BeanScreen for July 1, 2012

• Posted by Danny
• on July 1st, 2012

Of the 413 companies that made the cut for July, these 20 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 its number of consecutive months on the list and % return (without dividends re-invested) 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.

 

Stock	Score	Buy Signal	Industry	Cons. Months in WSB20	% Return (no divy)
1. CF	73.3	✔	Agricultural Chemicals	5	+4.2
2. AAPL	72.8	✔	Personal Computers	12	+49.6
3. NTES	72.6	✔	Internet Software & Services	10	+54.2
4. RES	72.4	✔	Oil & Gas Equipment/Services	12	-24.5
5. QCOR	71.4	✔	Biotech	3	+18.6
6. LULU	70.3	✔	Textile Apparel	6	-5.5
7. RGR	70.0	✔	Sporting Goods	5	-3.9
8. SYNT	69.9	✔	Information Technology Services	4	+8.4
9. EZPW	69.8	✔	Consumer Finance	35	+75.5
10. HITK	69.3		Generic Drugs	15	+17.1
11. TEO	69.0		Diversified Communications	1	0
12. PCLN	68.7	✔	General Entertainment	3	-12.7
13. INTC	68.5	✔	Semiconductor	6	+0.9
14. CEO	68.2		Independent Oil & Gas	22	+3.6
15. TNH	68.1		Agricultural Chemicals	8	+32.3
16. ISRG	67.7	✔	Medical Appliances & Equipment	2	+5.9
17. CHL	67.4		Wireless Communications	4	-0.7
18. BKE	67.4		Apparel Stores	35	+49.6
19. BRLI	67.2		Medical Labs & Research	5	+30.5
20. TRLG	67.2	✔	Textile Apparel	2	-1.2

 

In: TEO             Out: GRMN

 

With links and stuff, courtesy of @koolaidluke.

The 2nd Twenty (21-40)

The Farm System (41-100)

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.

 

 

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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