Overview: When beginning to research possible companies to invest in I target value & growth. This is certainly not a new concept & its not unlike what many others do. Or at least they attempt to. In the retail space many traders are unaware of standard valuation & growth metrics. Part I of the StockTips IV part series aims to remedy this. & though, as we will see, targeting such metrics alone isn’t enough, (there are other factors to consider) its certainly a good place to start.
Many folks in the retail space, myself included, use stock screeners to help narrow down their research. Screeners do not inform me what to invest in, but rather what to begin researching. However to use a screener we need to know what to plug into the screener. To know what to plug into the screener, we need to know basic valuation & growth metrics & principles, as this is precisely what the screener is going to ask us for. Take for instance the finfiz screener listed on my resource list. There are plenty of items listed on the screener that, if we do not know what they mean, renders the screener useless. Aside from that, after reading this we will have much less trouble making out the statistics section of any given stock in Yahoo Finance. Nevertheless, if we cannot narrow our search down, then we will waste countless hours researching a hundred bad trades to find 2 or 3 good ones.
Before we continue I have a note about technical analysis. There are a plethora of misleading YouTube videos where some fella is drawing charts & completing technical analysis taking little else into consideration. Here I err on the side of fundamental analysis … mostly because I want to know what I’m buying & I don’t like surprises. Especially easily predictable “surprises.” While technical analysis is great for informing possible entry, add, & exit points, it does little in the form of providing the confidence necessary to hold a stock when the trade turns against us. I, for one, know many of my trades will turn against me in the short run, however I don’t sweat it, as I know that I’ve bought a company at a relative value price, primed for growth, & on a pullback of no consequence. I do not trade nor invest in risky companies where there is little chance that I’ll eventually get my money back if the trade turns sour. The way I see it, if I see value in a company, & the company grows as I conservatively estimated, chances are many large investment firms & hedge funds will see the value too.
By following this research method we can use a screener to find stocks that meet our select value growth criteria. This can save some serious time in researching stocks, as it will seriously narrow down our options to what we’re looking for. Following this method with proper economic favorability analysis (Part II of this Series), & setting our buy in price target’s, before adding watchlist alerts, narrows our criteria even further to the most promising securities at the most promising price under the most favorable economic conditions. Once our alerts hit, we then go into conducting our due diligence & advanced research (Part III & IV of this Series). That way the market determines what we do our deep dives on. Lets begin with identifying what we are looking for & the possible metrics we will use when entering our screener criteria. For if we do not understand what these standard valuation & growth metrics mean, & how to properly apply them, then our screener criteria will be fruitless.
Value Growth Companies:Paid Subscribers will notice something when they gain access to the Daily StockTips Newsletter; the majority of companies I list are boring & reliably profitable companies trading on a value pullback of no true consequence with a history of good growth amid assessed favorable future economic conditions. They often have quite a bit of institutional investment as well. I consider them “value growth companies.” In the first part of this three part series I will go over the metrics we can use to find value & growth.
Why Value?: The term “value” can often be both an objective & subjective unit of measurement as to what the company is truly worth. What matters isn’t necessarily what we personally think a security is worth, but rather what the majority of prospective traders & institutions think the stock is worth (the street). A stocks value usually dictates how low the price of a stock will go, how much interest there is at a certain price point, & how confident investors are holding the stock at certain prices.
Why Growth?: Consistent growth over time, even if the market does not reward growth immediately, is the number one indicator that the share price will eventually go higher. Remember that consistent earning beats does not necessarily mean consistent growth. A company can beat analysts expectations & still manage to be losing both value & growth over time (Particularly companies with negative EPS). Also remember that companies do not need to consistently beat analyst earnings estimates to grow. Too many get wrapped around earnings beats & misses. Earnings beats & misses are in accordance with what analysts project, & they are wrong nearly 100% of the time. If the company is posting positive earnings, they’re usually growing.
