Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.

Super Stock Screener results, August 21st

|Includes:Apple Inc. (AAPL), ALXN, ATHN, CF, MNK, ZAGG

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

 

My thoughts:

 

The "R" word is back, as in Recession (gasp!).  This past week the market showed that it is still far from bottoming.  That possibility was destroyed when some spectacularly bad news hit Thursday morning and told stocks that they still have farther to fall.

 

The bad news I mentioned came from something called the Philly Fed Index, where the Philadelphia Federal Reserve Bank tracks manufacturing conditions and activity within it's region.  A positive number means that expansion is occurring while a negative number means the opposite.

 

In July the Index was at +3.2 which is not great but at least it's positive.  The August Index was (-30.7), ouch!  That is a huge crash in the index number and so Wall Street then concluded that economic conditions must be a lot worse than thought, therefore stock prices had nowhere to go but down.

 

Many people look at stocks and think that because the current earnings are good when a stock drops they then become bargains and worth buying.  The problem with this theory is that Future earnings must be considered and not current ones, and that is why when a bad number like the Philly Fed Index comes out the market gets punched because it is predicting that future quarters will be worse than current ones.

 

So when the market crashes and your favorite stock is down 10 points and looks like a huge buying opportunity, try and consider the possibility that the company might not be be as well in it's future quarters.  When the market crashes like it did over the last two weeks it is telling you that the probability of future quarters being worse has greatly increased, and that is why you have to sell when your rules tell you to even though the stock looks like the buy of the century.  Sometimes buying low is the worst thing that can happen to you.

 

The only benefit of a market crash for me is that it becomes very easy to see which stocks still have some potential.  My Super Stock Screener may have set a record with a new total of only 6 (yes, 6!) stocks that make the screen.  If you have a watch list then it will be very easy to keep track of these.

 

The market is still volatile and if we do go into a recession then probably all six of the below stocks will fail as well, so please do not consider these as can't-miss stocks simply because they have survived.  Instead, keep your eyes open and searching for the signs that thing are getting better and not worse.  It will come but it may take awhile to get there.

 

Until then, I'll see you at the beach.

 

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.

 

Symbol

Name

EPS % Chg Last Qtr

Sales % Chg Lst Qtr

ROE

AAPL

Apple Inc

122

82

35.3

ALXN

Alexion Pharmaceuticals

45

48

21.6

ATHN

Athenahealth Inc

83

33

15.2

CF

C F Industries Holdings

174

38

19.5

QCOR

Questcor Pharmaceutical

53

62

37.7

ZAGG

Zagg Inc

138

158

45.2

 

 

Stock that fell off the Super Stock Screener results from August 13th are below:

 

Symbol

Name

ACTG

Acacia Rsrch Acacia Tech

BIDU

Baidu Inc Ads

CROX

Crocs Inc

CVLT

Commvault Systems Inc

EDU

New Orientl Edu&Tech Ads *

GMCR

Green Mtn Coffee Roastrs

LULU

Lululemon Athletica

MTZ

Mastec Inc *

NFLX

Netflix Inc *

NTES

Netease.com Inc Adr *

PCLN

Priceline.com Inc

PEGA

Pegasystems Inc *

PII

Polaris Industries Inc

POT

Potash Corp Saskatchewan *

RL

Polo Ralph Lauren Corp *

RNOW

Rightnow Technologies

TGI

Triumph Group Inc

Stocks: AAPL, ALXN, ATHN, CF, MNK, ZAGG