I have been pretty overwhelmed with actual work the last couple weeks, but wanted to provide a quick update. Several new developments occurred over the weekend with the input of new financial statements into the anticitrade model.
With the new statements from JAKK (I company I owned and probably shouldn't have) they were downgraded to a sell by my model. So, I sold them off today at 13.34 for a 3% gain. Nothing to write home about. In my strategy I choose stocks for "home run potential", when I no longer believe they have that potential I dump them and find something that does. [more]
A friend of mine suggested I run the UK stocks through my model and see what it spits out. Below are my top recommendations based on that run.
Because information is not as readily available for these stock picks, I had to depend more on my own analysis of these picks than I do for the US ticker symbols. I started with 2784 stocks in the system, however only 1965 of these stocks had sufficient years of operation for me to properly analyze their financial statements. Unlike my usual analysis the lack of data available in this stock exchange forced me to calculate a greater portion of the metrics than usual. Many of these companies are barely profitable so all ratios with an earnings denominator were fairly ridiculous. I would detail what those average ratios are, but I do not want to add any additional fuel to Alstry's bonfire.
That said the top stocks with an undervalued rating from the index are (the order is in best to worst):
XGT.L, MKS.L, RMG.L, NXT.L, QQ.L, EEN.L, WMH.L, FTIS.L, SGE.L, KAG.L, EDCL.L, BFA.L, CMST.L, CFM.L, GCLA.L, TTA.L, RPSE.L, SAM.L, TSCO.L, ETC.L, SZCD.L, GEC.L, BLT.L, CGNY.L, GFTU.L, RCG.L, SIE.L, TPSD.L, BOE.L, BAC.L, LECI.L, SVT.L, MTVW.L, AXD.L, BVA.L, LAD.L, OTLD.L
The next batch of potentially good picks are below:
PUR.L, JPM.L, AMS.L, SSA.L, MCB.L, EETD.L, SAA.L, INFO.L, AGS.L, FRM.L, BRT.L, DCC.L, KAZ.L, BHY.L, ISYS.L, FTO.L, HAS.L, ARL.L, SOG.L, ASM.L, LLOY.L, GRI.L, SFT.L, ZOO.L, LOG.L, RBG.L, EBID.L, SKG.L, HYUD.L, CRX.L, FDL.L, TDK.L, PZC.L, SER.L, PNN.L, RAY.L, URKA.L, VERI.L, ROM.L, GBP.L, EFD.L
And from a straight DCF analysis the undervalued picks are:
XGT.L, MKS.L, KAG.L, RMG.L, SAM.L, NXT.L, QQ.L, CSH.L, EEN.L, WMH.L, CFM.L, ETC.L, FTIS.L, SGE.L, EDCL.L, CMST.L, GCLA.L, BCT.L, RPSE.L, TSCO.L, SZCD.L, BLT.L, CGNY.L, RCG.L, TPSD.L, GTE.L, LECI.L, LAD.L, ENDV.L, MTVW.L, PUR.L
I don't own any of these stocks, in fact, I don't even know the name or industry of any of these stocks. You could say they are pristine recommendations, free from my own speculation or opinion (at least speculation that isn't automated).
Now if someone knows a stock picking game that will allow for testing these picks, I will be happy to create a portfolio for our collective interest and amusement.
In a recent blog post a new blogger expressed surprise at the relatively few responses he got to a challenge issued to the “bulls” of Motley Fool. Some bloggers may mistakenly assume that the lack of the “bulls” voice is proof of a very small bull population and hence further support for a bear strategy. However, I think the underlying problem is that bulls are fundamentally different than the bears. It would be the equivalent of placing large piles of fresh meat in a field and gauging the amount of bulls in the area by the quantity that come to feed. [more]
After getting laughed out the door by some other fools, I realized that the $19.99 transaction fee I pay at fidelity is disgrace to me and the entire gem state. Prose976 suggested that as a "Gold" member of fidelity I could get: "$8 trades, a ton of other features, and their customer service is unsurpassed." [more]