Wiser Trader Stocks and Options Newsletter

______________________________________________________________________________

 

Issue No. 68   March 6, 2006                         Prescott, Arizona                       Systems@WiserTrader.com

______________________________________________________________________________

 

1.0   Trading

 

      After the first weekend of the month, it is time to check the performance of our stock filters for stocks filtered a year ago.

 

1.1 Filter Studies

 

      Continuing with filter performance studies, the latest 1 year period is shown at the bottom of Table 1.  Details of the filters can be found on the web site.  One objective is to find a parameter that describes how S&P 500 performance affects profits for the previous year.  Currently we are tracking filter performance with the S&P 500 Index 30-day SMA (simple moving average) relative to its 200-day SMA for the dates shown. 

 

 

Table 1

1 Year Filter Performance versus the S&P 500 Index

Using No Trailing Stop

Year Ending

Prior Year S&P 500

S&P 500

SMA 30 vs SMA 200

Growth $15-$40 Filter

Growth >$40 Filter

Absolute Value Filter

Relative Value Filter

9/02/05

9.4%

+2.8%

60.1%

40.7%

19.3%

50%

9/30/05

8.6%

+1.8%

25.4%

61.4%

12.3%

24.1

11/04/05

8.0%

-0.1%

8.2%

14.8%

4.4%

-0.6%

12/02/05

6.2%

+1.9%

24.6%

9.6%

17.0%

34.7%

01/06/06

8.2%

+4.1%

39.8%

50.3%

27.8%

28.3%

02/03/06

6.1%

+4.2%

34.8%

60.7%

11.5%

34.3%

03/03/06

5.7%

+3.5%

32.7%

26.4%

11.0%

29.7%

 

      The data continues to confirm that stocks selected by either filter do best when the S&P 500 pulls upward away from its 200 day SMA.  The performance shown is for cases where no trailing stops were used.

 

 

© 2005 WiserTrader.com, LLC.  Members of wisertrader.com are neither licensed brokers nor licensed advisors.  Trades discussed represent recommendations made by the editor for the wisertrader.com portfolio.  The newsletter and web site are for information only and should not be considered as personal advice.  While it is believed that the posted information is factual, mistakes can be made in transcription.  Investors should trade stocks only after verifying all information and consulting with a licensed broker or adviser.  WiserTrader.commarkets third party trading systems but has no other affiliation with trading system companies.

1.2 Trailing Stop Settings

 

     Table 2 shows how typical profits change as the trailing stop is widened from -10% to -100%, essentially no stop setting at all.  One factor in such performance is that the S&P 500 has been in a bull market over the past year, all be it with a saw tooth rising wedge pattern.  Another factor is the quality of the filters themselves.  In some cases, a slight advantage is seen in using a trailing stop for the most recent 1-year period.  For many past cases, not using a trailing stop has resulted in better performance.  Shaded areas of the table show where stops were not triggered.

 

      In some cases, a fixed trailing stop setting X% can be improved upon by applying a trailing stop to each individual stock based on its highest percentage gain.  The variable value applied to stocks individually is,

 

        Variable trailing stop percentage = Highest_%Gain / 3 - X%         (no tighter than -10%)

 

      This effectively tightens the trailing stop as the stock price rises in order to preserve gains.  A variable trailing stop was, in many cases, superior to a fixed trailing stop over the past year.  The improvement was more likely when the trailing stop setting is narrower than -35%.  Results are mixed in the data below.  This might be the result of choppy market conditions.

 

Table 2

1-Year %Gains with Variable and Fixed Trailing Stop Settings

 

Absolute Value

Relative Value

Growth $15 to $40

Growth > $40

Stop Loss Setting (%)

