S&P Screen any ideas here?

Discussion in 'Trading' started by stonedinvestor, Jan 12, 2007.

  1. Why not look for stocks that have broken the 10% barrier without breaking a sweat over the long term? Or the 20% barrier, for that matter? We decided to aim even higher for this week's screen.

    To find these overachievers, we scoured the S&P database. We searched for those issues with five-year histories of 25%-plus growth rates in three essential categories: earnings per share, sales, and return on equity, a widely followed measure of how efficiently a company deploys its capital.

    To avoid speculative issues, we screened for stocks priced above $5.00 per share, and with market capitalizations of more than $1 billion.

    And to ensure that these stocks were attractive from a valuation standpoint, we made them jump through one final hoop. We turned to S&P's Fair Value Model, which calculates a stock's weekly Fair Value--the price at which it should trade at current market levels--based on fundamental data such as corporate earnings and growth potential, price-to-book value, return on equity, and current yield relative to the S&P 500. We set our last filter to catch those issues with a Fair Value ranking of 5, which indicates that it is significantly undervalued vs. the entire universe of stocks in the Fair Value model.

    When we finished crunching the numbers, a half-dozen names turned up:

    Aeropostale (ARO)
    Chesapeake Energy (CHK)
    Coach (COH)
    Cognizant Technology Solutions (CTSH)
    Headwaters (HW)
    Zimmer Holdings (ZMH)

    Well ARO & COH have had big runs back from sell offs, Zimmer is an SI favorite but it's up by it's highs. CTSH? Likewise in nosebleed territory, Chesapeake has to be let go with the rest of the oil & gas plays right now... that leaves Headwaters. HW> How many times have you heard on TV oh we just will never see a new refinery in America?... Check this out:

    Utah Co Considers Building Oil Refinery In Nova Scotia -CP
    Dow Jones Newswires - January 10, 2007 4:11 PM ET
    Symbol Last Chg

    HW Trade 24.22 0.00

    NEW YORK (Dow Jones)--A U.S. energy service and construction company is considering opening an oil refinery in Nova Scotia, Canadian Press reported last week.

    Port Hawkesbury Mayor Billy Joe MacLean confirmed Jan. 3 that Headwaters Inc. (HW) of Utah has been scouting locations in the Strait of Canso area, Melford, Guysborough County and Sydney.

    "They are very serious, but it's in its infancy," said MacLean. "They are telling us it's very large, but there's still a lot of work to be done."

    Headwaters representatives have met with municipal and provincial government staff at least four or five times in Port Hawkesbury, he said, according to the Canadian Press account.

    Company executives also had discussions in Halifax in December with Nova Scotia Business Inc., a provincial business development agency.

    There hasn't been a new refinery built in North America in 25 years.

    Headwaters is interested in the area adjacent to Anadarko Petroleum Corp.'s (APC) liquefied natural gas site at Bear Head and 121 hectares of land in Melford.

    Headwaters expressed interest in setting up a heavy oil refinery in the area after hurricanes Katrina and Rita knocked out refineries in the Gulf of Mexico and getting a permit for an oil refinery in the U.S. became increasingly difficult, MacLean said.

    "They are three or four years away, if they are lucky," he said.

    A Headwaters spokesman confirmed the company is looking for a site to build an oil refinery.

    John Ward, spokesman for Headwaters, said the company is in the "preliminary stages" of building a refinery in Canada and declined to reveal more details of the business development unless a site is selected.

    "We don't want to get anyone's hopes up," Ward said last week in a telephone interview from Utah.

    Ward said the company, which had $1 billion in revenues last year, has no refineries elsewhere but recently announced the creation of Heavy Waters Oil to develop technology to improve the efficiency of refining heavy petroleum.

    According to Headwaters' Web site, the company is a world leader in developing and using alternative fuel and related technology, and is focusing on converting fossil fuels such as coal and heavy oils to alternative energy products.

    Interesting! Take a peek at the HW chart> That's a pretty massive 3 month flatline base @ $24... With all the above mentioned earnings growth & the potential to move forward with a refinery, Headwaters becomes a definite comeback candidate for 2007! ~ stoney
  2. And sorry but this makes me feel better, that a whole lot of brains and research can easily get you nowhere in this trading world,, ill stick to my basics,, and not complicate things, flip a coin, market feel, patterns intra second, and limit losses,, last one im still learning,, good thing i have a babysitter for now,