The Benefits of Targeting Value Growth: The value aspect of an equity gives us some indicator as to how low a stock will trade. Certainly we cannot estimate this perfectly, but the lower a stock trades the more attractive it becomes. There is a point for every stock where big institutions cannot resist the share price. Knowing how to value a security, & therefore, knowing to the greatest extent possible what the stock is objectively worth, goes a long way to mitigating the anxiety of holding a stock where we find ourselves in the red. Growth has a similar effect. If we are already holding a stock at a value price, growth is like an additional premium. Once again it is easy to hold an equity, even if it is deep in the red, if we know both the value we own & the probability of future growth. Therefore we can be rest assured that the value of the stock, even with little to no movement in share price, will increase over time. Eventually some large fund will realize what we see & compete in the market for shares, effectively driving up the share price.
Why Stocks Can Trade Much Lower than “Fair Value”: “Fair Value” is what I refer to as the value of a security where everyone else deems to be a good buy. Of course, neither you nor I get to decide what “fair value” is. However wherever that fair value point is, trust me when I say stocks can trade much lower. This is because of two phenomenon. 1) Large equity firms. 2) Psychology.
Large equity firms: When large institutions dealing in millions to billions of dollars buy or sell a stocks, they are well aware that they will inevitably move the share price. The volume they create can be massive. To mitigate this they will either sell calls or buy puts when they sell a considerable lot of shares, or buy calls or sell puts when they buy a considerable lot of shares. Therefore it is important to understand that institutions can often make money no matter which way the stock trades. Unlike most retail traders they even have the option to go both long & short on the same security at the same time. They can, & do, often go short to take advantage of the bearish sentiment they inevitably create while selling large blocks of shares while locking in their profit using a combination of options strategies. Always remember that retail does not own the market … big money does. This reality forces us to come to grips with the necessity not to fight them, but to ride their backs. Consider retail traders like ourselves the small Remora Fish attached to a large Great White Shark (The Institutions).
Psychology: Finally psychology plays a large part of why stocks can continue to trade below street value. Once a stock sells off due to large institutional profit taking, the street wonders why. Does someone know something we don’t? Was there some economic data that cast bearish sentiment on this particular industry or sector? Does the street expect the company to act in a way that will lower its valuation? Such questions, & many more, aren’t just asked by us. They’re asked by everyone who holds a position in the company we do. Even analysts may downgrade a stock for no other reason than to tailor their expectations a year out from now. Indeed they hate to be wrong, & they always are. So do not be surprised not only when a security we thought was already undervalued sells off further than expected, but also stays down as it may take time for traders to feel comfortable entering again. Corrections back to street value can often take a few weeks to a few months. Sometimes until next earnings to relive fears of both retail & large institutions.
Finding CURRENT Value: The first & most obvious way to find value is to see how much the company is worth, with no other factors considered, right now. Lets explore the basics:
Book Value: Book Value, or BV, is defined as the net difference between a companies assets & liabilities. In short, if we were to liquidate the company right now, the BV is what we could reasonably expect the company to be worth. BV is calculated simply by subtracting (Net Assets-Net Liabilities). To find the BV on a balance sheet, look for “carrying value.”
Book Value Per Share: Book Value Per Share, or BVPS, is simply BV divided by the number of shares in a company’s float. If the company were to liquidate today, the BVPS would likely be what the shareholders are owed (per share). BVPS is calculated by (Net Assets-Net Liabilities)/Total Number of Shares Outstanding.
Price to Book: The Price to Book Ratio, or PB, is the first metric where we are starting to bring true context to a company’s relative value. PB is calculated by dividing the current share price (The price the stock is being traded at in the market) by the BVPS. Why is this important? Because it puts the company into a measurable metric that can be compared to what we bought the stock for, & in some cases, the PB is a metric that we can use to help compare other companies in the same industry. A PB value of 1 or less, for example, means that a company’s share price is trading at or below current value. Rarely, if ever, is a company trading at a PB multiple of 1 or less unless that company is expected to decline in value, although, there are circumstances in which such bargains have presented themselves. Particularly during the COVID crash of 2020.
