I received this e-mail address reesegroup.com. Below is an example of the goodies I found there. I have not subscribed yet. there is a 30-day trial period. And I have just sampled, not even used the trial period.
Analysis of IDC based on Reesegroup.com's selection and interpretation of the investment criteria published by William O'Neil (Author of How to Make Money in Stocks and Founder of Investors Business Daily)
Conclusion: No interest in IDC at this time
Look at the quarterly EPS change (This quarter vs. same quarter last year) (PASS) : The EPS growth for this quarter relative to the same quarter a year earlier for IDC, 244.0%, is above the minimum 18% that
this methodology likes to see for a "good" growth company. IDC would pass the first requirement.
Look at annual earnings growth (PASS) : This methodology looks for annual earnings growth above 18%, but prefers higher than 25%. IDC's annual earnings growth rate over the past five years of 21.80% passes
this test.
Look at the earnings consistency (FAIL) : According to this methodology, each year's EPS numbers should be better than the previous. One dip is allowed, but the following year's earnings should be a new high. IDC, whose annual EPS before extraordinary items for the last 5 years (from earliest to the most recent fiscal year) were -0.38, 0.78, -0.26, -0.72, 0.76, would not pass this criteria, as more than 1 dip is unacceptable to the methodology.
Look at the long-term EPS growth rate relative to growth in the latest 2 quarters (FAIL) : This methodology discourages investment in any company whose earnings growth in the latest 2 quarters has been less than half of the long-term earnings growth rate. IDC should be avoided, as earnings growth in the 2 most recent quarters (-23.5% for Q6 to Q2 and -244.0% for Q5 to Q1) have slowed substantially to a point less than its long-term growth rate of 21.8%.
Look at the current price level (FAIL) : Investors should avoid stocks that are not trading within 15% of their 52-week highs. IDC's current stock price ($4.438) is not within 15% of the 52-week high ($6.938), and, therefore, the stock would be looked at unfavorably until the price moves into the acceptable range.
Look at the 4 month S&P relative strength line (FAIL) : This methodology likes to see confirmation from this indicator when buying as a sign of a company's recently strong momentum. It shows a company's weekly performance in comparison to the overall market, as measured by the S&P 500. Look for a general upward trend in weekly relative strength, as the best stocks usually act better than the overall market. IDC's relative strength trend has been declining over the last 4 months. This a negative sign.
Look at the price performance compared to all other stocks (FAIL) : A company's weighted relative strength, which is the stock's price performance compared with the overall market over the past year, should be no less than 80, although above 90 is preferred. As long as all the other numbers are in check, these companies should continue to perform well over the next 3 months. IDC's relative strength of 24 is too low to pass the test.
Look for confirmation of at least one other leading stock in the industry (PASS) : Make sure that a company's industry is attractive by confirming that at least one other company in the industry has a relative strength above 80. There is confirmation in IDC's industry (Communications Equipment), as there are 82 companies that have a relative strength at or above 80.
Look for leading industries (PASS) : Buy stocks in top performing industries. Look at the number of companies within an industry that have a weighted relative strength above 80, and choose only the top 30% of those industries from which to select stocks. In another method, look for industries with the most stocks making new 52-week highs. IDC's industry (Communications Equipment) is currently one of the top performing industries, as it passes both of the aforementioned criteria.
Look to see if Long-term Debt/Equity has been decreasing (FAIL) : Companies who have consistently cut debt over the last 3 years, or who have no debt, are looked at favorably. IDC, whose Debt/Equity for the last 3 years (from earliest to the most recent fiscal year) was 4.0%, 4.0%, 35.2%, would fail this test.
Look at Return on Equity (PASS) : preferred companies must have a ROE of at least 17%. IDC's ROE of 101.4% is above the minimum 17% that this methodology likes to see, and therefore would pass the criteria.
Look at the shares outstanding (NEUTRAL) : Shares outstanding should be less than 30 million, as fewer shares mean bigger price jumps when demand surges. However, large companies are as acceptable if all the other numbers check out. IDC currently has 48 million shares outstanding. This is less favorable, but is still acceptable.
Look at the insider ownership (PASS) : Companies with the best prospects have strong insider
ownership, which we define as 15% or more. When there is strong insider ownership, management is more likely to act in the best interest of the company, as their interests are right in line with that of the shareholders. Insiders own 20.0% of IDC's stock. Management's representation is large enough and would pass this test.
Look for something new and/or of major significance in the business: When investing in a company, this methodology looks for some new excitement taking place in the business. Look for the release of major new products or services, which are currently adding to revenues, the implementation of fresh top-level managment, or significant favorable changes in industry conditions. Unfortunately, we are unable to come to a conclusion on this variable, but check out the REESE REPORT for the latest developments on IDC.
Look at the institutional ownership (PASS) : Some institutional ownership is preferred, but there is no indication that a large number of institutions is too many. Institutions own 28.2% of IDC's stock. Because there is some institutional ownership present, IDC would pass this test.
Conclusion: No interest in IDC at this time |
