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Strategies & Market Trends : The Rational Analyst -- Ignore unavailable to you. Want to Upgrade?


To: milesofstyles who wrote (34)12/15/1997 11:23:00 PM
From: ftth  Read Replies (2) | Respond to of 1720
 
[Rainier's 14]Miles'o: Certainly. It is post #5395 on the "Charts for Quick Cash $$$" thread, reprinted below:

To: +Ray Cunningham (5385 )
From: +Rainier Trinidad
Sunday, Dec 14 1997 11:17PM EST
Reply # of 5410

[ Fundamentals ] Ray,

I'm rubbing my hands with glee since this category falls along my strongest territory.
Characteristics I look for in longer term holdings, regardless of what market I am in:

1. Debt/equity ratio of less than 0.10
2. Current ratio >= 2.0
3. Price/sales ratio of <= 2.0
4. Price/book ratio of <= 2.5-ish
5. Met or exceeded analyst estimates in the past 7 quarters
6. Price/(Earnings Growth) of 0.5, ideally
7. Outstanding shares of 3.0 million or more
8. Short Interest: the higher the better, for the short squeeze
9. Beta: inconsequential
10. Institutional Holding: the lower the better, though the existence of some is
preferable to the non-existence--we want to know it's already partially discovered.
11. Earnings growth: steadily growing; inconsistent growth is undesirable.
12. Preferable to have a stock buyback program(but I know you can't scan for that)
13. Not in a weak/declining/troubled industry
14. Non-declining TA characteristics.

There's obviously things you can't scan for in the above criteria, but if anything pops
out, I'd be interested. Only about 1 stock like this comes out a month out of the plenty
I look for. And these usually are in the fallen angels category, with correspondingly
weak TA. The desirables of course are the good FA/TA stocks.

Ask me some more.

Regards,

Rainier