Alternative Screen: 5 Star Stocks

Dogbert: I'll pay you a million dollars a year to work at my hedge fund. I'll do the insider trading and you pretend you created an algorithm that makes winning trades. Dilbert: What if I actually create the algorithm? Dogbert: Sure, and maybe you can eat fiber and make gold, too.

Retail and Biotech names are still the only cheap 5 star stocks:

Ticker Price Fair Value Margin of Safety Yield %
BBBY $42.10 70 $27.90 0.0%
LB $60.62 98 $37.38 3.5%
WSM $49.52 76 $26.48 2.9%
GILD $82.28 124 $41.72 2.1%
AMGN $148.98 194 $45.02 2.4%

Click on the link to research further.

I would not touch any retail stocks yet – there is just too much capacity and not enough consumer demand.  I think a lot of retail stores need to be closed:

The stocks look sick as well:

I already made a trade for GILD – would recommend looking at either Gilead Sciences or Amgen for a long term investment.

Results are based on the following screen:

  1. Morningstar Rating = Five Stars       
  2. Financial Health Grade >= B
  3. Cash Return % >= 5
  4. Stock Industry not = Asset Management

z - even even smaller

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