John V.'s  Instablog

This week's results from my Super Stock Screener.  Screening is an excellent starting point for finding winning stocks.

My thoughts:  A big week of volatility in the market for the prior week with lots of up and down, roller-coaster type of action occurring.  This led to many stocks getting bid up by investors, and then as bad news came in these same stocks then sold-off.  This process is a dynamic one because each time stocks go up or down, the weaker stocks will rise less and fall more, while the stronger ones rise more and fall less.  Eventually the strong ones become obvious and the stocks you followed six months ago become ancient history.

That is really how the market works and why my screening is effective at finding and keeping up with the winners in the market.

Last week the Super Stock Screener dropped down to the lowest number of stocks in a while to only 34 stocks.  Because the market rallied many stocks that were down and out went up enough to get back on the screening results and now the screener has 39 stocks.

Interestingly, the volatility in the number of names adding and dropping reflected the volatility that was seen in the market this past week as 9 new stocks showed up while 4 others fell off the screen results.  It is unknown whether the 9 new stocks will have any staying power so we'll just have to keep an eye on them and see what happens.  I expect a number of them to drop-off but who knows, maybe they'll surprise me.

The most interesting of the new stocks appear to be Telenav (NASDAQ: TNAV) as well as Tibco Software (NASDAQ: TIBX), while of the dropped stocks there is nothing much to say except I hope they manage to get back on the screener results someday.  The market is still in a downtrend and until things change please be careful no matter what you do in the market.

As always this is not a buy list but rather a starting point for doing more research.  Stocks that are new are underlined and have an Asterisk (*) next to their company name.

Stock that fell off the Super Stock Screener results from June 18th are below:

Note: This screen is fairly wide (EPS>=45%, Sales>=25%, ROE>=10, RS>=90, Price within 20% of High) and I do have tighter screens as well.  To keep the screen results manageable I removed Industry Groups that I either do not believe in (Financial) or are so Commodity that I have no idea how to pick one from another (Oil&Gas).