Value Screen Results for an Explosive 2010

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 |  Includes: ACU, AFOP, BOLT, CF, DWSN, ELNK, EME, ENDP, ERI, GEOKQ, HAST, JOSB, KTII, NINE, PDLI, PPD, PRLS, SCMR, SGMA, SODI, SPAR, UNTD, UUU
by: Jae Jun

I’ve created several value stock screens that will be updated on a weekly basis.

When I get results from just any regular screen like Yahoo or MSN, there is the trouble of having to go through each of the results but the value stock screens should make the process easier by comparing the numbers that really count.

So if you’re looking for cheap stock ideas, how about the following list of stocks categorized by different screening strategies that I employ.

Cheap Stocks Based on Valuation

These stocks are from the OSV screen. For each stock in the list, I add it manually as I research companies or from stock requests.

The objective of this screen is to identify the stocks that are cheap based on stock valuation of EPV, Graham Formula and DCF valuation.

The following stocks have current prices that are all below their respective valuations.

Ticker Price Tang.BV EPV Graham DCF EY FCF Yield
SPAR $6.93 $4.57 $7.54 $12.81 $10.67 19.9% 6.9%
JOSB $44.77 $13.71 $47.08 $52.17 $45.58 20.6% 11.1%
KTII $113.85 $0 $122.73 $162.95 $134.12 15.7% 8.8%
BOLT $12.06 $6.52 $17.48 $19.76 $14.49 - 16.5%
PPD $42.45 $1.67 $50.77 $76.36 $80.01 - 14.4%
ACU $9.15 $6.29 $17.69 $13.18 $15.38 14.1% 6.2%
DWSN $24.42 $17.67 $27.15 $53.01 $55.40 33.7% 16.4%
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Cheap Graham Stocks

These stocks are from the Graham stock screen. The company’s NNWC and NCAV values are used to determine the value.

Ticker Cash/Asset Rec/ Assets Inven./ Assets NNWC NCAV Price NNWC MOS NCAV MOS
AFOP 86% 4.4% 0% $8.95 $10.79 $1.24 87% 89%
ELST.OB 72.4% 2.6% 8.6% $3.47 $4.18 $0.55 84% 87%
OTCQB:SODI 58.7% 7.3% 14.7% $7.23 $9.60 $2.39 69% 77%
AVGG 58.1% 31.4% 0% $0.36 $0.44 $0.15 58% 66%
MGOF.OB 61.1% 25% 0% $0.28 $0.33 $0.12 54% 61%
AMGY 68.9% 2.9% 10.2% $0.60 $0.77 $0.60 32% 47%
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Cheap Magic Formula Stocks

These stocks are from the Magic Formula Screen. The companies listed are the result of running the screen for companies with a minimum market cap of 50M.

Ticker Price EY FCF Yield P/FCF EV/FCF ROA 5yr ROE 5yr FCF/Debt
ELNK $8.51 107.7% 12% 4.4 8.4 7.1% 10.7% 55.3%
PDLI $6.79 52.6% 18.8% 6.8 5.3 -11.3% -26.1% 16.1%
CF $97.22 29.8% 8.3% 12.1 12 2.6% 4.4% 61.3%
EME $27.43 27.3% 6.6% 4.7 15.2 3.9% 11.6% 9.8%
UNTD $7.39 26.7% -6% 5.7 -16.7 9.1% 15.1% -10.1%
ENDP $20.89 23.1% 7.8% 5.7 12.8 14.7% 20.6% 35.1%
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Truly Cheap Stocks

These stocks are from the cheap stocks screen. Truly ugly stocks where each company started off by meeting the following criteria.

  • P/B less than 0.5
  • P/S less than 0.5
  • P/Cash Flow less than 10
  • P/FCF less than 15
Ticker Price Tang.BV NWC EY FCF Yield P/FCF EV/FCF FCF/Debt
HAST $4.29 $9.74 $0.29 48.9% 25.9% 2.2 3.9 8.9%
MNTG $1.38 -$0.37 -$14.69 21.6% 25.6% 3.4 3.9 1.1%
UUU $5.52 $9.53 $3.64 0% 13.2% 5.2 7.6 126.3%
SGMA $5.10 $2.02 $0.52 32.2% 11% 0 9.1 13.4%
GOK $9.86 $13.28 -$9.37 55.6% 9.6% 2.7 10.4 -0.9%
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Leveraged but Profitable

These stocks are leveraged but profitable. Profitable means they have positive FCF. This is a contrarian strategy as nobody likes companies with high debt, but the ability to generate FCF makes it interesting and the leverage creates opportunities for huge returns.

Ticker Price EY FCF Yield P/FCF EV/FCF Debt/Eq FCF/Debt
PEDH $1.95 52.3% 55.9% 3.8 1.8 349.1% 29.7%
BBI $0.72 85.2% 14.4% 2.4 6.9 905.4% 17%
NHWK $4.33 22.5% -31.2% 4.8 -3.2 88.9% 13.9%
BAS $10.48 11.5% -24.4% 4.3 -4.1 120.3% 13.4%
AOI $5.73 21.9% 10% 3.4 10 438.3% 10.2%
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Negative Enterprise Value Stocks

These stocks are from the Negative Enterprise Value screen. For people new to this strategy, negative EV stocks are loaded with excess cash which makes them ideal candidates for explosive returns. Here are some stocks that I’m currently following in a test portfolio. Although the portfolio is a few days old, the performance so far is unbelievable.

Ticker Price Tang.BV CROIC Growth FCF/Sales 5yr EY FCF Yield EV/FCF Debt/Eq FCF/Debt
NINE $1.81 $7.87 11.9% 38% 11.4% 15.2% 6.6 5.9% 267.9%
PRLS $2.61 $0.05 31.2% 13.4% 21.1% 26.4% 3.8 16% 252.1%
SCMRD $20.87 $10.09 0.6% 3.4% 55.3% 7.9% 12.6 3.3% 146.5%
IDSY $3.25 $0.49 0.1% 2.5% 192.9% 19% 5.3 4.3% 134.5%
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Disclosure: I hold no stocks mentioned at the time of writing.