Price to Sales: The Price to Sales, or PS Ratio, tells us how the market values every dollar of sales. PS is calculated by dividing market cap by revenue, or, Share Price by Revenue per Share. While this can be a good way for comparing unprofitable companies to like companies, it does not take into account items such as debt. PS is done over a trailing twelve months (ttm) time frame. A PS Ratio of 1 means the company is trading at one dollar for every dollar of annual revenue. A PS Ratio of 4 means the company is trading for $4 for every $1 of revenue. Each sector is different, though a PS of 4 or higher is generally looked upon poorly unless high growth is expected. Taken with other metrics PS can be a valuable tool for valuing a company.
Market Capitalization AKA Market Value:Market Capitalization (MCorMV) is simply the current share price multiplied by the number of shares outstanding. By itself it is a poor metric to value a company, as it is contingent of what market itself values the shares by, which changes frequently. However when taken with other metrics MV can be a valuable tool. For example, if the (MV) is at or under the BV, at quick glance one might conclude that the company is undervalued.
Enterprise Value: Enterprise Value (EV) is an often underutilized metric by retail traders that I find quite useful. EV is most aptly utilized for assessing the value of a company’s shares as if the company were to be bought out. EV is calculated with the following formula: (Market Cap + Total Debt - Cash & Cash Equivalents) or (MC + TD - C). Why are we adding debt & subtracting cash? 1) Because we cant buy a company without taking on the debt held by the bank & bond holders (who no doubt own collateral in the company), & therefore, such financing is either paid off or assumed by the buyer in a buyout/takeover. 2) The Cash & Cash Equivalents are usually applied to the debt in these scenarios, which is why we subtract cash from the cost. But wait a second? If the market Cap (MC) is determined by the price the company trades in the market on any given day, then cant the buyout happen for less than what the market prices the company for? Sure, … if they want to abandon their legal responsibility to their shareholders usually resulting in the buyout getting tied up in judicial arbitration for a number of years until they finally relent & pay the equity holders a fair price. Wall Street lawyers love such payday scenarios & in the event this happens they’ll scour the earth searching for claimants. Because different industries utilize debt differently it is once again always best to compare like companies when judging EV. In cases where the EV is less than or equal to the MC, we may have a company that looks attractive for a buyout. Still, they’re going to have to toss current shareholders a premium if they want such a transaction to move smoothly.
Finding CURRENT Income: Before we advance our valuation metrics against current core financials, it is necessary to review a few terms. That way we are better apt to understand how current value & income can be used to assess a companies value.
Revenue: Revenue, or gross income, (Often referred to as sales on an income statement) is a simple top line growth metric calculated by number of units sold by unit price. In short, this number demonstrates nothing other than cash received from sales, whether the company is actually profiting from those sales or not. Remember a company can still be increasing in revenue from quarter to quarter or year over year & still be losing money, & for a number of different reasons. By dividing total annual revenue by the company float, we can get the handy metric “Revenue Per Share.” This gives us the ability to quantify & compare one like company’s annual revenue against another; which gives some insight into company efficiency.
Profit:Profit is simply revenue minus expenses. Profit is usually measured in three ways: Gross profit, Net Profit, & Operating Profit.
Gross Profit:Gross Profit is sales minus the cost of goods sold (COGS).Often a metric used to calculate “Gross Profit Margin.” COGS sold include labor & materials.
Gross Profit Margin: The gross profit margin tells us how much profit as a percentage of net sales per overall unit sold, [(Net Sales-COGS)/Net Sales] x 100. If the profit margin swings wildly we’ll want to know why. We will want to see consistency or growth quarter to quarter, or year to year, when it comes to the gross profit margin. Remember that temporary one off investments that make production more efficient, & therefore, lower the cost of COGS, may temporarily lower short term profit margin, but increase profit margin in the long run. Gross Profit Margin is certainly one of those metrics that we will want to compare against immediate competitors. The larger the gross profit margin the better.
