Friday, June 29, 2007

Value Quest - Blog Review

I like blogs that save me time by providing links to interesting articles about investing. One of the newer blogs that does that is Value Quest. What I like about the site is that one can find links to articles and video interviews featuring successful investors. For example, a recent post consolidated the Financial Times articles penned by value investor Whitney Tilson. Several other recent posts contained links to insightful Bloomberg video interviews I may not have seen otherwise.
Overall, Value Quest is worth a visit as it may save you time by finding and highlighting relevant information you may not have been aware of or did not have the time to track down yourself.

Wednesday, June 27, 2007

Profitable Stocks Under $10 - Stock Screen

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 stock screen looks for companies that are profitable but that sell cheaply for under $10 per share.

Screening parameter: Previous day's closing price <=9.95

Screening parameter: Previous day's closing price >=2.00

Screening parameter: Average daily volume last quarter >= 40,000

Screening parameter: Return on invested capital >= 10

Screening parameter: price/sales ratio <= 8

Screening parameter: Revenue growth year vs. year >= 12

Screening parameter: Revenue growth quarter vs. quarter => 0.75* revenue growth year vs. year

Screening parameter: EPS growth next 5 years >= 15

Screening parameter: % institutional ownership >= 30

Screening parameter: Mean recommendation >= Hold

Screening parameter: Recent quarter surprise % >= 0


Here is a link to the MSN article by Harry Domash with a description of how and why the above parameters are used.

Tuesday, June 26, 2007

Super Value Guru - Stock Screen

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 stock screen takes several of the common criteria used by various value investors.

Screening Parameter: Last Price <= 0.75*5-year High Price

Screening Parameter: Pre-Tax Margin <= 0.9*Pre-tax Margin: 5-Year Avg.

Screening Parameter: Price/Book Value <=2

Screening Parameter: Price/Sales Ratio <= 0.75* Industry Average Price/Sales Ratio

Screening Parameter: Price/Cash Flow Ratio <= 15

Screening Parameter: ROE: 5-Year Avg. >= 7.5

Screening Parameter: Debt to Equity Ratio <= 0.9* Industry Average D/E Ratio

Screening Parameter: Current Ratio >= 1

Screening Parameter: Dividend Payout Ratio Above 85% False Now

Screening Parameter: Market Cap. >= 500,000,000

Here is a link to the MSN article by Harry Domash with a description of how and why the above parameters are used.

Monday, June 25, 2007

Comeback Stocks - Stock Screen

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 screen looks for out of favor large caps. The screen looks for the largest members of the S&P 500 who have had a negative return in the last year. The 10 with the greatest precent change are then considered. Here are the parameters for the screen:

Screening Parameter: S&P Index Membership = S&P 500

Screening Parameter: Market Capitalization >=$10,000,000,000

Screening Parameter: Last Price >= 5

Screening Parameter: 52-week price change percentage: <= 0

Here is a link to the MSN article by Harry Domash with a description of how and why the above parameters are used.

Tuesday, June 19, 2007

SFO: Technical Analysis - Book Review




What Is It About?

This book collects several articles on online trading from Stocks, Futures, and Options magazine. This anthology contains articles from such trading luminaries as John Murphy, Brian Shannon, Thomas Bulkowski, and Lawrence McMillan. The topics covered include the history of technical analysis, chart construction, patter recognition, and application of technical analysis.


What Did I Get Out Of It As A New Investor?

A solid overview on the study and application of technical analysis. The editor of the book assembles the best articles appearing in Stocks, Futures, and Options magazine in order to walk the new trader through the process of understanding what technical analysis is all about. This book helps one understand the various factors that go into following a technical analysis style of trading.

From chart construction to trend and pattern recognition to using technical indicators the book provides an introductory overview to many of the common questions a new trader may have about technical analysis. All the articles provide answers to those common questions new traders have about technical analysis. In short, the book presents material most helpful to new traders wanting to learn technical analysis.


