Globe says ADF, others fit Graham's investing strategy

2013-01-08 08:28 ET - In the News

See In the News (C-DRX) ADF Group Inc

The Globe and Mail, using the Ben Graham strategy of stock investing, looks for stocks trading below their liquidation value in its Tuesday edition. The Globe's Robert Tattersall writes that Strategy Lab contributor Norman Rothery pondered whether it is better to buy all of the stocks that pass the screen, or simply view them as prospects, which require additional analysis? He found it was better not to fine-tune a screen's output. An equal weight investment in stocks that fit the Ben Graham strategy as of Jan. l, 2012, outperformed the S&P/TSX Composite's 4-per-cent gain with a return of 18 per cent for the entire year. Mr. Tattersall notes that the strategy requires a strong stomach: Five of the 21 stocks in Mr. Rothery's screen declined by 50 per cent or more during the year. Enthusiasts of the Ben Graham screen who can live with these hazards will be interested in the much shorter list of a dozen Canadian stocks that qualify going into 2013, courtesy of David Sandel of Simcoe Partners in New York. The stocks are ADF Group, Gobimin, Bri-Chem, Canada Flourspar, China Health Labs & Diagnostics, Canada Strategic Metals, BENEV Capital, Goodfellow, Hartco, Hanfeng Evergreen, Cooper Park and Migao.