Variable Trailing Stop

Fixed Trailing Stop

Variable Trailing Stop

Fixed Trailing Stop

Variable Trailing Stop

Fixed Trailing Stop

Variable Trailing Stop

Fixed Trailing Stop

10

9.2%

9.2%

2.2%

-8.6%

18.2%

17.3%

13.5%

13.5%

15

12.7%

12.5%

3.3%

2.2%

28.9%

31.6%

20.8%

19.7%

20

11.0%

12.7%

26.6%

25.7%

28.9%

31.6%

25.1%

24.2%

25

11.0%

11.0%

25.0%

25.3%

27.3%

23.4%

26.9%

26.9%

30

11.0%

11.0%

25.0%

25.3%

34.9%

29.4%

32.3%

31.5%

35

11.0%

11.0%

29.0%

29.0%

34.9%

29.4%

31.2%

30.4%

40

11.0%

11.0%

29.0%

29.0%

36.7%

32.7%

29.6%

28.8%

50

11.0%

11.0%

29.7%

29.7%

36.6%

32.7%

29.6%

29.6%

60

11.0%

11.0%

29.7%

29.7%

36.6%

32.7%

28.5%

28.5%

70

11.0%

11.0%

29.7%

29.7%

36.6%

32.7%

27.0%

27.7%

80

11.0%

11.0%

29.7%

29.7%

32.7%

32.7%

26.4%

27.2%

90

11.0%

11.0%

29.7%

29.7%

32.7%

32.7%

26.4%

27.2%

100

11.0%

11.0%

29.7%

29.7%

32.7%

32.7%

26.4%

27.2%

 

 

      Applying trailing stops to individual stocks may seem like many details to keep track of, but not really.  The easiest way is to put the data and formulas in an Excel spreadsheet and let XLQ software automatically update stock price values from Yahoo and MSN. 

 

 

 

2.0 Market Analysis

 

      Little has changed since last week’s focus on interest rates.  Home sales declined a few percent, as would be expected, and unemployment remained low.  As we enter warnings season with rising oil prices, the markets can be expected to remain choppy and mixed.

 

      Key industry ETF’s in Table 2A are Biotech and Semiconductors, which confirm the NASDAQ.  Transportation confirms the Dow Jones Industrial Average according to Dow Theory.  Banking and Financials are confirming indicators for the S&P 500.  Gold and Real Estate are respective indicators for the inverse health of the currency (inflation) and the capacity for consumer spending. 

 

 

Table 2A

Indices, Key Industry ETF’s and Sector SPDR’s

 

1 month

1 wk ago

2 wks ago

3 wks ago

4 wks ago

Dow Jones Industrial Index

2.1%

-0.4%

-0.5%

1.8%

1.2%

NASDAQ Composite Index

1.8%

0.7%

0.2%

0.9%

0.0%

NYSE Composite Index

1.8%

-0.2%

0.2%

1.6%

0.2%

S & P 500 Index

1.5%

-0.1%

0.4%

1.4%

-0.3%

Russell 2000 Index

2.0%

0.2%

0.8%

1.9%

-1.0%

GLD, GOLD

-0.4%

1.2%

1.2%

0.3%

-3.0%

RKH, Banking

3.9%

-1.9%

2.0%

2.3%

1.6%

IYT, Transportation

6.0%

1.5%

0.9%

2.1%

1.4%

SMH, Semiconductors

2.3%

2.7%

-2.5%

-0.6%

2.7%

BBH, Biotechnology

-1.1%

-1.4%

0.9%

2.7%

-3.1%

IYR, Real Estate

2.8%

-0.6%

0.6%

3.3%

-0.4%

OIH, Oil

-4.4%

2.2%

2.5%

-4.4%

-4.6%

XLE, Energy

-2.0%

0.9%

1.2%

0.9%

-4.9%

XLU, Utilities

2.0%

-0.7%

0.7%

1.6%

0.4%

XLB, Materials

2.1%

0.1%

0.2%

2.4%

-0.6%

XLI, Industrial

4.1%

0.2%

0.4%

2.1%

1.3%

XLK, Technology

3.4%

1.4%

-1.0%

1.3%

1.7%

XLV, Healthcare

1.1%

-1.0%

0.0%

2.0%

0.1%

XLF, Financials

3.0%

-1.1%

1.4%

1.6%

1.1%

XLP, Consumer Staples

1.4%

-0.5%

0.2%

1.8%

-0.1%

XLY, Consumer Discretionary

1.0%

0.1%

-0.5%

1.1%

0.4%

 

 

 

Volatility

Indicator

Current

Last Week

2 Weeks Ago

Complacent

Cautious

VIX *

12.0

11.5

12.0

< 20

> 50

VXN **

16.3

15.2

15.0

< 30

> 70

*   Below 20 day SMA = Short-term buy signal.

