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Scott Martindale

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  • New Insight and a Growing Dividend Make L-3 Communications an Undervalued Opportunity [View article]
    I don't look at LLL as a dividend play, and it only rates a Hold in the Sabrient quantitative ratings algorithm at the moment. However, it is attractive in that its Value score has creeped up to a solid 83 (out of 100). Also, the Wall Street analysts have been upgrading earnings expectations, which has given it a very attractive projected P/E, as you suggest. It has been rising in Sabrient's highly predictive Company Outlook Rank. Definitely one to keep on the radar screen.
    May 20 03:41 PM | Likes Like |Link to Comment
  • Western Digital: Great Upside Potential With Limited Downside [View article]
    Both WDC and STX are two of Sabrient's top-ranked stocks in our fundamentals-based quantitative ratings algorithm. Both are rated as Strong Buys with composite scores near a perfect 100. They should be leaders in a recovering economy. We agree with your assessment.
    May 20 03:24 PM | 1 Like Like |Link to Comment
  • Daily Screen: Believe the Market Has Overreacted? [View article]
    Good information. Sabrient's quantitative ratings algorithm is mostly in agreement. Our system particularly likes BP (Value score of 92 out of 100), STD (Value = 96), BBVA (Value = 98), and NBG (Value = 96). We rank RCI and BIIB more favorably for their Growth scores. The only one our quant system doesn't like very much is TKC, which has a Strong Sell rating (despite an above average Value score of 62).
    May 12 02:09 PM | 1 Like Like |Link to Comment
  • 3 Low Beta Equity ETFs for a Volatile Market [View article]
    Michael, another ETF that seeks to act defensively in volatile markets while offering greater upside potential is DEF, which tracks the Sabrient Defensive Equity Index. The index is not the traditionally defensive basket of non-cyclical stocks like the 3 you identify in the article. Instead, Sabrient uses a quantitative "investor sentiment" screen to identify stocks that investors have treated recently as a relative "safe haven" during key periods of market weakness. Stocks also are ranked by free cash flow yield, dividend yield, and earnings quality, and diversified across sectors & industries. It has a beta of about 0.85, which is slightly above your 3 ETFs, but also has outperformed those 3 for all timeframes over the past year, and outperformed all but XLP over the past 3 years.
    May 12 01:38 PM | Likes Like |Link to Comment
  • MGM Mirage Earnings Belie Any Recovery Claims [View article]
    MGM is rated Strong Sell in the Sabrient quantitative ratings algorithm, and is near the bottom in our highly-predictive Company Outlook Rank, which measures a firm's fundamental quality, including forward-looking valuation, growth prospects, analyst sentiment, earnings quality, and accounting practices.
    May 10 12:54 PM | 1 Like Like |Link to Comment
  • PowerShares Small Cap Sector ETFs Hit the Tape [View article]
    Good information, Ron. Let me add that, with small caps, it's pretty much necessary to use market-cap weighting to ensure sufficient ETF liquidity than it is with large caps. Large caps, with their greater liquidity, lend themselves better to enhanced indexing strategies through either fundamental or "active quant" weighting...or equal weighting among a selected subset of highly ranked stocks. Still, it's important for investors to be able to gain selective sector exposure in the small cap space.
    Apr 19 09:51 PM | 1 Like Like |Link to Comment
  • JPMorgan and Morgan Stanley: Finagling Accounting Profits [View article]
    Sabrient's quantitative ratings algorithm downgraded JPM from Buy to Hold last week on 4/6. Value score is down after bumping back up against 52-week highs. MS is still a Buy, although it was downgraded this week from StrongBuy as its relative ranking in our GARP filter has come down a bit. Importantly, neither scores highly in our value-oriented and forward-looking Company Outlook rank, which includes metrics for changes in analyst consensus sentiment, projected valuation and growth, and earnings quality (including accounting practices).
