I like the Three Point Value screen put out by SmartMoney.
In past, I've got a couple of ideas from the screen, and I find it affirming to see stocks later show up on the screen that have already been discussed here, some of which I may have bought.
SmartMoney describe their screen as follows:
"The Three Point Value screen is so named because it relies on a trio of valuation metrics: the price/earnings, price/sales and price/cash-flow ratios. By using all three measures, the screen tends to eliminate stocks that look cheap for the wrong reasons. A company benefiting from a one-time tax credit, for example, might have an artificially low P/E, but its P/S would fail to impress. One that was cutting prices too low just to ring the register more often would produce the opposite effect.
Our screen looks for companies whose P/E, P/S and P/CF ratios are in the bottom 25% for their industries. It also seeks improving margins, manageable debt levels and a lack of popularity on Wall Street (bargain stocks should have plenty of fans left to win over)."
Here's their write-up on one of the stocks, Constellation Brands, which has been discussed here before:
yahoo.smartmoney.com
The current screen results apparently are these:
yahoo.smartmoney.com
I'll look at CHRS: I don't find that it's been discussed here.
I note Cummins (CMI) mentioned here by grommit, others; Kindred mentioned by schzammm, valueminded, others.
Fwiw, I have positions in several of the stocks: I'm adding occasionally to IDR based on aggressive hedge (?) fund Pirate Capital's persistent buys. I posted in March that I got scared out of trucker YRCW, but I subsequently got back in in May. I've liked the oil/gas pipe suppliers, and I have shares of several including a few shares remaining of MVK. MVK's not really a buy now, imo, because it's being acquired. (Screen results do have their problems.) I don't have CMI, but I do have NAV, and I've just recently added to my few shares. I've added to my few shares of STZ as the stock has dropped. I'm holding KND. Also have a few shares of FINL. (I've gone back an reexamined my numbers/estimates for FINL, and I believe now the stock is not a buy. (my top buy point now being $11.8 vs. stock price higher at about $12). I'll likely hold for a little while longer though, because the stock's at a 2 1/2 year low, so maybe the stock might stabilize.) |
