Charting Contrarian Investments Strategies Stocks

[mearsdl]

Hey All,

It's been a while since I have been here.

I just finished reading Contrarian Investment Strategies by David Dreman and have concluded that low P/E, P/Book Value, High Dividend strategy to choose stocks is quite intriguing and offers, with solid statistical proof, that when you choose stocks in the low 20% of the spectrum of valuation techniques mentioned above, and the high 20% above the average for the Dividend yield that you come out on top and beating the S&P by a few points.

The S&P average P/E going forward is about 11 and the average P/Book Value is around 2. The dividend yield of the average is around 2.5-3% I believe.

You can then do a more narrow focus based on industry and then sector and figure the averages for those and figure the formula that way as well.

Now, some of these fit all three, and some fit a couple. But most of these, if not all are extremely low in trading ranges over the last year and in many cases, years.

I was considering, as the title suggests, focusing on these stocks that fall into this category. Given the trouncing all of these have gone through, I figured I would be more likely to catch nice upwards trends in these stocks.

For Example:

Walt Disney DIS
General Electric GE
Wells Fargo WFC
Bank of America Corporation (BAC)
JPMorgan Chase & Co. (JPM)
SunTrust Banks, Inc. (STI)
Alcoa AA
Conoco Philips COP
Caterpillar CAT
Agrium AGU
Dow Chemical Co. (DOW)
Eastman Chemical Co. (EMN)
Occidental Petroleum Corporati (OXY)
Apache Corp. (APA)
Devon Energy Corporation (DVN)
XTO Energy Inc. (XTO)
Allstate Corp. (ALL)
MetLife, Inc. (MET)
Manulife Financial Corporation (MFC)
Goldman Sachs Group Inc. (GS)
Morgan Stanley (MS)
American Express Company (AXP)
AFLAC Inc. (AFL)
Assurant Inc. (AIZ)
Brookfield Properties Corporat (BPO)
Avery Dennison Corporation (AVY)


There are more that I will post.

Please do your DD.