BeanScreen for August 1, 2011

• Posted by Danny
• 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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