Jurgis and all,
I've subscribed to the AAII Stock Investor CD after not getting the data updates for over a year.
These are the companies that pass the screen and valuation measures. Basically the screens I use look for combinations of a) consistent growth in book value over 3 or 5 yrs, b) ROE requirements over 3 or 5 yrs, c) low debt d) consistent EPS growth e) consistent free cashflow. Not all combinations are used simultaneously, but passing companies are then exported and future share prices are estimated by extrapolating future book value, future ROE, future PE.
The following companies are the ones that I'll be looking
at going forward. While the screens were arrived at using Buffettology methods, not all remaining companies would be considered types of stocks typical of this investment style (some tech stocks pass), but I look at most of the larger mkt cap companies that pass from a valuation standpoint.
Alot of the companies "passing" have been discussed in the past, but there are some new entries on the list I'm not familiar with. In the past, some companies have passed these valuation screens because a significant change in operating performance has not caught up with the data, so if there's a recent major change in consistency of performance that will likely not be reflected in the projected valuation.
AEOS - American Eagle Outfitter
CHKP - Checkpoint Software
BBBY - Bed Bath and Beyond
APOL - Apollo Group
CDWC - CDW Computer Centers
ANF - Abercrombie and Fitch
JKHY - Jack Henry
WAT - Waters Corp
CMVT - Comverse Tech
ADRX - Andrx Corp
MTD - Mettler-Toledo
CTSH - Cognizant Tech
I'll likely be putting some of my extra cash into two or three of the above over the next few months after I investigate. Would be interested in comments if anybody has strong feelings on the above.
Shane |
