BeanScreen for January 1, 2013

  • Posted by
  • 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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