Released on: September 03, 2010, 7:31 am
Author: Saxo Bank
Industry: Financial
Saxo Bank, the specialist in online trading and investment, has launched a new monthly equity research publication entitled "Global Value Equity Strategy" focused on highlighting the most undervalued stocks from around the world. It will appear each month on the Equities section of www.tradingfloor.com.
The "Global Value Equity Strategy" will highlight a value portfolio on 30 of the most undervalued stocks from around the world according to a proprietary equity screening model. Each issue of the publication will included back testing results and performance evaluation of the live portfolio.
"One of the many advantages of such a value strategy is that the investment horizon is longer, usually one year or more, eliminating short-term volatility currently prevalent in equity markets," said Christian Blaabjerg, chief equity strategist at Saxo Bank. "Equity related investment letters are widely distributed on the Internet nowadays. Few of them, however, focus on undervalued securities."
The "Global Value Equity Strategy" report includes a brief introduction to value stocks, how to recognize them and why investing in them is likely to generate superior returns compared to widely used benchmarks. The phrases "growth stocks" and "value stocks" appear fairly often in financial reports and publications and the "Global Value Equity Strategy" explains that a growth stock is a company, often large and well-known, which has generated high and stable earnings growth over a longer period of time. Investors tend to value such stocks higher as they extrapolate historical growth into the future. The problem is that only few stocks are able to maintain such earnings growth for a long time and competition typically results in a slowdown, eroding margins and market share for growth companies. This seems to explain why they tend to be inferior investments.
In backtesting from the start of 2006, the Saxo Bank Global Value Equity Strategy outperformed its benchmark index by far in 15 out of 18 quarters, even when dividends are excluded.
About Saxo Bank
Saxo Bank is an online trading and investment specialist, enabling clients to trade Forex,
CFDs, Stocks / Equities, Futures, Options and other derivatives via SaxoWebTrader and SaxoTrader, the
leading online trading platforms. SaxoTrader is available directly through Saxo Bank
or through one of the Bank’s global partners. White label is a significant business
area for Saxo Bank, and involves customised and branding the Bank’s online trading
platform for other financial institutions and brokers. Saxo Bank has more than 120
white label clients and boasts thousands of clients in over 180 countries. Saxo Bank
is headquartered in Copenhagen with offices in Australia, China, the Czech Republic,
France, Greece, Italy, Japan, the Netherlands, Singapore, Spain, Switzerland, UK,
and the United Arab Emirates.
Media enquiries:
Kasper Elbjørn
Head of Group Public Relations
Saxo Bank
Saxo Bank Corporate Communications
Philip Heymans Allé 15
2900 Hellerup
Denmark
+45 3977 4300
www.tradingfloor.com