This week, we highlight the performance of the Enterprise Multiple Shadow Stock Portfolio.
Shadow stock portfolios
As discussed here, The Stock Market Blueprint is building and tracking a shadow stock portfolio for each Premium stock screen featured on the site.
The purpose of the shadow stock portfolios is to show investors how they can implement systematic investment strategies based on the qualifying stocks for each screen.
Additionally, the shadow stock portfolios are establishing track records for the strategies being implemented. These records provide actual investment results in real time.
Enterprise Multiple description
The Enterprise Multiple screen finds undervalued, out-of-favor stocks that are ripe for activist takeovers.
This strategy measures a company’s valuation based on its enterprise value to EBIT rather than the more common ratio of market capitalization to net earnings.
Performance of the Enterprise Multiple Shadow Stock Portfolio
One week after creating the shadow stock portfolios, the Enterprise Multiple portfolio owns one stock and is 10% invested.
The return on the invested capital is nearly 12.5%. The total return on the portfolio when including cash is 1.24%.
Here’s a breakdown of what the portfolio owns and how it’s performing:
Stock 1
- Company name: Ashford Hospitality Trust.
- Ticker symbol: AHT.
- Shares purchased: 204.
- Buy price: $4.90.
- Buy date: June 1 (closing price).
- Current price: $5.51 (closing price on June 8).
- Reinvested dividends: None.
- Total investment: $999.60.
- Current worth: $1,124.04.
- Return: 12.45%.
Portfolio:
- Investable cash: $9,000.40.
- Starting balance: $10,000.00.
- Current balance: $10,12.4.44.
- Total return: 1.24%.
Strategy rules
Check out the Shadow Stock Portfolios blog post to review the strict “buy” and “sell” rules followed by this strategy.
Build your own portfolio
By investing blindly based on what the screens tell them, systematic stock-selection strategies eliminate human emotions from the decision-making process.
Follow along every week to see the performance of a different featured shadow stock portfolio. Each strategy is highlighted every eight weeks.
The shadow stock portfolios invest only in the qualifying stocks on the screens available with Premium membership. Basic membership screens display a limited number of stocks with certain market caps.
You can implement these strategies yourself by upgrading to Premium. Start your risk-free 14 day trial now to access the Premium stock screens.
Mitchell Mauer is the founder of TheStockMarketBlueprint.com. The Stock Market Blueprint is a free site that finds value stocks for investors building long-term wealth. The site’s investment philosophy is anchored in principles established by Benjamin Graham and his most reputable followers over the last 100 years.
(This article appeared first on The Stock Market Blueprint Blog.)
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