Our universe of stocks outperformed the S&P by 4.2% last month while the Undervalued Screen gained 6.5% relative. The Overvalued were equal to the universe’s return of 4.2% mainly due to the superior performance of the Energy stocks which numbered 15 out of 26 in the screen.
The Overvalued ended the month on a strong note gaining 2.4% in the last week.
There were huge gains and losses for those stocks entering or leaving the screens from October 31st to November 30th.
Those leaving the Undervalued averaged close to +14%. Those leaving the Overvalued were down 7%.
The 7 stocks entering the Overvalued screen increased an average of 29% in the month, an astonishingly high number. At the beginning of the month, they were fairly valued with an average of -1.8% and a range of -12 to +11%.
(c) 2016 Robert L. Colby
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