The Financial Grimes: Value stocks could outperform again

This top City analyst reviews the financial sector stocks making headlines today.

Jeremy Grime spent 15 years as a financial sector analyst, working at Altium Capital, RBC Capital Markets, Panmure Gordon and most recently as Director of Research at finnCap. Jeremy is also a qualified accountant.

Jeremy's blog is written with more experienced investors in mind. However, we have included a brief glossary at the bottom of the page to help those less familiar with some of the language used. For more on key financial metrics and valuation ratios click here.

It has been useful to take a couple of weeks out. Holiday reading included "The thieves of Threadneedle Street" where a rather exciting forgery scam centred on the printers in Paternoster Row.  Some things change in the city. There are no printers there now. This morning Rosenblatt launches a new White Collar Fraud & Financial Crime division, while the market leader in 1873 was Pinkerton's.

Week Ahead

• Last week results were largely positive with Miton (LSE:MGR) and Alpha FX (LSE:AFX) being the stand out performers. Both of these shares had previously fallen over the last 6 months as the small cap market has adopted the default "gloomy view". With continuing low rates, a dysfunctional parliament and value in equities at the moment I find myself suspecting that value stocks could outperform again.

• This week I am expecting the following. I have pointed out my anticipation of results. In the case of Sanne Group (LSE:SNN) and XPS Pensions (LSE:XPS) a sofa is necessary. The Sunday Times tells us to expect the take over of Smith & Williamson by Tilney this week.