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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, September 3rd 0 comments
    Sep 4, 2011 12:47 AM | about stocks: AAPL, ACTG, ALXN, ATHN, BIDU, BKI, CF, CPA, DAR, EDU, FMCN, GMCR, JCOM, LULU, MTZ, NTES, OXM, PCLN, PII, QCOR, RL, RNOW, TGI, TIF, UA, ZAGG

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

     

    My thoughts:

     

    Wow!  I'm back from vacation and when I look at stocks all I can think is the word "Wow".  When I left the Super Stock Screener had only six stocks on it, and since then the market rebounded sharply and now is tumbling again as we head into the Labor Day weekend/holiday.

     

    I am still of the opinion that we set the lows in the market back in early August and when I ran the Super Stock Screener today I felt justified in that view seeing as how the results have rebounded back to a respectable 26 names total.  These 26 stocks below are probably the best of the best out there as they probably have the best earnings growth, the best sales growth, and in any comparison they probably all come out ahead in one way or another.  This is the good news that I can see.

     

    The bad news is that while these 26 stocks may be the vanguard for the next bull market, the problem is that the majority of stocks out there all have broken charts in one way or another.

     

    I define Broken Charts as ones with big swings in prices, where the price is not near 52-week highs, and where the price is below the 50-Day Moving Average.  Many former favorites/winners that have broken charts now include stocks such as LULU, UA, PII, etc. and all share the simple fact that their share prices are all over the place which in turn makes them extremely difficult to trade.

     

    The best rule you can implement for yourself is to make sure that you don't fall in love with former winners that have broken charts, because most likely they will not repeat the winning performances that made them so great in the first place.  If they do then that is the exception and not the rule.

     

    Bull markets have much less volatility in prices, and you can see the difference simply by looking at daily price ranges from before August 1st and then comparing them to daily price ranges from after August 1st.  Quite a difference if you ask me.

     

    Instead, look for new stocks that have good charts that include:

    1.  tight price action; not a lot of crazy swings in price

    2.  near 52-week highs

    3.  above the 50-Day Moving Average

    4.  big up-volume

    5.  exceptional earnings and sales growth

     

    The list of stocks below is a good start, but if the economy does go into recession then there is a high likelihood that all stocks will continue to go down rather than up.  I am not a news analyst but I do know that one rule of thumb is that bad markets generally have nothing but bad news, and that good markets usually have nothing but good news.  So ask yourself "is the news generally bad or generally good right now?".  I think we both know the answer to that question at the moment.

     

    Bad news causes investors to sell and stocks always go down much sloppier than they go up.  This is why you may think you're in a good trade during times like these, and then you look up and all of a sudden you've swung from gains to losses in the blink of an eye.  Thus investing in bear markets is much harder due to the price volatility.

     

    Bear markets are a great time to sit things out and relax and remember, Cash is a position too.  When the Bull market re-appears it will be obvious to all, so until then just remember that sometimes (pause) the best move is not to play.

     

    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

    ACTG

    Acacia Rsrch Acacia Tech *

    1800

    165

    50.6

    ALXN

    Alexion Pharmaceuticals

    45

    48

    21.6

    ATHN

    Athenahealth Inc

    83

    33

    15.2

    BIDU

    Baidu Inc Ads *

    106

    87

    54.8

    BKI

    Buckeye Technologies Inc *

    162

    25

    17.9

    CF

    C F Industries Holdings

    174

    38

    19.5

    CPA

    Copa Holdings Sa *

    52

    41

    24.8

    DAR

    Darling International *

    214

    183

    14

    EDU

    New Orientl Edu&Tech Ads *

    100

    59

    23.6

    FMCN

    Focus Media Holding Ads *

    52

    46

    14.5

    GMCR

    Green Mtn Coffee Roastrs *

    133

    127

    15.9

    JCOM

    J 2 Global Communication *

    41

    40

    23.5

    LULU

    Lululemon Athletica *

    57

    35

    36.2

    MTZ

    Mastec Inc *

    72

    52

    15.3

    NTES

    Netease.com Inc Adr *

    65

    39

    26

    OXM

    Oxford Industries Inc *

    78

    26

    14.6

    PCLN

    Priceline.com Inc *

    78

    44

    44.2

    PII

    Polaris Industries Inc *

    83

    41

    51.1

    QCOR

    Questcor Pharmaceutical

    53

    62

    37.7

    RL

    Ralph Lauren Corp Cl A *

    57

    32

    17.7

    RNOW

    Rightnow Technologies *

    67

    26

    27.6

    TGI

    Triumph Group Inc *

    52

    108

    13.5

    TIF

    Tiffany & Co *

    56

    30

    18.5

    UA

    Under Armour Inc Cl A *

    71

    42

    15.3

    ZAGG

    Zagg Inc

    138

    158

    45.2

     

     

    Stock that fell off the Super Stock Screener results from August 21st are below:

     

    Symbol

    Name

     - None -

     - None -

    Stocks: AAPL, ACTG, ALXN, ATHN, BIDU, BKI, CF, CPA, DAR, EDU, FMCN, GMCR, JCOM, LULU, MTZ, NTES, OXM, PCLN, PII, QCOR, RL, RNOW, TGI, TIF, UA, ZAGG
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