LT and All -- "Dogs are in the eye of the beholder" -- or "One man's dog is another man's god," depending on your point of view.
I am not referring to the canine variety of dog that has been under discussion here recently, but to the marine variety, specifically -- to TDW.
I was ready to take your advice, LT, to dump the "dog." But then I did a little more snooping around. Among other things, I went to the Telescan site, and ran some more screens. Instead of devising one myself, as I usually do, I ran through a bunch of Telescan's own tailor-made, backtested searches. Lo and behold: TDW came up as one of the top 25 "best purchase candidates" -- out of the entire universe of listed stocks (what is that, 6,000 or 7,000 stocks?)-- on at least half of the searches I ran.
In fact, it was the only oil/driller/oil services stock to show up repeatedly. (I regret to report that my other holding in this sector -- ESV -- came up only once.)
Now I will have to shout. Paul Levy & Baird Soule -- are you listening? MANY OF THE CRITERIA WERE FORWARD-LOOKING, NOT BACKWARD-LOOKING! Among them: projected EPS for next fiscal year, projected 5-yr EPS annualized, projected price growth, projected velocity,etc.
The searches I ran fell under four separate Telescan headings: 1) Earnings (TDW #22 on Great Earnings, Sales, Cashflow Growth; TDW #3 on Great Earnings Stability and High Value Ranks, etc.); 2) Undervalued stocks (TDW #4 on Undervalued Growth Stock Strategy #2; 3) Cashflow (TDW #6 on, for example, High Free Cashflow per Share and High Earnings Growth); and 4) Potential Reversals (TDW #1 on Potential Reversals with High Earnings Growth; TDW #14 on Potential Reversals with PROJECTED High Earnings Growth; #17 on Projected Growth Stocks with Reversal Potential).
And so on & so forth. In case you're interested, here are more oil-service/driller stocks that "scored." Some of them aren't discussed much on this thread.
The search that turned up the most oil-related stocks was, not surprisingly, "Potential Reversals with Projected High Earnings Growth": #1 - TDW; #2 - NBR; #3 - KEG; #4 - PESC; #6 - MDCO; #8 - WII (Weatherford Enterra); #20 - SII (Smith International).
"Projected Growth Stocks with Reversal Potential" produced just two: #6 - NBR, and #17 - TDW.
"Undervalued Growth Stock Strategy #2" -- TDW (#4) and once again NBR (#12) and WII (#18).
"Great Earnings Stability and High Value Ranks -- TDW (#3), SII (#11), RDC (#17), ESV (22), MAVK (24).
"High Free Cashflow per Share and High Earnings Growth -- TDW (#6), RON (#19), BJS (#22).
"Great Earnings, Sales and Cash Flow Growth -- VRC (#2), SII (#6), GLBL (#9), PDE (14), TDW (#22).
Whew! The point of all this is that there is more than one way to slice the salami.
But no matter how you slice the salami, TDW is a dog in only one respect: its price momentum. <sigh!>
Tomorrow, Ladies & Gentlemen, I should like to raise another question: why do oil-related stocks that look like TRUE dogs (to me, that is), do so well, price-wise??
Happy (stock) hunting!
jbe
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