Short Seller James Montier is now Bullish, go SPY

Well-regarded short-seller James Montier has "Never Been More Bullish" according to Bloomberg.  So what is he buying? Let's review his shopping list.

S&P 500 stocks that Montier characterizes as “deep value opportunities” based on profit and dividend yields, debt levels and price relative to earnings, here is the list:

Allegheny Technologies Inc. (ATI)
Carnival Corp. (CCL)
Chevron Corp. (CVX)
ConocoPhillips (COP)
Cummins Inc. (CMI)
Dow Chemical Co. (DOW)
Gap Inc. (GPS)
Illinois Tool Works Inc. (ITW)
Ingersoll-Rand Co. (IR)
KLA-Tencor Corp. (KLAC)
Marathon Oil Corp. (MRO)
Molex Inc. (MOLX)
Nucor Corp. (NUE)
Tesoro Corp. (TSO)
Valero Energy Corp. (VLO)

Those tickers listed alone:
ATI,CCL, CVX, COP, CMI, DOW, GPS, ITW, IR, KLAC, MRO, MOLX, NUE, TSO, VLO

The Standard & Poor’s 500 Index is “distinctly cheap” because it trades for 15.4 times the 10-year moving average of its companies’ profits, compared with an average of 18 for the U.S. market since 1881, London-based Montier wrote in a research note today. Fifteen stocks in the U.S. index, from Chevron Corp. to Gap Inc., pass his test for “deep value,” while a tenth of shares in Europe and a fifth in Asia qualify.

Just play the SPY if you want to go his theory, if the S&P 500 is going to recover, there's no safer way to play it.

SPDR Trust, Series 1(Public, AMEX:SPY)
SPDR Trust, Series 1 (the Trust) is a unit investment trust. The Trust is an exchange-traded fund created to provide investors with the opportunity to purchase a security representing a proportionate undivided interest in a portfolio of securities consisting of substantially all of the common stocks, in substantially the same weighting, which comprise the Standard & Poor's 500 Composite Price Index (the S&P Index).

“This is a value investor’s version of heaven,” wrote Montier, SocGen’s global equity strategist. “From a bottom-up perspective, the equity market is offering some excellent companies at truly bargain prices for those with the fortitude to shut their eyes, or at least switch off their screens and buy.”

SOURCE: http://www.bloomberg.com/apps/news?pid=email_en&refer=home&sid=aUZdvU7elPDY