The Good News

A helpful book for a new trader with a basic introduction to issues regarding technical analysis.


The Bad News

While the book does assemble many great articles into book form which may appeal to the experienced trader, this may not be the best book for those who have moved beyond the introductory stage of technical analysis.


The Bottom Line

A solid informative book for the new trader looking for a comprehensive overview on technical analysis.


Other Related Reading:

Monday, June 18, 2007

Secrets of the Trading Pros - Book Review

Secrets of the Trading Pros: Techniques & Tips that Pros Use to Beat the Markets (Wiley Trading)





What Is It About?

The book is an insiders look at how professionals trade the markets. Told in narrative fashion, the book covers such topics as trading psychology, economic releases, and risk management. Overall, an interesting tale from a market insider.


What Did I Get Out Of It As A New Investor?

Interesting read from the perspective of a professional market participant. Two important points I took from the book: know your market and the market will always do that which hurts the most people. Engaging read that does not bore the reader.


The Good News

Thought provoking in that the book helps one think about the markets.


The Bad News

Those looking for a specific plan on how to trade may want to look elsewhere.


The Bottom Line

A worthwhile read for those interested in understanding how to mentally approach the markets.


Other Related Reading:

Sunday, June 10, 2007

Income Investing Today - Book Review





What Is It About?

The book discusses the benefits of income investing. Looking at different income securities such as bonds, REITs, preferreds, and convertibles, the author covers various ways to invest for income. The book also does a good job of introducing the new investor to how income securities are priced and how they trade. Overall, a solid text on fixed income investing.


What Did I Get Out Of It As A New Investor?

Income investing is a lot like riding a moped. It can be a lot of fun, you just don’t want your friends to see you doing it.
Using fixed income securities as investments often finds stereotyping as something for those entering the twilight of their years. But like all stereotypes there are exceptions to the rule. This book argues that properly done, income investing can be just as rewarding as common stock investing with a lot less risk. Well written the book convinces the reader that consideration of fixed income securities must form a part of portfolio construction. It does so in a manner which demystifies and explains how fixed income securities work.


The Good News

A good book which explains in an understandable manner to the new investor the various types of fixed income securities and how they operate.


The Bad News

The book states at the outset it does not endeavor to provide a comprehensive review of all things related to fixed income securities. Therefore, while this is a good book for the beginning investor in fixed income securities, at some point investors will need to seek out additional materials to further their education.


The Bottom Line

I came away more knowledgeable about fixed income securities and believe it is a good book for those looking to gain knowledge on fixed income securities.


Other Related Reading:

Tuesday, June 05, 2007

Invest In Value - Investing Resource Review

Invest In Value


A new site I found the other day that provides value to a new investor is Invest In Value. The site is based on the teachings of Benjamin Graham as found in The Intelligent Investor. Overall, it is one of the more comprehensive sits for those wanting to understand Benjamin Graham's teachings.

Invest In Value provides a detailed summary of Benjamin Graham's approach to value investing. Invest In Value also sets forth in an easy to understand manner the rules Benjamin Graham set forth for defensive or enterprising investors. Finally, the site does an excellent job explaining Benjamin Graham's simple formula on how to value growth stocks.

While the information found on Invest In Value is available elsewhere, Invest In Value saves the new investor the time locating and collecting that information. I recommend new investors take a look.


Invest In Value

Friday, June 01, 2007

Online Discount Option Stock Brokers - Update

I have added another stock broker to my online discount option stock brokers review.


OptionsHouse

OptionsHouse is a new broker (January 07) that offers aggressive pricing for option traders. The cost for options trades are a flat $9.95. So for one contract you pay $9.95, 10 contracts $9.95, and fifty option contracts $9.95.

While OptionsHouse is a new brokerage it was given four stars by Barron's in the March 2007 stock broker review and rated as one of the best brokers for options traders.

For those who trade high volume contracts it may be worth a look.