BeanScreen for December 1, 2012

• Posted by Danny
• on November 30th, 2012

Of the 406 companies that made the cut for December, these 30 ranked highest for their overall fundamental strength. This is not a buy list, only a “fundy health” index.

In the table below each stock’s WSB score is noted, along with number of consecutive months on the list and % return (without including regular or special dividends) during that time. Stocks checked off in the Buy Signal column 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 12/28/12)

Stock	Score	Buy Signal	Industry	Cons. Months	% Return (w/o divy)
1. CEO	71.5	✔	Independent Oil & Gas	27	+11
2. SYNT	71.3	✔	Information Technology Services	9	-5.7
3. CALM	70.2	✔	Food	4	+11
4. CF	70.2	✔	Agricultural Chemicals	10	+7.3
5. LULU	69.7	✔	Textile Apparel	11	+18
6. QCOR	68.9	✔	Biotech	8	-40
7. CHL	68.8	✔	Wireless Communications	9	+5.8
8. ATW	68.3	✔	Oil & Gas Drilling/Exploration	1	-3.4
9. RGR	67.9	✔	Sporting Goods	10	+5.0
10. PCLN	67.1		General Entertainment	8	-20

11. TNH	67.0		Agricultural Chemicals	13	+32
12. AAPL	67.0		Personal Computers	17	+31
13. JCOM	66.9	✔	Internet Software & Services	1	+0.6
14. RES	66.9		Oil & Gas Equipment/Services	17	-23
15. NVO	66.8	✔	Drug Manufacturer	4	+3.3
16. CPA	66.6	✔	Regional Airline	2	+6.3
17. EZPW	66.3	✔	Consumer Finance	40	+47
18. QCOM	66.3	✔	Communication Equipment	8	-5.0
19. ISRG	66.2	✔	Medical Appliances & Equipment	7	-8.3
20. BKE	65.6		Apparel Stores	1	-16

21. INTC	64.9		Semiconductor	11	-23
22. MYGN	64.8	✔	Medical Research Services	1	-5.7
23. FCFS	64.5	✔	Consumer Finance	2	+8.2
24. NEU	64.5		Specialty Chemicals	2	-3.7
25. CYOU	64.4	✔	Multimedia & Graphics Software	2	+7.2
26. TEO	64.2		Diversified Communication Services	6	-4.4
27. NTES	64.1		Internet Software & Services	15	+11
28. BRLI	64.0		Medical Labs & Research	10	+41
29. WDC	63.9		Data Storage Devices	5	+4.3
30. MA	63.7		Business Services	1	-1.2

 

In:  ATW, JCOM, BKE, MYGN, MA           Out:  AZN, TRLG, GRMN, AHGP, EBIX

 

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

Stocks in WSB30 and ST50 (updated weekly) - LULU, MA

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 six main 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 – 12%

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 bench-marked and scored using our custom formula. A few other secondary parameters (3% weighting) are measured as well, such as Insider Ownership, Management Efficiency 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:  as of 11/30/12, we own the above mentioned – CEO, SYNT, CF, LULU, QCOR, CHL, RGR, PCLN, AAPL, RES, EZPW, QCOM, ISRG, INTC, TRLG, AHGP

 

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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