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Ronald Rutherford
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Ron holds a MSc in Financial Economics (specializing in Development Economics) from University of London and a BS in Economics from Oregon State University. He also writes a periodic blog that takes a look at the global economic factors that move the markets entitled Macro View of the Markets... More
My company:
Sabrient Systems, LLC
My blog:
The Sabrient Blog
  • Rock Solid Yields Portfolio Update. Buy 400 FL at $19.29. 0 comments
    Dec 2, 2010 7:27 PM | about stocks: FL

    Hello. Welcome Seeking Alpha readers to the Rock Solid Yields portfolio newsletter. To read past issues of this newsletter, they are located at The Sabrient Blog » Rock Solid Yields. While there is a lot of good talent at Seeking Alpha on the subject of dividend yielding stocks including a complete section on the subject investing for income, the RSY portfolio and newsletter uses Sabrient's quantitative methodology to find the best stocks that will outperform the market. RSY uses the investor tool called MyStockFinder (available for retail customers) to find a list of high ranking stocks and then uses a variety of quantitative filters to find the very best ones to invest in. The following newsletter provides information and reasoning for making the next recommended buy and includes a summary of the holdings and transactions of the RSY portfolio from inception with gains and losses.

    Foot Locker Inc. (NYSE:FL) is rated a StrongBuy by Sabrient for its "top momentum score {92}, along with a solid growth profile {67.6}". It also boasts an outstanding Timeliness Score of 97 and a good Earnings Score of 81.7 which measures "overall earnings performance and projected outlook". The forensic accounting score is good overall and nothing negative about the insider buying or selling. Going forward, earnings estimates are expected to steadily increase over the next 4 years along with top line revenues. Cash flow per share is expected to be soft next year but certainly enough to pay out the steady flow of dividends. The dividend yield is a little over 3% which is acceptable for the RSY portfolio, and the next ex-dividend date has been announced for January 12, 2011. For diversification of the portfolio, picking FL also gets RSY into the retail industry. RSY recommends a buy order of 400 shares at a limit price of $19.29 which is close to the daily high and was the closing price. As long as there are no gap-ups at the opening, then we should be fine at this price point.

    Update of Portfolio:
    RSY is recording a dividend of $8.00 on December 1st from GAIN for the 200 shares held in the model portfolio. Below is a summation of trades along with the gains (or losses) of the model portfolio.

    The next table shows the current recommended holdings in the RSY model portfolio.

    Disclaimer: The Rock Solid Yield portfolio newsletter is published solely for informational purposes and is not to be construed as advice or a recommendation to specific individuals. Individuals should take into account their personal financial circumstances in acting on any rankings or stock selections provided by Sabrient. Sabrient makes no representations that the techniques used in its rankings or selections will result in or guarantee profits in trading. Trading involves risk, including possible loss of principal and other losses, and past performance is no indication of future results.

    Disclosure: Full disclosure: The author holds or will hold the stocks mentioned in this edition of RSY. All positions of the RSY portfolio are held by the author and FL if it meets the price specified.

    Stocks: FL
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