BeanScreen for November 1, 2011

• Posted by Danny
• on November 1st, 2011

Of the 418 companies that made the cut for November, these 20 ranked highest for their overall fundamental strength. This is not a buy list, only a “fundy health” index. Each stock’s WSB score is noted, along with number of consecutive months on the list and percent return (without dividends re-invested) during that time.

Follow the Consecutive Months Tracker in real-time here.

This month’s returns.

Stock	WSB Score	Industry	Cons. Mos in WSB20	% Return (no divy)
1. HITK	76.2	Generic Drugs	7	+28.4
2. CEO	73.8	Independent Oil & Gas	14	-2.9
3. RES	72.3	Oil & Gas Equip/Services	4	-21.4
4. EZPW	71.3	Consumer Finance	27	+107.8
5. GRMN	71.1	Scientific & Tech Instrument	51	-66.2
6. AZN	69.7	Drug Manufacturers	18	+13.4
7. TRLG	69.3	Textile Apparel	29	+52.1
8. DO	69.3	Oil & Gas Drill/Exploration	6	-11.0
9. NTES	68.9	Internet Info Provider	2	+24.1
10. BKE	68.4	Apparel	27	+68.5
11. RIMM	68.4	Diversified Communications	14	-58.5
12. BRLI	67.6	Medical Labs/Research	1	0
13. ATW	67.4	Oil & Gas Drill/Exploration	3	+1.5
14. ARLP	67.1	Industrial Metals & Minerals	9	-1.7
15. MED	67.1	Food Products	14	-39.4
16. BHP	66.8	Industrial Metals & Minerals	3	-8.3
17. BVN	66.7	Gold Mining	1	0
18. CHL	66.5	Wireless Communications	1	0
19. AAPL	66.3	Personal Computers	4	+3.7
20. NPK	66.2	Appliances	24	+2.5

 

In: BRLI, BVN, CHL              Out: MSFT, VALE, VPRT

The 2nd Twenty (21-40)

The Farm System (41-100)

The BeanScreen is based 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 fundamental score:

• Growth Rates – 25%
• Price Ratios – 20%
• Profit Margins – 15%
• Financial Condition – 15%
• Investment Returns – 15%
• Management Efficiency – 5%

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 benchmarked and scored using our custom formula. Other secondary parameters (5% weighting) are measured as well, such as Relative Strengths, Insider Ownership and Short Ratios.

The BeanScreen is not a perfect system. It cannot detect value traps 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 six months to two years. Our goal is to sift out these stocks and then hunt for value plays.

disclosure:  we currently own all stocks mentioned above except BRLI, NTES, and VPRT

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.

blog comments powered by Disqus