Operating Profit:Operating Profit takes into account (Gross Profit [as we just calculated]- Operating Expenses). Its often used to find Operating Profit Margin. Operating expenses are the necessary core expenses to produce goods & services. Expenses like overhead, administrative, & operational expenses, such as rent, utilities, administrative staff, employee benefits, insurance etc. Companies can lower or increase operating expenses but cannot cannot get rid of them altogether. As with all companies we will want to compare like companies when using this metric.
Operating Profit Margin: Operating profit margin (Often referred to as return on sales[ROS]) is calculated by dividing Operating Profit by Sales or Revenue OPM=(OP/R) x 100. What the operating profit margin, or operating margin, tells us is how efficiently the company is being run per dollar of revenue. Once again the higher the margin the better, & if we see a decrease in OPM we’ll want to know why. As with all companies we’ll want to compare like companies when using this metric.
Net Profit: Net profit, or Net Income, is all income left over after all expenses (Operating Profit-Taxes & Interest)…. the bottom line number.As with all companies we’ll want to compare like companies when using this metric.
Net Profit Margin: Also known as Net Margin, Net Profit Margin is calculated by (Net Profit/Revenue) x 100. Net Profit Margin tells us the overall net profit per dollar of revenue. So why pay attention to Operating Profit Margin & Gross Profit Margin when at the end of the day Net Profit Margin seems like all that really matters? Because both Operating Profit Margin & Gross Profit Margin can tell us how efficiently a company is run, where there might be room for improvement, & what part of operations may be holding the company back. Indeed a company can bring in record net profits, however if the companies operating margin or gross margin decline as compared to competitors, the street may react negatively.
Operating Income & Non Operating Income: Though we have calculated operating income there is still one metric where a company has a bit more flexibility: Non-Operating income. Non Operating Income includes one off non-reoccurring sources of revenue other than from normal operations. For example, lets say the company got a cash payment as a result of a settlement in a lawsuit. That income would be considered “Non-Operating Income.” Quite often we can see a company doing really well during earnings but dump all the same. Sometimes this is because of non-operating income inflating the numbers. Investors don’t typically care about one off cash windfalls. They want consistency & growth in operational revenue.
Observations on Profit: If the company is making a profit, the company is usually growing in value. So many retail traders & investors get caught up on whether a company beats analyst earnings per share expectations. But at the end of the day a profitable company is a growing company. What often changes is the rate of growth & that generally affects the share price on profitable companies more so than anything else. Nevertheless, so as long as a company continues to profit it grows in value, & therefore, the company with all things being equal will eventually justify share valuations even if EPS expectations are missed. Knowing this is important, as so many traders sell profitable companies that they would have otherwise profited on had they read the situation correctly & held longer.
Earnings: Earnings, usually reported quarterly & annually, is the net income from the previous quarter/year. Usually quantified in Earnings per Share, or EPS, to help break it down to the shareholder level.
Earnings Per Share: Earnings Per Share, or EPS, is simplyNet Profit divided the Weighted Average of Shares Outstanding (WASO).Net Income/WASO. EPS is fairly straight forward & measured quarterly. We generally do not want to compare EPS by the previous quarter, though we can, but rather the same quarter the year before. Comparing like quarters will give us a more reliable metric as to growth in earnings. Remember that failure to grow in positive earnings year over year does not necessarily mean a company is not growing, but often merely growing at slower rate than the year before … which is often reflected quickly in the share price.
