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7 cheap recovery plays

My Late Bloomer screen has grabbed victory from the jaws of disaster with a 52 per cent total return last year and it has highlighted seven new recovery plays for the next 12 months
7 cheap recovery plays
  • The Late Bloomers screen has delivered a 52 per cent 12-month total return versus 24 per cent from the FTSE All-Share
  • The longer-term record is less impressive with 47 per cent over seven years versus 40 per cent
  • Is value investing back on top?

When I updated my Late Bloomers screen last year, I used almost the whole of my column to explain why I was doggedly sticking by my value-focused screens despite the chronically poor performance of the investment style. The palpable desperation so evident in my writing perhaps should have told readers something of much more worth than what I expressed: 'value' shares were set to rocket.

Indeed, since that snivelling apology of a screening column that I penned a year ago, the 19 shares highlighted by my Late Bloomers screen have delivered a 52 per cent total return compared with 24 per cent from the FTSE All-Share. That’s the thing with investment strategies, and often markets too, it’s just when it feels like it's time to throw in the towel that the reverse is most true. The desire to sell at such times is also one of the biggest arguments in favour of diversification to manage risk, as this can help guard against the danger of panic selling.

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