James Montier's Short Screen

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In May 2008 James Montier, fund manager at GMO, couldn't find opportunities to invest, he wrote an article about short selling: Joining The Dark Side: Pirates, Spies and Short Sellers. His research found that the ideal short candidates are the companies that have these three characteristics:

1. Stocks that are sold at high P/S ratio

2. Companies that have low Piotroski F-score

3. Companies that have double-digit asset growth.

He found that companies with any of these characteristics underperformed the market.

Considering this, we have created a James Montier Short Screen in our All-In-One Screener with these filters:

1. P/S ratio is higher than 90% of the companies in the industry

2. Piotroski F-score is 3 or less

3. Five-year average asset growth is higher than 10%.

With these filters we get the list of the stocks that meet the criteria:

Symbol Company Share Price ($) Market Cap (mil) F Score P/S
BTX BioTime, Inc. 3.996 197.3 1 45.4
CVM CEL-SCI Corporation 0.34 92.8 1 97.1
GERN Geron Corporation 1.7 223.2 1 91.6
SNT Senesco Technologies, Inc. 0.29 28.5 2 204
UQM UQM Technologies, Inc. 0.78 29.6 2 2.9
DXR Daxor Corporation 8.99 37.3 2 25.8
REFR Research Frontiers, Inc. 2.93 55.9 2 66
ACHN Achillion Pharmaceuticals, Inc. 6.51 474.7 2 1922
BPAX Biosante Pharmaceuticals Inc 1.35 25.2 2 57.9
HUSA Houston American Energy Corporation 0.8197 31.1 2 26.9
ECTE Echo Therapeutics Inc 1.46 57.6 2 128.9
CGEN Compugen Ltd. ( USA ) 3.56 123.3 3 110.6
HEB Hemispherx BioPharma, Inc 0.3587 47.2 3 292.8
SYNM Syntroleum Corp 0.64 64.4 3 15.3
DRQ Dril-Quip, Inc. 70.98 2894.7 3 4.8
GYRO Gyrodyne Company of America, Inc. 112.83 167.5 3 30.4
MOSY MoSys Inc. 3.24 128.6 3 9.1
CRUS Cirrus Logic, Inc. 38.07 2448.9 3 5.7
ADES ADA-ES, Inc. 23.36 230.2 3 4.3
CNQR Concur Technologies, Inc. 67.37 3519.5 3 10.1
RCKB Rockville Financial Inc 11.85 340.7 3 3.8
ETAK Elephant Talk Communications Inc. 1.31 156.2 3 4.8


Not surprisingly, the prices of many of these stocks are already at close to 52-week lows and almost all of them don't pay dividends.

We will monitor the performances of these stocks. The stocks are in the portfolio James Montier Short Screen .

This is the link to the screen .

Read More:
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing

Referenced Stocks: CNQR , CRUS , DRQ , GYRO , USA

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