Slim pickings – not surprising given the market rise over the last 3 days. Note: this rise has been on very low volume – so I will probably be holding my dry powder for the New Year.
Given the weakness in the retail sector, I am still looking for a trade – but will need to be careful – look at BBBY today as a cautionary tale.
Here are the weekly results from this screen:
| Name | Ticker | Price | Fair Value | Margin of Safety | Yield % | MOS % |
| Gap Inc | GPS | $25.70 | $45.00 | $19.30 | 3.6% | 43% |
| MSC Industrial Direct Co Inc | MSM | $57.32 | $79.00 | $21.68 | 2.9% | 27% |
| Parker Hannifin Corp | PH | $99.35 | $120.00 | $20.65 | 2.6% | 17% |
| John Wiley & Sons Inc Class A | JW.A | $44.36 | $53.00 | $8.64 | 2.7% | 16% |
| Rockwell Automation Inc | ROK | $103.40 | $120.00 | $16.60 | 2.6% | 14% |
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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