Friday, April 20, 2007

Stock Screen: Private Equity Buyout Candidates

I collected a lot of stock screens this past year. Most use the free deluxe screener available at the MSN Money website. The screens are sometimes hard to find on the MSN website, so I thought I would share what I found.

This is a screen which looks for stocks that may appeal as buyout candidates.

Screening parameter:
Market Capitalization >= 1,000,000,000

Screening Parameter:
Market Capitalization <= 5,000,000,000 Screening parameter: Return on Equity >= 5

Screening parameter: Price/Cash Flow Ratio >= 1

Screening parameter: Price/Cash Flow Ratio <= 20 Screening parameter: Last Price <= 0.7 * Five-Year High Price

Screening parameter:
Last Price >= 0.40 * Five-Year High Price

Screening parameter: Price/Sales Ratio <=2 Screening parameter: Price/Sales Ratio <= Industry Average P/S

Screening parameter
: Mean Recommendation <= Moderate Buy

Screening parameter
: Mean Recommendation >= Hold

Screening parameter:
EPS Growth Next Five Years >= 10

Screening parameter:
EPS Growth Next Five Years <= 15 Screening Parameter: Debt to Equity Ratio <= 0.5 Here is a link to the MSN article by Harry Domash with a description of how and why the above parameters are used.

6 comments:

ilanit said...

The world of Los Angeles private equity funds is a fairly rarefied world. The vast majority of these funds are organized as limited partnerships (LP) where the investors are principally institutional investors such as pension funds, banks, and high net worth individuals.The general partner (GP) identifies the opportunity, calls money from its lLP's (also called a drawdown or takedown) up to the amount committed and can do so at any point until the fund is liquidated. When an investment is liquidated, the GP distributes proceeds to the LP's in kind or in cash. The compensation from LPs to GP's consists of a management fee, plus a fraction of the profits called the carried interest.

Best Payday Loan said...

Typically, most private equity funds are structures as limited partnerships. Usually, the setup would require that the partnership be supported by a general partner who raises capital from cash-rich investors like pension plan and insurance companies, colleges and universities, foundations or high net worth individuals. These investors are identified as limited partners in the equity fund.

QUALITY STOCKS UNDER 5 DOLLARS said...

Theirs always companies involved in buyouts.

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