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Bob Palmerton
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Mr. Palmerton is the founder of Baseline Analytics TrendFlex, a market trend-following system incorporating high-probability trend change signals. Robert is a Registered Investment Advisor. He is co-founder and advisor to The Absolute Return, LLC, which manages a family of absolute return... More
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Baseline Analytics TrendFlex
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Baseline Analytics
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  • What's The Deal With MFLX?

    Multi Fineline Electronix has emerged repeatedly in the Baseline Analytics Wrapper Value Stock Report.

    The provider of engineering, design, and manufacture of flexible printed circuit boards and related component assemblies for the electronics industry sports several value-based fundamental criteria that earned it a "value" classification in the value stock list that Baseline Analytics uses to run its daily screeners. After combing through our value stock list, Baseline Analytics' screeners search for technical criteria to pinpoint those value opportunities that may represent an attractive entry point.

    Here are some of the key value-based criteria that look interesting about MFLX:

    • PEG Ratio of .76
    • Trailing PE of 3; Forward PE of 12
    • Increasing earnings estimates and a record of beating EPS estimates over the last 4 quarters.

    In recent news, MFLX reported Net Income of $13.7 million, or $0.54 per diluted share, an increase of 131 percent from $5.9 million, or $0.24 per diluted share, in the same period last year. As reported by Yahoo Finance, Reza Meshgin, Chief Executive Officer of MFLEX, commented, "With outstanding operational execution during the third quarter, we achieved our fifth consecutive quarter of strong profitability with earnings per share more than doubling year-over-year. We saw a sequential increase in net sales driven by new programs that ramped during the third quarter. Gross margin also increased sequentially and exceeded our guidance range as we effectively managed the launch and ramp of these new programs. Additionally, we generated strong cash flows during the quarter, growing our cash position to $168.5 million, an all-time high for MFLEX."

    As for screener results, we look for stocks that have liquid trading volume and are priced in a "Bullish" zone. Our next step is to deliver this screened list in our "volume surge" format, which highlights volume and price activity over recent, multiple timeframes. In addition, technical criteria such as RSI and ADX are identified to help hone the list to those with more attractive technical features. Here is a current chart of MFLX and some technical highlights:

    (click to enlarge)

    MFLX rose to the top of our value wrapper list recently, and we highlighted MFLX in our "call-out" list from November 9th.

    Gems such as MFLX pop up all the time. Subscribers to BLA can download the Excel list wrapper report and review at their leisure (links to further research are provided). Bottom line, our service streamlines your investment analysis by delivering targeted opportunities to your desktop on a regular basis.

    Click here to review our Premium services and see how we compare to the competition! We trust that you will be surprised at the breadth of services, and the price!

    Tags: MFLX
    Nov 17 12:48 PM | Link | Comment!
  • The "Buzz" About The Baseline Analytics TrendFlex Score

    One of the key indicators developed and tracked by Baseline Analytics is the TrendFlex Score. This indicator has influenced the trading and investment strategies of our subscribers since its founding in 2011.

    The TrendFlex Score was developed following an extensive analysis of select technical, fundamental and economic indicators correlated with performance to the S&P 500.

    The following key components calculate the TrendFlex Score:

    • Technical Index Reviews (S&P 500, Dow, Nasdaq)
    • Internal Market Strength (i.e. Price and Earnings Momentum)
    • Market Psychology
    • Economic Sector Relative Earnings Strength
    • Credit spreads (Government vs. Corporate)
    • Intermarket Relationships (bonds, commodities, stocks) and relative risk premiums
    • Style (small cap, large cap, value and growth)

    These indicators have been weighted based on back-tested results. The resulting TrendFlex Score tends to range between 1.30 and 2.60. High scores coincide with bearish market trends. Low scores, conversely, associate themselves with bullish trends.

    The signal for a trend change is denoted by the TrendFlex Score crossing above or below its three-week moving average. In the chart below, the TrendFlex Score is plotted as an oscillator around the "0" line, denoting when the score crosses above or below its three-week moving average.

    (click to enlarge)

    Note in the chart above how the TrendFlex Score bars fall below the "0" line in uptrends, and the converse in downtrends. Baseline Analytics utilizes these signals to establish short-term bullish or bearish positions in equities. As a simple hedging strategy, a long portfolio can be hedged with a short position in the S&P 500 e-mini futures, when the TrendFlex Score (bar) falls below its three-week moving average ("0" signal line).

    The weekly updates provided by Baseline Analytics depict the TrendFlex Score in the following chart, which shows the absolute value of the TrendFlex Score plotted with the S&P 500::

    (click to enlarge)

    Note that in the October 2015 rally, the TrendFlex Score crossed below its three-week moving average (the "signal" line).

    As you can see, TrendFlex Scores in the 1.30 area tend to precede selloffs in the S&P 500, while scores generally higher than 2.0 tend to precede rallies in the S&P 500.

    Note the recent peaks in the TrendFlex Scores settling over 2.0 in August, and the rally that followed. The TrendFlex Score is calculated on a weekly basis, following Friday's market close, and reported in the weekly Baseline Analytics update prior to the market open the following Monday (most updates are completed on Sundays). The TrendFlex Score may be updated more frequently as market conditions warrant.

    Investors utilize the TrendFlex Score as a gauge to assess a risk to a change in the short-term market trend, and as a condition to initiate a hedge to a long (or short) market portfolio. For example, many of our subscribers retain a long-term horizon, with occasional speculative positions, including long and short options and futures.

    Visit our Premium Services overview page for more information and performance results on the Baseline Analytics TrendFlex Score and signals.

    Our Halloween Special offers a 50% discount on all Baseline Analytics Premium Services. Act fast, as it expires soon!

    Tags: SPY
    Oct 31 10:23 AM | Link | Comment!
  • New Month, New Dividends: Welcome November!

    Baseline Analytics has refined a series of stock and ETF-screening algorithms that pinpoint timely, high-probability trades and investment opportunities.

    The results of Baseline Analytics' stock and ETF screens are delivered in a downloadable Excel file. This file can be sorted to identify various performance and technical criteria to help provide a further edge to your trading and investments. Instructions are provided to guide you through your review. Our goal is to deliver such opportunities at your fingertips, with minimal research and analysis needed on your end. We do provide a link to Yahoo Finance for each of our timely picks should you want to delve further into particular equities or ETF's.

    As a special offer, Baseline Analytics is providing a list of the stocks going Ex-Dividend in November and their recent performance. Perhaps a dividend-payer or two will surface that is uncommonly oversold, representing an ideal investment opportunity for long-term investors. This list was developed following the 10/27/15 market close and is offered at no charge.

    Subscribers to Baseline Analytics receive our proprietary screens regularly, and this screen in particular will be honed even further for more targeted opportunities, including noteworthy fundamental and technical criteria. Receive these updates as well as our TrendFlex family of market trend signals and risk assessment tools as a subscriber to Baseline Analytics..

    Click here for the report.

    Sign up for a Free Trial and check out our reports and TrendFlex signals for the next 30-days.

    Tags: TGT, AMGN, DAL, LMT, dividends
    Oct 28 6:28 AM | Link | Comment!
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