Research from Fama and French, with the 3 factor model regression (Farma and French also looks into momentum as a 4th factor), offers empirical data that suggests smaller stocks with lower price-to-book values have higher excess gains associated with them. They state the reason for this as a ?risk premium? or a bigger reward for higher speculation. Also, in every country but Japan they found excess gains to be associated with momentum. This is where stocks that outperform the market over the past 52 weeks (or 3 months and 6 months) continue to do so over the next year. (Size, Value, and Momentum in International Stock Returns, Fama and French, 2011)
The following scan will look at small cap (and under) value stocks for those that want a shot at some of the excess gains while potentially accepting more price volatility. Our scan will include 6 month and 3 month
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Bali Rodriguez Izabella Miko Cameron Diaz Sofía Vergara Nicole Richie
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