Investing’s Odd Couple: Value and Momentum

by Kevin Truitt

For value investors, the sweet spot in investing is being able to buy an undervalued stock right before its value is recognized by the market and just before its stock price begins to take off.

But how can a value investor tell when a stock is in the sweet spot? The answer, according to Brian Nelson, president of investment research company Valuentum Securities, is to identify stocks with good value that are just starting to exhibit good technical/momentum characteristics.

Doing so helps an investor avoid:

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Kevin Truitt earned an MBA in corporate finance from the DePaul University’s Kellstadt Graduate School of Business. He has over 15 years of commercial banking experience at First Chicago, BMO Harris and National City Bank. Kevin currently serves on the Chicago AAII chapter’s board of directors.


Discussion

Fernando Robles from Florida posted 9 months ago:

Like this article. For me, when and what to buy has always been a problem. This article helps


Jon Silverberg from New York posted 9 months ago:

I'm a mutual fund and ETF investor, exclusively. Any suggestions for how to combine these 2 strategies in that world?


Terrence Kulasa from posted 9 months ago:

is there a stock screen that uses these criteria to select stocks?


Frank Klamik from Wisconsin posted 9 months ago:

Bill Gunderson Management, uses this system.He has three portfolios and covers mutual funds and ETF's. It's worth a look


Gerald Scott from Michigan posted 9 months ago:

Where do I find the answer to Terrence's quwestion ? i.e. " Is there a stock screen...."


Jean from posted 9 months ago:

The First Cut column in this issue describes a screen based on the concepts in this article. It's linked under Related Articles above on the right side.
http://www.aaii.com/journal/article/nelsons-combination-of-value-and-momentum


Lee Martin from California posted 7 months ago:

The fundamental on QSTR looked good so I bought in about a month ago. The stock is up about 30% for me. It looks like it still has room to run.


Joost Tanis from Illinois posted 5 months ago:

It would be nice feature to have the moving average variables in Stock Investor Pro


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