Diluted Earnings Per Share: Diluted EPS takes into account preferred dividends & assumes all securities authorized to be issued were in fact issued.[(Net Income-Preferred Dividends) / (WASO + Conversion of Dilutive Securities [CDS])]. Preferred dividends are particularly important because money paid out to preferred shareholders affects true earnings for common shareholders. Moreover the addition of all dilutive shares give investors an idea of how earnings would look like in the event the company diluted their stock to its full extent.
GAAP & Non GAAP EPS: “GAAP” stands for “Generally Accepted Accounting Practices as judged by the Financial Accounting Standards Board. This is what get reported to the SEC & provides consistency in accounting across the board for all companies. However there are times when companies believe the constraints of GAAP do not properly reflect the earnings of their company. Such nuances not covered by GAAP can be included in Non-GAAPEPS, however the company must still report GAAP & tell shareholders how they arrived at their Non-GAAP conclusion.
EBITDA: Earnings Before Interest, Taxes, Depreciation & Amortization is a Non-GAAP metric. EBITDA is often favored by unprofitable companies, as it discounts interest paid on debt, & can be calculated flexibly to present a more, or less, accurate picture of a companies earnings. EBITDA is good for calculating the earnings potential of a company & can include non-operating income. Once again this metric should be compared against companies in a similar industry.
Cash Flow: CF measures the amount of cash either flowing into or out of a company after bills & obligations are met.
Operating Cash Flow:Operating Cash Flow, or OCF, is the cash flow from core operations with Non Cash Expenses added back & the Increase in Working Capital deducted. OCF = (Net Income + Non Cash Expenses - Increase in Working Capital). By adding Non Cash Expenses (like Depreciation, Stock Based Compensation, Unrealized Gains/Losses, Deferred Taxes) & deducting increases in working capital (i.e. changes in inventory, accounts receivable, accounts payable), we receive a fixed snapshot of if the company can afford to pay its ongoing expenses through normal operations. If this number is negative it means that the company is bleeding cash. You will find that some organizations, like Yahoo Finance, like to look at OCF over the trailing twelve months (ttm) … In which case it could totally be possible that a company has become profitable but still showing a negative OCF. When companies go from negative to positive OCF it is generally rewarded with a sharp increase in share price.
Levered Free Cash Flow:LFCF is the amount of money a company has left over after paying ALL of its obligations & is perhaps one of the best indicators of profitability. LFCF is calculated by EBITDA - Change in Working Capital - Capital Expenditures (CAPEX) - Debt Payments.(Note: CAPEX is cash reinvestment, upgrades, or maintenance into the company) Companies with positive LFCF are meeting their business obligations. If we want to know if the company can afford to pay their dividends, we also may consider (LFCF - Total Dividends) to see how well they can pay the dividend in addition to all other obligations.
Unlevered Free Cash Flow: UFCF is the amount of cash left over without taking interest payments into account. In short, LFCF before accounting for finance obligations. UFCF=EBITDA-CAPEX-Working Capital. Be careful of companies that report only UFCF, as they may be in so much debt that they have trouble meeting their financial obligations & may be trying to hide true LFCF. UFCF is often used when calculating the Discounted Cashflow Model/Valuation.
Price to Earnings Ratio: PE Tells us the ratio between current shareprice to 12 months of earnings. Generally speaking, a PE Ratio of 10 is considered fair value, & 20 or higher is usually considered overvalued. However this depends wildly by industry & expected growth. At the end of the day the PE Ratio should be compared by like industry’s in like sectors of their closest competitors. The PE assumes how many years it takes for earnings to pay current shareprice if both the price & the earnings were to remain the same (which is never the case).
Trailing PE: The Trailing PE encompasses the past 12 months of earnings. Each quarter we will generally want to see this number get smaller, & if the company is growing it typically does. Trailing PE is calculated by (Current Share Price / 12 Months EPS)
Forward PE: Forward PE estimates the next 12 months of earnings & is calculated by dividing the current share price by the estimated cumulative EPS over the next 12 months (Current Share Price / Estimated Next 12 Months EPS). I often enjoy, whether the analysts predict growth or not, assuming the same forward earnings as the most recent quarters EPS on companies that have just recently become profitable. As you can imagine, we can play with these numbers quite a bit, however its best to be as realistic as possible & then give ourselves a certain margin of error. During earnings reports companies themselves will often give forward annual EPS projections, & if the company is smart, they’ll keep it conservative.