** Above 20 day SMA = Short-term sell signal.

 
 
 

 

 

 

 

 

      Figure 1 compares index tracking stocks for the major averages with key ETF’s and Sector SPDR’s.

 

 

FIGURE 1

 

 


 

 

Table 2C

Market Summary


 
 
 

 
 Major Indices 
 For the Past Week:
 Dow Jones     -0.4%
 NASDAQ        +0.7%
 S&P500 Index  -0.2%
 Russell 2000  +0.2%
 NYSE          -0.1%
 
 30 Year Bond 4.660%
 10 Year Note 4.684%
 
 Leading Industries
 For the Past Week:
 Distillers & Vintners 
 Consumer Electronics 
 Telecommunications Equipment 
 Platinum & Precious Metals 
 Semiconductors 
 Technology Hardware & Equipt 
 Aerospace & Defense 
 Insurance Brokers 
 Oil Equipment & Services 
 Financial Administration                 
 
 Lagging Industries
 For the Past Week:
 Gold Mining 
 Tires 
 Home Construction 
 Automobiles 
 Specialized Consumer Services 
 Transportation Services 
 Automobiles & Parts 
 Nondurable Household Products 
 Household Goods 
 Pipelines        
          
 Leading Industries
 For the Past Month:
 Insurance Brokers 
 Consumer Electronics 
 Recreational Products 
 Fixed Line Telecommunications 
 Commercial Vehicles & Trucks 
 Defense 
 Telecommunications 
 Airlines 
 Home Improvement Retailers 
 Industrial Engineering     
 
 Lagging Industries
 For the Past Month:
 General Mining 
 Automobiles 
 Gold Mining 
 Tires 
 Mining 
 Automobiles & Parts 
 Nonferrous Metals 
 Travel & Tourism 
 Internet 
 Exploration & Production                     
 
 Crude Oil $63.67
 
 Gold for the past 30 days:
 USD    -0.23%
 CAD    -1.04%
 CHF    -0.03%
 GBP    +0.19%
 EUR    -0.40%
 JPY    -2.43%

 
 
 
 
 
 
 
 
 
 

3.0 Procedure

 

      The following watch lists contain stock candidates for consideration.  They are not necessarily trades.  Categories include checklists for insider buying and cash rich companies, as well as, filters that employ stock picking methods used by master traders. 

 

      Current stock rankings are based on the degree to which stocks are overbought or over sold based on the 28-period Williams %R for the past two trading days.  Two columns are labeled “%R1” and “%R2” with “%R2” indicating the Williams %R for the most recent trading day.  Of course, values more negative than -80 are oversold and those less negative than -20 are overbought.

 

      One should keep in mind that oversold stocks are not necessarily ready to move upward.  They could very well be in a condition of continuous decline.  The lists are meant to serve as a starting point for further due diligence. 

 

      A column labeled “Monthly % Gain” was added to show the inverse relationship between price action over the past month and the Williams %R.  The change from a 10-period Williams %R with a weekly percent change to a 28-period Williams %R with a monthly percent change was done to reflect a longer term view.

 

      The “Reference” is the date that a stock passed the indicated filter and was first added to or returned to the list.  The “% Change” is how the price has changed since the reference date.  Stocks that are down 10% or more after being listed are removed for a period of about two months.  The “% from Max” is the percentage the price has declined from the maximum price reached since the reference date.  Stocks that are down 8% from their highs after being listed are flagged in yellow.  Stocks that are down 15% from their highs after being listed are removed for two months.  More information on filters is available on the web site.

 

      A performance summary of filtering techniques for checklists and master trader selection methods is given in Table 3A. 

