BeanScreen for January 1, 2013

• Posted by Danny
• on December 31st, 2012

Of the 396 companies that made the cut for January, these 30 ranked highest. This is not a buy list, only a “fundy health” index…with a splash of momentum (relative strength).

In the table below, each stock’s WSB score is noted, along with the number of consecutive months on the list and % return during that time (now adjusted for dividends, splits, etc.). Stocks checked off in the Buy Signal column may be ripe for purchase this month.

To bring in the new year we’ve tweaked the BeanScreen a bit. After doing some back-testing and picking the brains of some great minds at Stocktoberfest a couple months ago, we think the following adjustments will help improve the screen over time:

• Profit Margin category weighting increased from 15% to 20%
• Price Ratios lowered from 15% to 10%
• Momentum bumped up from 12% to 15%
• ditched Management Efficiency and Miscellaneous categories altogether

We also replaced the monthly return tracker with our 2013 Buy List. This will better reflect the stocks we like most for a “buy and kinda hold” portfolio. Its performance versus the SPDR ($SPY) will be tracked over the next calendar year.

Going on our 4th year as a member of the StockTwits community, we have learned sooo much from all the amazing traders and investors who contribute on a regular basis. Their sharing of ideas and financial knowledge has influenced our approach and strategy greatly over the last few years. We have definitely gotten more out of it than we have put in, and are grateful to continue occupying our little corner of the ST trading floor.

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

 (as of 1/29/13)

Stock	Score	Buy Signal	Industry	Cons. Months	% Return
1. CF	78.2	✔	Agricultural Chemicals	11	+24
2. CEO	73.1	✔	Independent Oil & Gas	28	+14
3. LULU	73.1	✔	Textile Apparel	12	+11
4. QCOM	71.0	✔	Communication Equipment	9	+0.6
5. RGR	70.8	✔	Sporting Goods	11	+28
6. CHL	70.8	✔	Wireless Communications	10	+4.1
7. ATW	70.7	✔	Oil & Gas Drilling/Exploration	2	+16
8. CYOU	70.6	✔	Multimedia & Graphics Software	3	+23
9. CPA	69.9	✔	Regional Airline	3	+19
10. RES	69.9		Oil & Gas Equipment/Services	18	-2.9

11. NVO	69.3	✔	Drug Manufacturer	5	+17
12. PCLN	69.0		General Entertainment	9	-8.0
13. SYNT	69.0		Business Services	10	+6.2
14. JCOM	68.9	✔	Internet Software & Services	2	+5.1
15. AAPL	68.5		Personal Computers	18	+18
16. QCOR	68.3	✔	Biotech	9	-42
17. MYGN	67.6	✔	Medical Research Services	2	-3.8
18. ISRG	67.1		Medical Appliances & Equipment	8	+9.8
19. MA	66.7		Business Services	2	+6.1
20. ABV	66.6	✔	Beverages	1	+11

21. TNH	66.5		Agricultural Chemicals	14	+64
22. FCFS	66.4	✔	Consumer Finance	3	+20
23. TEO	66.1		Diversified Communication Services	7	+31
24. FAST	65.9	✔	General Building Materials	1	+6.1
25. EZPW	65.8		Consumer Finance	41	+70
26. TER	65.7	✔	Semiconductor Equip & Services	1	-3.6
27. CALM	65.6		Food	5	+5.2
28. BIDU	65.4		Internet Info Provider	1	+9.1
29. INTC	65.0		Semiconductor	12	-17
30. AMSG	64.8		Hospitals	1	+5.1

 

In:  ABV, FAST, TER, BIDU, AMSG

Out:  WDC, BKE, BRLI, NTES, NEU

 

2013 Buy List

Consecutive Months Tracker

 

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

Stocks in WSB30 and ST50 (updated weekly) – none

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 categories (with weighting) that contribute to a stock’s WSB score:

• 25% Growth Rates
• 20% Profit Margins
• 15% Financial Condition
• 15% Investment Returns
• 15% Momentum
• 10% Price Ratios

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.

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.

Here’s a quick video demo:

(Zoom in for better view)

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

 

disclosure:  as of 12/31/12, we’re long CF, CEO, LULU, QCOM, CHL, RES, PCLN, SYNT, AAPL, QCOR, ISRG, FCFS, EZPW, INTC, AMSG

 

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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