David Dreman : Looking Beyond the Bailout

Frightening as the markets look today, there will come a time when the liquidity crisis ends and today's prices for bank stocks look, in retrospect, like bargains.

Direct Link - Looking Beyond the Bailout

David Dreman on WealthTrack, 4-11-08

WealthTrack scans the globe for investment opportunities with OppenheimerFunds' Global Fund manager Rajeev Bhaman. He'll be joined by one of the deans of value investing, David Dreman and insurance expert Kim Lankford of Kiplinger's Personal Finance magazine.

Here is video link and transcript. (Only available for 2 weeks)
Or you can download the video (MP4 Format) here (Right Click and Save as..).

David Dreman Expects 'Major Losses' for Bond Insurers

David Dreman, the 71-year-old value investor, said he bought more shares of financial institutions after the industry's worst annual performance since 1990 created a ``major opportunity.''

The investor said he increased his stakes in Bank of America Corp. and Wachovia Corp. near the end of 2007. The Standard & Poor's 500 Financials Index tumbled 15 percent in the fourth quarter, giving it a 21 percent loss for the year. Bank of America fell 18 percent and Wachovia lost 24 percent in the final three months of 2007.

``There was panic in the market towards the end of the year and a lot of them went down far too much,'' Dreman, who oversees $20 billion at Dreman Value Management LLC, said during an interview with Bloomberg Television. ``There will be a turn, and this is probably a major opportunity in financials, probably one of the best in the last 15 years.''

• Article Link - David Dreman Expects 'Major Losses' for Bond Insurers.
• Video Link.

David Dreman : Tug of War

Last year I got the overall market call nearly dead-on. I forecast an S&P 500 total return of 5% (it did 5.5%) and a 10% correction along the way (the index was down 9.9% between Oct. 9 and Nov. 26). I predicted that large stocks would outperform their small- and midcapitalization brethren for the first time in seven years; the Russell 2000 index of smaller stocks underperformed the big-company S&P by 7.1 percentage points.

I didn't do well with my stock picks, which included a heavy dose of financial stocks. My 24 picks, including 7 held over from 2006, fell an average 7.5%, after hypothetical trading costs; had you put the same amounts on the same dates in the S&P (without costs), you would have had a gain of 1.2%. It was the end of a good streak for me. Over the preceding six years (through the end of 2006), my recommendations increased an average 7% annually, triple what shadow investments in the S&P 500 would have done. Put back dividends--these aren't included in the forbes computations--and I would have scored significantly better.

Article Link - Tug of War.

David Dreman : Seize The Day

Thomas Jefferson once said that banks are more dangerous than standing armies. Certainly with Chairman Alan Greenspan at the helm of the Federal Reserve this was the case. Under his leadership the Fed was instrumental in creating two bubbles. The dot-com bubble of 1995--99 was followed by a grand loosening of credit that resulted in a second bubble, the housing mania of 2001--05. Still, when a bubble implodes there are always good opportunities for folks who have the courage to take risks.
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For all my recommendations in this column, I advise acquiring positions gradually. Who knows how close we are to the bottom of this very jumpy market? Still, those who buy bank stocks should be well rewarded over the next couple of years.

Direct Link - David Dreman : Seize The Day.

David Dreman on WealthTrack

What more can the Federal Reserve do to limit the economic damage from subprime related bombshells? We'll ask PIMCO's Fed watcher and bond maven Paul McCulley. Plus find out where BlackRock's global investment star, Dennis Stattman is putting his money, and why value investing legend David Dreman believes some beaten down financials are becoming bargains.

Here is video link and transcript. (Only available for 2 weeks)
Or you can download the video (MP4 Format) here (Right Click and Save as..).

David Dreman on WealthTrack

David Dreman, Chairman of Dreman Value Advisors, was on Consuelo Mack WealthTrack.

Here is video link and transcript. (Only available for 2 weeks)
Or you can download the video here (Right Click and Save as..).

Bloomberg Interview with David Dreman

Bloomberg had an interview with David Dreman, CIO of Dreman Value Management LLC, on Aug. 13, 2007. The U.S. stock market is "pretty solid'' and offers "great opportunities,'' says value investor David Dreman.

I highlight some insightful points below:

• The market is pretty solid and fundamentals are good. Earnings are good and it's not overpriced. The economy is picking up.
• The major investment bankers are cheap. Will they go cheaper? I think so. If things turn around they could shoot up pretty quickly.
• We've always liked crises, not for our clients, but because it gives you some great opportunities.
  

Here is video link or you can watch directly below.