Though value investors have been some of the most
successful investors out there, finding good
stocks at bargain pricesis far from easy. Though markets
aren't as efficient as some university professors may tell
you, they generally do a pretty good job pricing stocks. So
while there are
good deals out there, you're going to have to break a bit
of a mental sweat if you want to make sure that you're
investing in the stock equivalent of Brad Pitt, not Kato
Kaelin.
Fortunately for us, in the search for stock market values,
we have the 140,000 members of
The
Motley Fool's CAPS communityvoting on which stocks are
true stars and which are just posers. To gather ideas, I've
dug up a handful of companies valued at less than twice their
book value-- a
measure often used by value investors. Below is a selection
of companies that fall into this category; you can
run the same screenthat I did on the CAPS screener.
Company
Book Value Multiple
1-Year
Stock Performance
CAPS Rating
(out of 5)
First Marblehead (NYSE: FMD)
0.5
41.7%
****
Hurco Companies (Nasdaq: HURC)
0.9
(7.1%)
*****
Toyota Motor (NYSE: TM)
1.2
18.4%
***
Citigroup (NYSE: C)
1.3
(64.8%)
**
Goldman Sachs (NYSE: GS)
1.7 Continued... |