 

 

Table 3A

Stock Filter Summary

Filter

Avg. % Change Since Listed

Avg. % Change Friday

1 Month

1 Week Ago

2 weeks Ago

3 Weeks Ago

4 Weeks Ago

Net Insider Buying

11.8%

-0.4%

0.0%

0.0%

-0.5%

1.1%

-0.8%

Cash Rich Companies

4.2%

-0.4%

-0.5%

-3.6%

1.0%

0.2%

2.2%

Price to Free Cash Flow

-0.3%

0.8%

-3.0%

2.9%

-1.3%

-5.0%

0.5%

Growth Momentum Stocks

14.1%

-0.3%

4.4%

0.3%

2.0%

1.3%

0.9%

Lynch Stocks

24.1%

-0.3%

3.3%

0.6%

2.8%

0.7%

-0.8%

Buffett Stocks

17.9%

0.2%

0.9%

0.1%

2.0%

0.2%

-1.4%

Graham Stocks

11.2%

-0.9%

0.9%

-1.5%

0.5%

2.2%

-0.2%

Templeton Stocks

3.4%

-0.7%

0.6%

-1.2%

1.7%

1.1%

-0.9%

 Zweig Stocks

15.1%

-0.3%

3.8%

0.0%

2.6%

1.7%

-0.3%

Average Long Stocks

11.3%

-0.3%

1.1%

-0.3%

1.2%

0.4%

-0.1%

 

 

 

Key

Passed Recent Filter

Price declined by half of stop loss setting

Oversold  based on  Williams %R  (%R2 is most recent)

Overbought based on Williams %R  (%R2 is most recent)

 

 

 

      Companies that have experienced net insider buying within the past 6 months of 5% or more of issued stock are listed in Table 3B.  These stocks should also appear in one of the master trader screens or meet additional screening criteria before being given serious consideration.  This list is a mixture of stocks that are optionable and those that are not.

 

 

Table 3B

Net Insider Buying Check List

Stock

Reference

% Chg

Company

Sector

Industry

% from Max

Monthly % Gain

%R1

%R2

NAHC

02/24/06

-0.9%

National Atlantic Holdings Corporation

Financial

Insurance (Property & Casualty)

-4.7%

-4.1%

-35

-100

ULBI

02/17/06

-5.3%

Ultralife Batteries, Inc.

Technology

Electronic Instruments & Controls

-5.3%

-3.4%

-84

-93

CWEI

12/09/05

0.0%

Clayton Williams Energy, Inc.

Energy

Oil & Gas Operations

-14.7%

-9.2%

-76

-69

VSTA

10/21/05

5.8%

VistaCare, Inc.

Health Care

Healthcare Facilities

-6.2%

-3.4%

-70

-64

SOMX

01/13/06

38.6%

Somaxon Pharmaceuticals, Inc.

Health Care

Biotechnology & Drugs

-10.9%

-4.2%

-41

-62

MEAD

12/23/05

16.4%

Meade Instruments Corp.

Technology

Scientific & Technical Instruments

-9.8%

-6.2%

-53

-56

MMLP

11/25/05

0.0%

Martin Midstream Partners L.P.

Transportation

Water Transportation

-7.4%

0.4%

-52

-51

NTOP

01/20/06

0.0%

Net2Phone, Inc.

Services

Communications Services

-1.0%

0.5%

-50

-50

LXU

12/23/05

0.8%

LSB Industries, Inc.

Basic Materials

Chemical Manufacturing

-4.9%

-4.9%

-38

-45

SNSS

12/16/05

24.5%

Sunesis Pharmaceuticals, Inc.

Health Care

Major Drugs

-2.6%

25.1%

-45

-39

NXTM

01/06/06

7.2%

NxStage Medical, Inc.

Health Care

Biotechnology & Drugs

-4.0%

11.5%

-30

-35

MBRX

10/14/05

54.3%

Metabasis Therapeutics, Inc.

Health Care

Biotechnology & Drugs

-1.6%

3.0%

-37

-31

 

 

 

      Companies with net cash positions that comprise at least 40% of their share price are listed in Table 3C.  These stocks should also appear in one of the master trader screens or meet additional screening criteria before being given serious consideration.  Again, this list is a mixture of stocks that are optionable and those that are not.