Price to Earnings Growth Ratio: PEGis calculated[(Price/Annual EPS)/(EPS Growth)]. A score of 1 is considered fairly valued, less than 1 undervalued, & over 1 overvalued. So if a company is trading at $5.00 per share, has an annual EPS of $0.30, & is expected to grow 20%, the PEG would be [($5.00/$0.30)/20]= PEG 0.83. Utilizing this formula the stock is undervalued. However if the same company is expected to grow EPS at a rate of 15% the PEG would be 1.11 & would be overvalued. We do not necessarily need to use company forward guidance to build our PEG model. We may want to use the average % EPS change in the last year, last 2 years, last 3 years, & so on. Perhaps the average yearly % change in EPS over an extended period of time will provide a more accurate model. Nevertheless we should create a number of models on a number of possibilities when using this formula.
Institutional Investment: Institutional investment is always noteworthy. If there is a high amount of institutional investment we can reasonably expect that institutions see value in the company. Though relatively low amounts of intuitional investment do not enjoy such an assumption, there is always the possibility that institutional interest will catch on … & where there is room to buy from weak handed retail, there is room for big money to suck out all of the oxygen. In either case we generally want to see institutional investment increasing each quarter.
Dividends: Regardless how overpriced a stock may trade, if the company can easily afford to pay a reliable dividend there is usually only so far a stock will drop under normal market conditions. For example, if a company can easily afford to pay (& does pay) a reliable 1% annual dividend, & trades for $100, we cannot reasonably expect that such a dividend will float the shareprice at $100. However if same stock can (& does) easily afford to pay a reliable annual dividend of 5-8%, we can reasonably bet that the stock just got a whole lot more attractive at $100, & likely higher. Remember that in most cases the dividend is a set amount, & the dividend yield we receive depends on what price we bought the stock for. So in most cases when the shareprice decreases, the dividend yield increases, & once that yield increases by so much the stock usually becomes all but irresistible to intuitions.
Float: The Float is all shares issued to the public that are available to trade. In my experience the lower the float, the more volatile the price action on a reliably profitable value growth company. This is because whether a big money intuition is buying or taking profit, there are but so many shares to buy or sell which results in massive moves in shareprice. Stamps.com, for example, (before getting bought out) only had a float of roughly 17m shares. 25m shares or less is typically considered a small float. As earnings came & went, STMP used to fluctuate roughly (+/-)$100, between $150 to $250, so reliably that we could set a watch to it. Such a wild swing was made possible by the small STMP float. Therefore small float securities can often dive well below what we think they can.
Options:Something few traders think about are the rare occasions that the street isn’t certain on a stock & the 3 month at-the-money options premium is roughly 1/3rd the share price ... which is amazing! If we are thinking that such a prospect would be an excellent covered call opportunity, so too are institutions. There is often only so far a stock will drop on a decent company when there is amazing options premium involved.
Growth Companies with High PE: High growth companies will typically have a high PE ratio. Such a high PE ratio is not necessarily bad provided the company can grow to street expectations to justify the price.
Watch the Cash Flow: Some companies seem to be making record earnings, but can still have negative ttm cash flow.
Value Traps: There are a number of indicators that identify possible value traps. The most prominent indicator that catches the most off guard is a stock that trades for a good value, & yet has so little room for growth. For example, if a company produces at max capacity, is both unable to produce more & refuses to expand, while enjoying consecutive quarters of similar EPS, investors wont exactly expect anything other than very slow growth. This could result in slow progress in share price, if any at all. In short, a value trap.
