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

To: HeyRainier who wrote (1054)	6/3/1998 12:51:00 AM
From: Scott H. Davis	Read Replies (1) \| Respond to of 1720

[making a short list of co's with great FA & growth] I sold TRIBY a couple weeks ago & have been researching potential investments. As Rainier and some know, I start with FA, then look at the business case, then look for TA for positive or negative confirm & entry points. I not only looked at at stocks I follow on an ongoing basis, but a number that came up as hits at a site that has some pretty good free screening stockscreener.com I used a screen that went something close to (AND condition): PE < 35 P/Book < 4.8 P/Sales < 4.8 PEG < .75 Current Ratio > 3.1 Profit Margin > 11 1 year earnings growth > 19 ROE > 14 (to get down to 20, I think a few were a little more restrictive) I got some interesting hits. Some I have already weeded out (all most all the recent earnings were the result of a one large time gain). Three of the stocks I already regarded as great growth/value combos cam up in the top 20 in this screen (I'm in EQNX and PTIX, have had and probably will hold INVX again after the market psychology regarding the disk drive sector changes) Then I gathered data on 23 of these. The market cap for all but one of these was < 600m - possibly showing inneficient small cap market. Not only did this incluse FA ratios (RM, ROA. ROE, CR, Price/cash flow, and Dave's suggestion of profit margin/Price to sales, plus and one I call cash per investment dollar (cash per share/share price) But I also include a subjective rating of EPS growth, average analyst rank, PEG (forward 98 and 99 growth rate estimates / forward PE) amd a TA rating from MarketEdge. After totaling the rankings for all these, I eliminated half. The result was the following list: BARR, COHU, RTI, POR, RUS, SEEQ, VVID were the ones I came across soly from the screening site that past my initial review. Note, I'm not recommending these yet since I need to review the business case and operating earnings better 1st. The others (from my list) were PTIX, INVX, EQNX, CGN, CROS and MODT Anyway, I believe several of these would merit closer review for intermediate to long term holds. I would sincerely appreciate further input on these issues as possible intermediate to long holds (Rainier is right, trading is not my expertise) Thanks, Scott