Great to see another article by Kapitall at Seeking Alpha that factors corporate governance ratings into stock picking. In this case we’re looking at companies where the P/E ratio has fallen at the same time earnings have risen — to find cases where earnings may not be fully priced into undervalued stock.
The screen also eliminated all companies that didn’t get a “low risk” rating on all four corporate governance areas rated by the RiskMetrics Group: the board, the audit committee, the compensation committee, and shareholder rights.
Check out the 14 picks.
via 14 Companies With Rising EPS, Falling P/E, And Good Corporate Governance – Seeking Alpha, 8/5/2011.
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