There is no Such Thing as a Perfect Stock: If we are looking for the most perfect stock where all the financials match a perfect scenario at the perfect price, with outstanding prospects for growth, we’ll never invest in anything. There is no such thing as a perfect stock, just stocks that are more attractive than others. & if we do in fact find the “perfect stock,” then we had better check twice. There’s usually something we’re missing.
Company Guidance:During earnings companies will often provide guidance of future EPS expectations a quarter to a year out. If they’re actually growing, & they’re smart, they will show decent growth but also be conservative in their estimates. This can result in undercutting what the street has already priced in & result in a reduction of shareprice. This can also result in earnings surprises next earning season. Moreover they may come out a month later & revise their guidance upwards, closer in line of what the street originally projected. Whatever the case, when projecting future earnings & share price valuation with our PEG formula, among other models, it is often safest to undercut what the company claims so as to be on the safe side.
Adding Picks to a Watchlist: Paid subscribers will find that in addition to stock picks that pass my scrutiny, I have a Price Based Assessment Watchlist (PBAW) on the Daily StockTips Newsletter. Once you’ve found your possible value growth picks in the screener you may want to add them to your own watchlist & pick a price target (& set your alerts at that PT) that will trigger your own follow-on research. However, my additions do not make the PBAW until I’ve ALSO conducted Economic Favorability Analysis (Part II of the StockTips Investment Research Series). Once I find the possible Value Growth Buys in the screener, & find that the company is in an industry/sector that is favored by current economic conditions, I add them to the PBAW & assign a price buy in target (& set my alerts). Once that price target is triggered I then go into Phases III & IV, Due Diligence & Advanced Research Techniques (Part III & IV of the Investment Research Series).
By using a screener to narrow down the value/growth characteristics that make a stock attractive to us, we can save a considerable amount of time & effort. By adding to our price based assessment watchlist only the stocks that pass our value/growth scrutiny by the screener, pass our initial quick analysis, & look to be in a sector favored by current or future economic conditions, we narrow our focus even further & save even more time. By additionally adding a buy in price target & setting our price alerts, we essentially let the market tell us which stock to research, & therefore, we are only conducting our due diligence on likely good buys alerted to us by our PBAW. Utilizing this model we are letting the market tell us what’s a good buy, we take much of the uncertainty & guess work out, we increase our chances for profit, we save a lot of time, & we will be less inclined to be biased by our portfolios.
Conclusion: There are so many nuances & market oddities I have left out of the first part of this series that only experience can provide. For example I cannot tell you precisely what to search for in a screener which will magically result in outstanding results every time. That’s not the way screeners work. Nevertheless understanding the information conveyed above is essential to understanding what to put into a screener, & understanding the financials of the companies in your results. Completing this task properly will result in saving you many hours in research & time. And time, as always, is money. Just as the information you just received, if applied properly, is money. However if you would rather see the stocks that passed my personal scrutiny, & stocks/research alerts that exist on my Priced Based Assessment Watchlist, consider becoming a PAID SUBSCRIBER. It’s free for the first 7 days anyway & an exceptionally low price given the amount of time & effort you’ll likely save by sorting through my personal research.
IMPORTANT DISCLAIMER: I am NOT a registered investment adviser, broker dealer, or member of any other association for research providers in any jurisdiction whatsoever & I am NOT qualified to give financial advice. Investing/Trading in securities, particularly microcap securities, is highly speculative & carries an extremely high degree of risk. The information, analysis, & opinions listed above are my own & may not properly reflect the underlying conditions of a company or security. You should do your own Due Diligence. If you trade based on anything I have written YOU ACCEPT FULL RESPONSIBILITY AND LIABILITY for your own trades & actions & hold the author of this publication harmless. If that isn’t clear enough DO NOT TRADE, ACT, OR INVEST, BASED UPON ANYTHING I WRITE OR RECOMMEND. There, we should be solid now.