traded on US exchanges. The companies selected are mainly from the Steel & Iron, Industrial metals & minerals and the Oil & Gas industries. After one year of existence, the Merel Finance Value Index beats the Dow Jones Industrial average by 42.8 percentage points.

This is a perfect time to be a value investor, obviously, many good companies are undervalued.

The Merel Finance Value Index was created August 17, 2007 to evaluate the stock selection method developed by Merel Finance. After one year of existence, the Merel Finance Value Index beats the Dow Jones Industrial average by 42.8 percentage points.

From August 17, 2007 to August 15, 2008, the Merel Finance Value Index gained 31.9 %. During the same period, all major US stock indexes declined; -10.9% for the Dow Jones industrial average, -10.2 % for the S&P 500 and -2.1 for the NASDAQ composite index.

The index is composed of twenty stocks traded on US exchanges such as Cleveland-Cliffs Inc (gain of 204%) and Diamond Offshore Drilling Inc. (gain of 21%). The companies selected are mainly from the Steel & Iron, Industrial metals & minerals and the Oil & Gas industries.

The team at Merel Finance developed their systematic stock-picking method with a goal of maximizing long-term returns. They screen through the U.S. Stock Markets to find value stocks based on fundamental analysis. The stock selection method is optimized for a buy-and-hold strategy. Indeed, during the past year, only one change occurred in the composition of the index because of an acquisition. Also, it is assumed that dividends are re-invested in the stocks at the current market price.

This week, Merel Finance presents the following companies selected using their method: Vimpel-Communications (Wireless Communications), Barnes Group Inc. (Industrial Equipment & Components), United States Steel Corp. (Metal Fabrication), CAE Inc. (Aerospace/Defense Products & Services), Apogee Enterprises Inc. (General Building Materials).

Philippe Mérel Ph.D., founder of the company, hopes that investors keep investing in stocks, especially in this volatile market: "This is a perfect time to be a value investor, obviously, many good companies are undervalued."

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

# # #

Share article on social media or email:

View article via:

Pdf Print

Contact Author

Philippe Merel Ph.D.
Visit website