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John V.
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My methodology is based on William O'Neil's brilliant book "How to Make Money in Stocks" and I'm constantly searching for super-winning stocks. I utilize the CANSLIM strategy popularized by O'Neil and I've added minor modifications to suit my needs. The steps in my process are: 1.... More
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  • Super Stock Screener results, August 21st 0 comments
    Aug 22, 2011 9:29 AM | about stocks: 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
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