New Era Value Investing – Nancy Tengler

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A unique guide that combines the best of traditional value theory with an innovative approach to assessing value in low or non-dividend paying stocks

In the 1990s, America’s focus on productivity and innovation led to huge gains in technology, communication, and healthcare stocks, and contributed to the transformation of the U.S. stock market from a value (dividend-paying orientation) to a growth (nondividend-paying) bias. During this time, forward thinking value managers began to develop analytical tools for valuing nondividend paying stocks. These tools allowed them to evaluate and identify the best investments in both traditional and nontraditional value sectors. At the forefront of this movement was author Nancy Tengler who, along with Noel DeDora, developed “Relative Value Discipline,” an approach-which combines two proven methods for valuing growth stocks: Relative Dividend Yield and Relative-to-Price Sales. The combination of these approaches allows individuals to invest across the investment universe regardless of dividend policies. New Era Value Investing introduces the proven method known as Relative Value Discipline by combining the excitement of developing a new investment discipline with the lessons learned through the application of this new methodology in the real world. In addition to providing an insider’s look at an investment manager’s experience in adopting a new investment approach, this book creates a context for understanding the transformation of the U.S. economy, and offers expert insights beyond those of traditional value theory.

Value investing has come a long way, from Graham and Dodd to Warren Buffett.

Traditionally, value investors seek to identify high-quality, income-generating companies that are currently selling at less than their true value. But in the 1990s, America’s focus on productivity and innovation led to huge gains in technology, communication, and healthcare stocks, transforming the U.S. stock market from a value (dividend-paying orientation) to more of a growth (nondividend-paying) bias. This market environment has challenged value-oriented investors who are dependent on yield or relative yield to find a discipline that can identify under-valued stocks.

In New Era Value Investing: A Disciplined Approach to Buying Value & Growth Stocks, author and investment expert Nancy Tengler addresses this “new era” in value investing by introducing you to an innovative investment strategy called “Relative Value Discipline” (RVD). This discipline will allow you to identify undervalued stocks by combining a more traditional value approach with a new methodology that focuses on identifying undervalued high-quality stocks that do not pay dividends.

New Era Value Investing lays the foundation for RVD by first discussing the cornerstones of this methodology:

• Relative Price-to-Sales Ratio (RPSR), a solid value approach to investing that allows investors to participate in technology and other fallen-angel growth stocks
• Relative Dividend Yield (RDY), which provides a good comparative tool for evaluating dividend-paying stocks
• The critical Twelve Fundamental Factors process used to evaluate a stock before investing in it

After a comprehensive discussion of the nuts and bolts of this innovative investment discipline, New Era Value Investing provides case studies that illustrate the application of this new methodology in the real world. You’ll gain valuable knowledge from a variety of examples including oil, pharmaceutical, technology, consumer, bank, and other classic fallen-angel growth stocks. You’ll also learn how to pull everything together by constructing a value-driven portfolio using RVD.

If you are looking for a way to apply value investing to the new stock market rising around us, you have found it. Relative Value Discipline allows professional as well as individual investors to invest in a wide range of stocks regardless of dividend policies. Filled with in-depth insight and expert advice, New Era Value Investing will enable you to enhance your own or your institution’s investment decisions, and achieve the elusive goal of superior long-term investment returns.