    Apr 15 12:15 PM | 1 Like Like |Link to Comment
  • MGM Mirage Leads 'Low-Quality' Stocks 'Higher' [View article]
    At Sabrient, we also have been writing about the "junk" rally of lower quality stocks ( Stocks mentioned in your article (MGM, HOG, TOL) are each ranked low in our fundamentals-based, forward-looking, quantitative Company Outlook Rank (which we use for long/short absolute return strategies), and each is rated Strong Sell by our multi-factor ratings algorithm.
    Apr 12 12:03 PM | Likes Like |Link to Comment
  • Chevron Is Bullish, Especially Downstream [View article]
    Sabrient's quantitative ratings algorithm has a Buy rating on CVX due to its strong Value score of 93 (out of 100). However, its Growth score is a modest 26. According to Sabrient's value-oriented and fundamentals-based SectorCast forward-looking model, the energy sector boasts the top score (among the 10 S&P GICS sectors) in projected year-over-year change in earnings across the sector and also shows the best (lowest) projected price/earnings ratio as share prices have remained stubbornly low. CVX ranks highly among the constituents of the XLE (energy ETF). As a former Chevron employee, I'm rooting for them.
    Apr 10 03:23 PM | Likes Like |Link to Comment
  • Obama Opens Offshore Drilling: Oil ETFs Soar [View article]
    Energy, including XLE and IYE, have topped Sabrient's value-oriented SectorCast rankings lately. Among the S&P GICS Sectors, Energy boasts the top score in analysts' consensus projected year-over-year change in earnings across the sector and also shows the best (lowest) projected price/earnings ratio. More discussion in my weekly Sector Detector blog post:
    Apr 1 02:33 PM | Likes Like |Link to Comment
  • Blue Nile Diamonds Losing Luster [View article]
    Sabrient's quantitative ratings algorithm gives NILE a Sell rating, as well. Its Growth score is actually pretty good, but its Value score is quite poor at 15 out of 100. Our value-oriented portfolio strategies also rate it quite low.
    Mar 26 12:45 PM | Likes Like |Link to Comment
  • Host, Starwoods Hotels: Do I Have to Choose? [View article]
    Sabrient's quantitative ratings algorithm gives both stocks Sell ratings. Their Momentum scores are good due to the strong price action, but their Growth scores are below average and their Value scores are near zero. Our Value-oriented portfolio strategies also put both HOT and HST near the bottom of the rankings (in Short candidate territory).
    Mar 26 12:35 PM | Likes Like |Link to Comment
  • SanDisk Poised for Growth [View article]
    Sabrient's quantitative ratings algorithm also favors SNDK with a Strong Buy rating. Its Value score has fallen a bit as it hits 52-wk highs, but its Growth score is a strong 89 (out of 100) and its Momentum score (price, earnings, group momo) is a fantastic 99.
    Mar 26 12:29 PM | 1 Like Like |Link to Comment
  • Shipping: A Beaten-Up Industry Set to Embark on a Comeback [View article]
    I perused all the shippers in Sabrient's quantitative ratings algorithm, and we don't have many Buys at the moment. Mostly Holds and a few Sells. The problem seems to be poor Growth scores. However, I see plenty of reasonable Value scores. NMM has been on a nice uptrend, which has likely impacted its Value score, coming in at 58 (out of 100). However, it's Growth score is a relatively high 69. VLCCF has a lot of desirable qualities in our system. Top Value scores are in GNK, SSW, DSX, and NM.
    Mar 26 12:21 PM | 3 Likes Like |Link to Comment
  • Google Breaks Below 50-Day Average [View article]
    Both BIDU and GOOG are both rated Strong Buy by Sabrient's quantitative ratings algorithm. Our quant model gives them both Growth scores of 98 (out of 100), and BIDU also gets a 92 on Momentum (includes price, earnings, and group momentum). The Value scores are cautionary though, as BIDU gets a lowly 15 and GOOG a 47. So the speculative bulls are in control of BIDU, in particular. As you can see, the overall Buy/Sell rating only gives part of the story, and the clearer story can be gleaned from the individual scores.
    Mar 24 02:00 PM | Likes Like |Link to Comment