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Super Stock Screener results, September 3rd

|Includes: Apple Inc. (AAPL), ACTG, ALXN, ATHN, BIDU, BKI-OLD, BKNG, CF, CPA, DAR, EDU, FMCN, GMCR, JCOM, LULU, MNK, MTZ, NTES, OXM, PII, RL, RNOW, TGI, TIF, UAA, 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 -