J Clinton Hill

19 'Babies with Bathwater' and 1 'Dog with Fleas' Stocks for the Week

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hi cato:

thanks for sharing your research efforts on ENP...

yes, this screen is a quantitative filter for both fundamentals & technicals. i acknowledge in the preface of the report that it is not perfect and unfortunately it is unable to exclude a "MLP"... just based upon its technicals, it slipped thru the cracks and as i write this reply, ENP is down @ 5% in just 3 days vs. the SPY being down @ -2.4% over the same period on an intraday basis.

when used in conjunction with our market direction reports, most of the stocks results yielded from this screen tend to be right..

the whole purpose of this report is to create a reference point for investment ideas and not specific recommendations, which is also strongly emphasized in the preface of this report. in fact, the only thing i recommend is that readers do their own due diligence like you just did before taking any decisive action.

at any given week, the screen can generate up to 40 different stocks, a number that makes it impractical to research thoroughly, especially without compensation...

there is a premium version of this report that includes decision support research for more in-depth fundamental analysis and market-timing... the manner in which i interpret and apply the results is often non-linear and will vary, e.g. ratio spreads, options, and bullish or bearish positions for both babies or dogs. at the moment, the report is currently unavailable to retail investors, but enough clues are provided to point people in the right direction most of the time.

on the surface the report appears to be simple, but there's a lot more substance underneath the hood in terms of algorithms and proprietary inputs. to keep it user friendly, the format is intentionally presented in a simple an streamlined manner. as i have said before, in the right hands of a professional, the report is a pretty versatile tool and comparable to a swiss army knife.

i sincerely appreciate your comments because this report has accomplished another important objective and that is encourage further research efforts from readers and provoke them to share their opinions and discoveries for the benefit of others as well as themselves.

if i could get more people to take me to the mat like you just did, then i consider myself to have done my job well, i.e. empower people to help themselves and help others...

thanks again.... take care and have a great day!


On Oct 27 09:33 PM cato wrote:

>
> This evinces the dangers of conducting brain-dead screens on stocks.
> When you know nothing about the underlying stock, these screens are
> much worse than worthless.
>
> ENP is an MLP. As such, its numbers must be viewed very differently.
> For example, GAAP EPS is not meaningful at all, because it does not
> account correctly for the massive Oil and Gas hedging upstream MLPs
> like ENP have. For companies like LINE and ENP, hedging income accounts
> for a moeity of their revenue right now.
>
> The key metric for these companies is not EPS, but Distributable
> Cash Flow (seekingalpha.com/symb... -- which ENP has up
> the wazoo. In fact, it just reported earnings tongith with enough
> DCF to increase the distribution again. Tell me, how many of your
> recommended stocks have increased dividends lately?
>
> What's more ENP has 140% coverage of that distribution (plenty of
> room to increase some more). That's better coverage than just about
> any company in the MLP space.
>
> Boy you really blew that one. Hope you didn't do something really
> stupid like short it.