Investment Idea Discovery, updated as of 05/21/18

X-Axis is the VALUE MEASURE (EV/EBIT). Y-Axis is the QUALITY MEASURE ( ROC Return on Capital).

The upper left quadrant is good companies(high ROC) at cheap prices(Low EV/EBIT).The bottom left quadrant is cheap companies (low EV/EBIT) with a lower quality measure (low ROC)Note by updating the right-hand filters the population size of companies adjusts.

Hint to narrow the discovery process. Consider looking for mean reverting magic formula or cheap value candidates by adjusting the filters on the right side.

Options to consider; Exchange, Industry, Sector, 1yr Rev growth, Market Cap, Financial Strength, 12M return, IndRet12M-StckRet12M (Industry's Avg 12 month return - Stock return over the same period, positive = stock underperformance versus industry), P/B, EV/Sales, Short % Float, Less Shares Outstanding YOY, Lower Leverage YOY, Sloan Ratio to exclude excessive accrual accounting

The darker shape color indicates a lower 52-week stock return. The shape indicates the sector. The color of the shape identifies the industry. For example, the square identifies consumer cyclical, the circle is basic materials. Improve the discovery process by clicking the extreme bottom right icon to work in full-screen Other options available to the left of the full-screen icon are download, share, reset, undu. Don't forget you can lasso the symbol/s you want to include or exclude. The larger shape size indicates the fair value as measured by the Graham value over its market price. 

Tonight (05/21/18) includes only stocks trading below their Graham Value. My Graham value per share is taken from Gurufocus.com. Gurufocus is an excellent site and my only subscription.  Further,  pre-filtered for positive YOY revenue growth (could be adjusted to include negative YOY revenue growth), X-Axis = EV/EBIT, Y Axis = Graham number % greater than market price as of 05/21/18.


Anonymous said...

What are the most interesting ideas?

ShadowStock said...

I like FRAN up 3.50% today. It's a magic formula outlier.I'm long and trading around a position of FRAN.