Tack

12 Cheap Growth Companies

Thanks for the useful analysis.

However, I was taught long ago that when shares of companies look enticing --as for example when an issue has a higher-than-normal yield-- one has to distinguish between those companies that are merely undervalued and those which have been devalued because of changes to their future prospects.

Unfortunately, many of the healthcare firms listed face grim futures if the government's final approved plan includes any truly operable public option. If such occurs, then, the health insurers will face a rapidly declining insurance pool, as U.S. companies will offload corporate-supplied, privately-insured health plans on the government. The effect of this shift will disrupt the economies of scale for the private health insurance industry, leading to rapid contraction in its business, including the merger and/or failure of various firms.

So, it's not obvious in certain cases, above, that passing certain statistical tests positions these issues for future gain. In fact, identifiable real-world, model-changing threats may see many of them decline further, and significantly.