Stock Screens

Symbol Mkt Cap P/E Yield P/B Int Cov E Marg
AGL 2.85B 11.76 4.83 1.59 4.71 28.56
ADC 227.24M 12.15 8.63 1.42 4.88 76.58
T 165.95B 7.9 6.16 1.62 8.44 33.92
CALM 691.26M 9.18 3.62 1.83 31.85 15.58
DEG 7.66B 11.16 2.68 1.27 4.71 7.33
ECA 22.60B 10.79 2.76 1.31 6.04 63.67
FRS 109.16M 11.22 2.78 0.91 9.41 10.27
IBA 1.28B 11.01 2.27 1.06 10.61 10.95
KEQU 35.40M 13.32 2.93 1.16 37.11 6.8
NOC 19.42B 10.3 2.83 1.61 8.84 10.29
GLT 555.36M 6.56 2.94 1.1 9.25 11.74
RTN 18.05B 10.45 3.05 1.89 27.91 12.1
SNY 2.99B 11 4.56 1.35 21.22 33.12
TRV 25.10B 7.72 2.67 1.03 23.31 36

Google has a better stock screener than most websites I see, including what’s available through Scottrade. The NCAV screen at grahaminvestor.com is also useful.

I ran a stock screen with the following criteria:

  • Mkt Cap: 10M+. Logic being that I want reasonably sized stuff.
  • P/E Ratio: <15. Cheap scaled price. Stay away from the high fliers.
  • P/B: <2. Cheap scaled price.
  • Div Yield: >2%. Cash back to investors.
  • 52 Week Price Change: <+20%. Trading at a reasonable discount.
  • Int Cov: >5. We sit at a reasonable point in the cap structure.
  • Inst Hold: <50%. Relatively ignored.

I then cut out companies for various reasons:

  • ETFs and open-ended mutual funds.
  • financial statements might be difficult to understand/believe, i.e. Everest Re. I avoided many financial companies and Chinese companies.
  • industries that I didn’t feel were promising, i.e. Earthlink.
  • absurdly small.
  • highly cyclical industry whose E has simply been buoyed by a 2010 bounce, i.e. PRGN and whose P is down because 2011 will clearly be bad.
  • random: I have TRV in there and cut out ALL.

To elaborate on the main idea:

  1. Low P/E on top of stable earnings. I’m getting a lot of earnings, and stable ones, for the price I’m paying.
  2. Good divs so that I can see some of those earnings in cash.
  3. Time to wait, because int exps are so covered and P/B is very good.
  4. Some interesting industries: nat gas, restaurants, telecom, a REIT, defense, scientific products, food… very defensive overall I would say.

My primary fear is something I tried to avoid – an E which has been buoyed by a 2010 bounced and P has been depressed because the future is known. Ideally, by picking lesser-covered companies, I have reason to think that P has been depressed because they’re lesser-covered and not because future prospects are really that bleak.

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