BeanScreen for August 1, 2011

  • Posted by
  • on July 31st, 2011

 

Of the 446 companies that made the cut for August, these 20 ranked highest for overall fundamental strength.  This is not a buy list, only a “fundy health” index.  Each stock’s average WSB score is noted, along with number of consecutive months on the list and percent return during that time.

Follow the Consecutive Months tracker in real-time here.

This month’s returns.


Stock WSB Score

Industry

Cons. Mos in WSB20

% Return (no divy)

1. EZPW
72.3 Consumer Finance 24 +148.9
2. CEO
72.2 Independent Oil & Gas 11 +14.4
3. GRMN
71.6 Scientific & Tech Instr 48 -68.0
4. HITK 70.8 Generic Drugs 4 +2.3
5. TRLG
69.9 Textile Apparel 26 +51.2
6. RIMM 69.8 Telecom Equipment 11 -48.7
7. BKE 69.5 Apparel Stores 24 +67.5
8. MED
68.9 Food Products 11 -28.9
9. NPK 68.9 Appliances 21 +9.2
10. ARLP
68.1 Industrial Metals & Minerals 6 -0.6
11. LHCG 67.8 Home Healthcare 18 -24.3
12. SYNA 66.9 Computer Peripherals 6 -16.7
13. DO
66.7 Oil & Gas Drill/Exploration 3 -7.9
14. RES
66.7 Oil & Gas Equip/Services 1 0
15. TNH
66.6 Agricultural Chemicals 3 +21.5
16. FCFS 66.2 Consumer Finance 4 +10.3
17. AZN 66.2 Drug Manufacturers 15 +14.8
18. AAPL 66.0 Personal Computers 1 0
19. MSFT
66.0 Application Software 5 +7.9
20. NEU 66.0 Specialty Chemicals 5 +3.7

 

In: RES, AAPL              Out: CHL, VALE

The 2nd Twenty (21-40)

The Farm System (41-100)


The BeanScreen is based on fundamentals.  Each month hundreds of companies are screened and scored on a fundy health index ranging from 0-100.  Over time an average score and rank is compiled for a select group of stocks.  The higher the score, the stronger a company’s overall fundamentals.  Here is the breakdown:

70-100 = very strong

60-69 = strong

40-59 = average

0-39 = weak

There are six primary categories that contribute to a stock’s fundamental score:

  • Growth Rates
  • Price Ratios
  • Profit Margins
  • Financial Condition
  • Investment Returns
  • Management Efficiency

Within each category are an assortment of parameters that are uploaded into the BeanScreen via Randy Hamerlink’s stock market functions add-in program for Excel.  The data is then benchmarked and scored using our custom formula.  Other secondary parameters are measured as well, such as Relative Strengths, Insider Ownership and Short Ratios.

The BeanScreen is not a perfect system.  It cannot detect value traps or fraud.  It is strictly an idea generator, a tool in our investing shed.  Backward looking by nature, it only determines those companies that have appeared to exhibit healthy fundamentals over the last six months to two years.  Our goal is to sift out these stocks and then hunt for value plays.

 

Recent shows from the Brewing Wealth archives:

7/25/11 – First Cash Financial (FCFS)

7/18/11 – Hi-Tech Pharmacal (HITK)

7/4/11 – July WSB20 rundown

6/27/11 – Hi-Tech Pharmacal (HITK)

6/13/11 – Apple (AAPL)

6/6/11 – Medifast (MED)

5/30/11 – The Buckle (BKE)

 


 


The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

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