BeanScreen for August 1, 2012

• Posted by Danny
• on July 31st, 2012

Of the 412 companies that made the cut for August, these 30 ranked highest for their overall fundamental strength. This is not a buy list, only a “fundy health” index.

Starting this month the tracking list has been expanded to 30 stocks. We hope this will provide our followers with more ideas, insight and transparency.

In the table below, each stock’s WSB score is noted, along with its number of consecutive months on the list and % return (without including dividends) during that time. Stocks checked off in the Buy Signal column are those we believe may be ripe for purchase.

As always, do your own due diligence cuz we ain’t pros! The BeanScreen is just an idea creator.

Follow the Consecutive Months Tracker in real-time here.

This month’s returns.

 (as of 8/26/12)

Stock	Score	Buy Signal	Industry	Cons. Months	% Return (w/o divy)
1. CF	74.1	✔	Agricultural Chemicals	6	+11.6
2. NTES	72.2	✔	Internet Software & Services	11	+35.8
3. AAPL	71.8	✔	Personal Computers	13	+69.9
4. RES	70.5	✔	Oil & Gas Equipment/Services	13	-19.3
5. QCOR	70.4	✔	Biotech	4	-3.4
6. PCLN	70.1	✔	General Entertainment	4	-22
7. LULU	69.5	✔	Textile Apparel	7	+1.2
8. CEO	69.4		Independent Oil & Gas	23	-2
9. RGR	69.2		Sporting Goods	6	+5.6
10. SYNT	69.1	✔	Information Technology Services	5	+5.5

11. ISRG	69.0	✔	Medical Appliances & Equipment	3	-3.4
12. INTC	68.6		Semiconductor	7	-5.7
13. TRLG	68.4		Textile Apparel	3	-22.7
14. EZPW	68.0	✔	Consumer Finance	36	+73.2
15. HITK	67.6		Generic Drugs	16	+27.6
16. BKE	67.2		Apparel Stores	36	+63.3
17. TEO	67.0		Diversified Communications	2	-0.5
18. CHL	66.9		Wireless Communications	5	-2.8
19. BRLI	66.8	✔	Medical Labs & Research	6	+31.9
20. MYGN	66.7	✔	Research Services (Medicine)	2	+4.5

21. QCOM	66.7	✔	Communications Equipment	4	-2.2
22. TNH	66.6		Agricultural Chemicals	9	+33.8
23. JOY	66.5	✔	Farm & Construction Machinery	2	-2
24. WDC	66.3	✔	Data Storage Devices	1	+9.7
25. HLF	66.3	✔	Drug Related Products	1	-8.4
26. AZN	66.3		Major Drug Manufacturer	2	+5.7
27. CPA	66.1	✔	Regional Airlines	1	+0.6
28. JCOM	66.1		Internet Software & Services	2	+6.5
29. MNST	66.1		Beverages (Soft Drinks)	1	-10
30. AHGP	66.0		Non-metallic Mineral Mining	1	-0.3

 

In:  WDC, HLF, CPA, MNST, AHGP            Out:  MSFT, SCLN, BIDU, FAST, FCFS

 

Farm System (31-100) – the best of the rest.

WSB30 Fundamentals – the stats we follow closest in finding our crème de la crème.

Stocks in WSB30 and ST50 (updated weekly) - SYNT, AAPL, CF, LULU

With links & stuff – courtesy of @koolaidluke

The BeanScreen is based primarily 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

Below are the seven categories (with weighting) that contribute to a stock’s WSB score:

• Growth Rates – 25%
• Price Ratios – 15%
• Profit Margins – 15%
• Financial Condition – 15%
• Investment Returns – 15%
• Momentum – 10%
• Management Efficiency – 4%

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 bench-marked and scored using our custom formula. A few other secondary parameters (1% weighting) are measured as well, such as Insider Ownership and Short Ratios.

In creating the Buy Signal, we zero in on what we believe are the most critical aspects of a stock’s overall health: Growth Rates, Price Ratios, Profit Margins and Momentum. Deriving a sub-score from these four categories, we arrive at a threshold level that may reveal a buying opportunity for the next few months and beyond.

Here’s a quick video demo:

(Zoom in for better view)


The BeanScreen is not a perfect system. It cannot fully detect value traps (working on that!) 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 few months to two years. Our goal is to sift out these stocks and then hunt for potential value plays.

See what we’ve been up to lately at RebelMouse.

 

disclosure:  we currently own shares in CF, NTES, AAPL, RES, QCOR, LULU, CEO, ISRG, INTC, TRLG, EZPW, HITK, BKE, CHL, QCOM, AZN

 

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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