Made a few more changes to this screen – sorting out Asset Managers, increasing the PE allowance and decreasing the Cash Return requirement to 5%. Here are the results:
| Name | Ticker | Price | Fair Value | Margin of Safety | Yield % | MOS % |
| Qualcomm Inc | QCOM | 55.37 | 70 | $14.63 | 3.48 | 20.90% |
| Mead Johnson Nutrition Co | MJN | 76.29 | 92 | $15.71 | 2.17 | 17.08% |
| Alliant Energy Corp | LNT | 55.37 | 61 | $5.63 | 3.96 | 9.23% |
Sorting out the Asset Managers and Morningstar’s current review of Energy Companies – makes for a small list. Nothing is jumping out at me as a bargain – yesterday’s massive Bull move did not help. If Qualcomm could get closer to $49 – I would be interested.
Based on the following screen:
- 52 Week Low 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
- 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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