The Wall Street Bean
September WSB20
Your monthly guide to market fresh stock ideas
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September 1, 2010
12:18am EST
Of the 517 stocks that made the cut for September, these 20 companies ranked the highest for their overall fundamental strength. Credit Services company EZCorp claimed the top spot for the 7th consecutive month. Since we recommended EZPW in August, October and November of last year, it has gained +42.1%, +31.6% and 38.6%, respectively.
We had quite a shakeup in the WSB20 this month, with perhaps the most turnover we have seen in the index since last summer. Dropping out of the top 20 this month are WRLD #21, JST #24, DO #26, and BVN #30. Replacing them are ENDO, CHL, ARLP and ATW.
Jinpan (JST) took the biggest tumble, as their fundamentals have been steadily falling over the last six months after back-to-back lackluster earnings reports. We still own shares in JST, but will consider scaling out on any near term price strength if the fundamentals continue to weaken. On the flip-side, Alliance Resource Partners (ARLP) made the strongest move up the rankings this month. An Industrial Metals and Minerals company, ARLP scored an impressive 62/85 in the BeanScreen for September.
Today we begin our new fiscal quarter, thus the WSB20 index will be rebalanced with our new list and tracked for the next three months. For the last quarter begun on June 1, the index lost -7.4%, compared to the S&P500 -3.7%, the DOW -1.2%, and the NASDAQ -6.3%. Our top performer during that time was FOSL +26.6%. Bringing up the rear is TRLG -36.5%. In our view, TRLG is currently a bargain for long term investors, pulling down a 60/85 in the BS as I type this.
*WSB20 index created on 06/01/09
In tracking the performance of the WSB20, each stock is initially given an equal weighting and monitored for three months. The index is rebalanced on the first day of each subsequent quarter (9/1, 12/1, 3/1, 6/1), with any gain or loss (including dividends) in value redistributed evenly among the current top 20 stocks.
Disclosure: The Bean currently owns shares in the above mentioned stocks: JST, JOSB, GRMN, BKE, SNDA, EZPW, CSKI, LHCG, CHL, MSTR, ENDP, CHL, WRLD, NE, ATW, DO, TRLG, AZN and BVN.
Please consult a licensed financial advisor before purchasing any stocks mentioned on this website.
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To eavesdrop on our daily chatter, check us out on StockTwits' Suggested Stream.
"Whistlin' Girl"
September 1, 2010
12:18am EST
Of the 517 stocks that made the cut for September, these 20 companies ranked the highest for their overall fundamental strength. Credit Services company EZCorp claimed the top spot for the 7th consecutive month. Since we recommended EZPW in August, October and November of last year, it has gained +42.1%, +31.6% and 38.6%, respectively.
We had quite a shakeup in the WSB20 this month, with perhaps the most turnover we have seen in the index since last summer. Dropping out of the top 20 this month are WRLD #21, JST #24, DO #26, and BVN #30. Replacing them are ENDO, CHL, ARLP and ATW.
Jinpan (JST) took the biggest tumble, as their fundamentals have been steadily falling over the last six months after back-to-back lackluster earnings reports. We still own shares in JST, but will consider scaling out on any near term price strength if the fundamentals continue to weaken. On the flip-side, Alliance Resource Partners (ARLP) made the strongest move up the rankings this month. An Industrial Metals and Minerals company, ARLP scored an impressive 62/85 in the BeanScreen for September.
Today we begin our new fiscal quarter, thus the WSB20 index will be rebalanced with our new list and tracked for the next three months. For the last quarter begun on June 1, the index lost -7.4%, compared to the S&P500 -3.7%, the DOW -1.2%, and the NASDAQ -6.3%. Our top performer during that time was FOSL +26.6%. Bringing up the rear is TRLG -36.5%. In our view, TRLG is currently a bargain for long term investors, pulling down a 60/85 in the BS as I type this.
Since its inception*, the WSB20 is up +20.2%, compared to a gain of +14.2% for the S&P500. The WSB20
is not a "buy" list. It is simply an index of companies that have
exhibited solid fundamentals over intermediate to long term time frames. We
track their performance collectively just to get a feel for how they
behave, irrespective of price entry, compared to the broader markets. To view possible values, check out the Bargain Bin.
The WSB40 index, begun on June 1, 2010, is tracked in the same manner as the WSB20, but on an annual basis. As of today the WSB40 has lost -2.7%, compared to the S&P500 at -3.7%.
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*WSB20 index created on 06/01/09
In tracking the performance of the WSB20, each stock is initially given an equal weighting and monitored for three months. The index is rebalanced on the first day of each subsequent quarter (9/1, 12/1, 3/1, 6/1), with any gain or loss (including dividends) in value redistributed evenly among the current top 20 stocks.
Disclosure: The Bean currently owns shares in the above mentioned stocks: JST, JOSB, GRMN, BKE, SNDA, EZPW, CSKI, LHCG, CHL, MSTR, ENDP, CHL, WRLD, NE, ATW, DO, TRLG, AZN and BVN.
Please consult a licensed financial advisor before purchasing any stocks mentioned on this website.
=====================================================================
To eavesdrop on our daily chatter, check us out on StockTwits' Suggested Stream.
"Whistlin' Girl"
