BeanScreen for October 1, 2011

  • Posted by
  • on September 30th, 2011

Of the 421 companies that made the cut for October, 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
73.6 Generic Drugs 6 +21.5
2. CEO
73.4 Independent Oil & Gas 13 -17.5
3. EZPW
72.5 Consumer Finance 26 +113.5
4. GRMN 71.0 Scientific & Tech Instr 50 -68.8
5. RES
70.0 Oil & Gas Equip/Services 3 -30.9
6. TRLG 69.8 Textile Apparel 28 +20.9
7. RIMM
69.2 Telecom Equipment 13 -58.3
8. BKE
68.7 Apparel Stores 26 +45.4
9. DO 67.5 Oil & Gas Drill/Exploration 5 -25.7
10. AAPL
67.5 Personal Computers 3 -2.4
11. MSFT 67.4 Application Software 7 -2.0
12. MED
67.1 Food Products 13 -40.5
13. BHP
67.0 Industrial Metals & Minerals 2 -22.0
14. NTES
67.0 Internet Info Provider 1 0
15. AZN
66.6 Drug Manufacturers 17 +5.0
16. VALE 66.5 Steel/Iron Ore 1 0
17. NPK 66.4 Appliances 23 -6.7
18. ATW 66.4 Oil & Gas Drill/Exploration 2 -18.4
19. VPRT
66.0 Business Services 1 0
20. ARLP 65.9 Industrial Metals & Minerals 8 -15.1

 

In: NTES, VALE, VPRT              Out: LHCG, TNH, SYNT

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 except NTES, VPRT, TNH and SYNT

 


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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