Sample Portfolios

There are various ways to value a company. These include PE, PEG, PB, ROE and PS.

I am going to construct sample portfolios that cover some of these aspects for all stocks over 500 Million capitalisation. I chose this range as it leaves us a field of approx 300 shares on the Australian Stock Exchange.

Each Portfolio will contain 5 stocks that meet the criteria.

Portfolio 1 : Low Price to Earnings Ratio.
For this portfolio I took those 5 lowest PE stocks which had earnings above 0. The stocks selected and the Price is :

• $1.12 - AUS Auselect Limited
• $0.98 - MFT MFS Diversified Trust
• $1.43 - RAB Rabinov Diversified Property Trust
• $0.35 - GIR Giralia Resources NL
• $1.05 - FPG Forest Place Group Limited

Portfolio 2 : High Price to Earnings Ratio.
For this portfolio I took those 5 Highest PE stocks which had earnings above 0. The stocks selected and the Price is :

• $0.68 - BOC Bougainville Copper Limited
• $0.82 - IRN Indophil Resources NL
• $2.70 - BSG Bolnisi Gold NL
• $0.36 - GOG Great Artesian Oil & Gas Limited
• $0.67 - CNT Centamin Egypt Limited

Portfolio 3 : Low Price to Book Ratio.

For this portfolio I took those 5 lowest PB stocks which had earnings above 0 . The stocks selected and the Price is :

• $0.58 - AMH AMCIL Limited
• $1.32 - GMI Global Mining Investments Limited
• $1.05 - FPG Forest Place Group Limited
• $0.58 - WOTCA Westpac Office Trust
• $1.20 - AVM Anvil Mining Limited

Portfolio 4 : High Price to Book Ratio.
For this portfolio I took those 5 Highest PB stocks which had earnings above 0 . The stocks selected and the Price is :

• $0.38 - EPY E-pay Asia Limited
• $78.97 - GOLD Gold Bullion Limited
• $0.95 - IAU Intrepid Mines Limited
• $21.65 - LEI Leighton Holdings Limited
• $22.40 - NCM Newcrest Mining Limited
• $1.78 - SRK Strike Resources Limited

Portfolio 5 : Low Price to Earnings Growth Ratio.

For this portfolio I took those 5 lowest PEG stocks which had earnings above 0. The stocks selected and the Price is :

• $3.34 - OXR Oxiana Limited
• $1.49 - AZA Anzon Australia Limited
• $0.95 - IAU Intrepid Mines Limited
• $3.03 - AWE Australian Worldwide Exploration Ltd
• $0.19 - SMO SMC Gold Limited

Portfolio 6 : High Price to Earnings Growth Ratio.
For this portfolio I took those 5 highest PEG stocks which had earnings above 0. The stocks selected and the Price is :

• $0.82 - IRN Indophil Resources NL
• $5.05 - FXJ John Fairfax Holdings Limited
• $13.51 - ZFX Zinifex Limited
• $4.30 - MFS MFS Limited
• $8.80 - FMG Fortescue Metals Group Ltd

I will keep an eye on these portfolios and do some analysis after a fe months ... I believe the lower PE, lower PB and Lower PEG should be the better performing stocks. I actually think the low PEG should be the best sample portfolio.

Lets see how it goes ...

Good luck investing.