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Confusing Environment, Reliable Guidance


By J. Royden Ward, Analyst and Editor of Cabot Benjamin Graham Value Letter
From the November issue of Cabot Benjamin Graham Value Letter 11/6/09

The U.S. Federal Reserve says it intends to keep interest rates low, and that’s usually good news for investors. But the unemployment rate remains stubbornly high, the dollar has been very weak and nervousness about our country’s economic future abounds. At the same time, market volatility has increased in recent days, reflecting the ebb and flow of large amounts of money hunting for a comfortable home. It’s a confusing state of affairs for the best of us … and we don’t claim to be the best. We do, however, claim to be stewards of one of the very best investing systems devised, and this month we want to focus your attention on two features.

First, our Special Feature this month is “Undervalued Companies with Low Price-to-Book Value Ratios.” This happens to be the very best performer of our five rotating special features, so it’s worth a careful look.

Second, over on our back four pages, you’ll see we’ve squeezed in one more column on the far right, and labeled it, “Roy Says.” Under it, you’ll find each of our 250 highest ranked Wise Owl stocks labeled Buy, Hold or Sell. Sell applies to highly rated stocks that we’ve recommended selling in this and previous issues. Buy applies to any stocks we’ve recommended buying in this and previous issues. And Hold applies to the rest. Obviously, there are limitations to this sort of simplification, and in no way do we intend this new column to be a replacement for careful study of the data.  But we do recognize that you have time constraints, and we hope that this addition helps you more quickly find what you’re looking for in your pursuit of expert guidance on investing in undervalued stocks.

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