Stock Picks – 52 Week Low Screen: 2-17-2016

I know I say this a lot, but what a difference one week can make – after a 3 day market rally – there are no new candidates from this screen, nada.

I also don’t see any stock values with my other screens – happy with the trades currently in place – all very profitable to date.  I am still hoping to acquire more equity via these trades – but will not be putting new money to work until the markets correct.

I fear this is a dead cat bounce – not a new bull market – time will tell.

Based on the following screen:

1. Morningstar analysis available.
2. Less than 5% above its 52 week low.
3. Greater than or equal to Narrow moat.
4. Free cash flow/enterprise value greater than 5% (should be above what the 10 Year Treasury Bond is yielding).
5. Financial Health Grade >= B.
6. Forward P/E <= 20.
7. Stock Industry not = Asset Management
8. Dividend Yield % >= 3
9. 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.