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Biotech / Medical : Biosource International -- Ignore unavailable to you. Want to Upgrade?

To: Joe Dancy who wrote (395)	1/10/1998 1:20:00 PM
From: Steven Dopp	Read Replies (1) \| Respond to of 696

Joe, my investment club members also have a large cap bias. However, we only have one large cap stock in our portfolio. I think this is because most of the members feel like they don't know what they're doing. Those that do (that is, can read an SSG) have consistently recommended stocks with good SSGs. In the last 12 months (which is all the longer we've been doing SSGs), we haven't found a single large cap stock which looks good. Consequently, our portfolio is dominated by small-cap stocks. Our current holdings are: Applebees International, Barnett Bank (perhaps it is NationsBank by now - our 1 large cap stock), Benchmark Electronics, Biosource International, Exactech, Helix Technology, Ingles Markets, and NCI Building Systems. (hmm... perhaps it is time to start an NAIC thread?) In looking for additional holdings, my initial screens turn up (among others) the following: Cascade Corporation (forklift accessories), Kelly Services, American Eco Corp (ECGOF), Raymond James Financial, Lawyers Title Corp, Nam-Tai Electroincs, and Roanoke Electric Steel. I also think Maverick Tube is worth a look. Quite a few restaurants are showing up as well. In addition to Applebees, I get hits on Benihana, Outback, and Wendys. I do my screens on WSRN.COM. I set a maximum price to sales ratio of 1.7, max price to book of 4.7 (Normally I weed out stocks with price to book over 2.5 but I want to be able to catch bank and financial services companies in my screen, which have hibh p/b ratios), a 5 yr growth rate of at least 13 %, ROE of at least 13%, and debt/equity ratio of no more than .43 I'll eventually do SSGs on them. Those that survive will be put in a table where I compare them head-to-head on a number of other factors, including % institutional ownership, Zack's avg. analyst recommendation, concensus future 1-year growth rate, p/e to growth ratio, and a few other things. I present the club with the SSGs of the winners, a Stock Comparison Guide, along with the comparative table I described above, and we pick what we think is the best of the bunch to buy. The question our club needs to address is, which way do we go from here? Do we buy more shares of what we alread own, do we load up on the high tech sector while it is down, or do we continue to diversify our portfolio with companies from different industries?