I bought $MU (-4,94%) at 65 € per stock and I’m still holding. When I bought the stock, it was the most undervaluaded stock in the $XDEV (-0,27%) and it’s still like this ! Meanwhile something straordinary happened. Now MU it’s also in the first seat of $XDEM (-0,17%) . The best value investors understand that it is not enough to buy a stock simply because it is undervalued. You also need to identify companies that the market is likely to become interested in over time. In other words, the goal is to buy stocks that are both cheap and gaining attention.
My idea is to buy stocks that rank highly in both value and momentum indexes, and then sell them when they fall significantly in either ranking. The reasoning is that, if a stock drops in the value ranking, the market may have already re-priced it closer to its fair value. If it drops in the momentum ranking, it may indicate that investor interest is fading.
It would be fascinating to backtest this strategy by analyzing the historical constituents and rankings of global value and momentum indexes over the past several decades. Unfortunately, I have not been able to find historical holdings data for these indexes. Can you help me in this ?