Still only two candidates from this screen – and they keep getting cheaper:
| Name | Ticker | Price | Fair Value | Margin of Safety | Yield % | MOS % |
| Gap Inc | GPS | $27.08 | $45.00 | $17.92 | 3.43 | 39.82% |
| Wal-Mart Stores Inc | WMT | $57.41 | $75.00 | $17.59 | 3.39 | 23.45% |
I should take a flyer on one – but I just hate old school retail.
Based on the following screen:
- Morningstar analysis available.
- Less than 5% above its 52 week low.
- Greater than or equal to Narrow moat.
- Free cash flow/enterprise value greater than 5% (should be above what the 10 Year Treasury Bond is yielding).
- Financial Health Grade >= B.
- Forward P/E <= 20.
- Stock Industry not = Asset Management
- Dividend Yield % >= 2.5
- For candidates that have passed all the filters, review the individual stocks Return on Invested Capital (ROIC) for the previous 10 years to select the best long term candidates.
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