 

 

Table 3C

Capital Rich Companies Check List

Stock

Reference

% Chg

Company

Sector

Industry

% from Max

Monthly % Gain

%R1

%R2

HRAY

03/03/06

0.0%

Hurray! Holding Co., Ltd. (ADR)

Services

Communications Services

0.0%

-1.1%

-93

-87

AMIE

03/03/06

0.0%

Ambassadors International, Inc.

Services

Personal Services

0.0%

-4.8%

-54

-77

WSC

07/01/05

12.7%

Wesco Financial Corporation

Conglomerates

Conglomerates

0.0%

4.5%

-4

0

 

 

      Table 3D was added to contain companies having a low price to free cash flow (P-FCF) less than 5.  Companies having P-FCF less than 10 are typically capable of financing the purchase of all their outstanding shares of stock.

 

 

Table 3D

Price to Free Cash Flow Companies Check List

Stock

Reference

% Chg

Company

Sector

Industry

% from Max

Monthly % Gain

%R1

%R2

BBI

01/20/06

-0.3%

Blockbuster Inc.

Services

Recreational Activities

-8.5%

-3.0%

-61

-57

 

 

      For the Peter Lynch screen in Table 3E, the number of selections is reduced by selecting only optionable stocks having P/E’s less than 30. 

 

 

Table 3E

Peter Lynch Value Watch List

Stock

Reference

% Chg

Company

Sector

Industry

% from Max

Monthly % Gain

%R1

%R2

AZN

02/03/06

-0.6%

AstraZeneca PLC (ADR)

Health Care

Major Drugs

-0.6%

-0.6%

-66

-61

TM

12/13/04

41.0%

Toyota Motor Corporation (ADR)

Consumer Cyclical

Auto & Truck Manufacturers

-2.7%

3.0%

-27

-42

CHL

03/18/05

42.0%

China Mobile (Hong Kong) Limited (ADR)

Services

Communications Services

-6.4%

1.7%

-21

-37

SKM

02/07/05

19.3%

SK Telecom Co., Ltd. (ADR)

Services

Communications Services

-2.0%

1.3%

-7

-20

KOF

04/29/05

35.8%

Coca-Cola FEMSA, S.A. (ADR)

Consumer Non-Cyclical

Beverages (Non-Alcoholic)

-0.4%

4.7%

-19

-14

PKX

02/17/06

7.9%

POSCO (ADR)

Basic Materials

Iron & Steel

-0.4%

0.3%

-12

-11

BTI

08/12/05

23.6%

British American Tobacco (ADR)

Consumer Non-Cyclical

Tobacco

0.0%

9.0%

-8

-2

 

 

 

      For the screen in Table 3F, the number of selections is reduced by selecting only optionable stocks having P/E’s less than 30. 

 

 

 

Table 3F

Growth Momentum Watch List

Stock

Reference

% Chg

Company

Sector

Industry

% from Max

Monthly % Gain

%R1

%R2

VIP

12/09/05

-1.6%

Vimpel-Communications (ADR)

Services

Communications Services

-10.4%

-4.4%

-71

-82

UNH

04/15/05

21.4%

UnitedHealth Group Inc.

Financial

Insurance (Accident & Health)

-11.3%

-5.1%

-50

-71

BHP

09/09/05

15.4%

BHP Billiton Limited (ADR)

Basic Materials

Metal Mining

-8.1%

-4.6%

-62

-67

AHC

02/03/06

0.0%

Amerada Hess Corporation

Energy

Oil & Gas - Integrated

-3.4%

-0.6%

-54

-57

APC

02/10/06

0.0%

Anadarko Petroleum Corporation

Energy

Oil & Gas Operations

-0.7%

-1.6%

-55

-53

ZIGO

12/09/05

11.3%

Zygo Corporation

Technology

Semiconductors

-4.5%

7.5%

-31

-47

GOL

12/16/05

17.3%

GOL Linhas Aereas Inteligentes SA (ADR)

Transportation

Airline

-8.4%

7.3%

-43

-47

ADTN

11/25/05

0.0%

ADTRAN, Inc.

Technology

Communications Equipment

-11.6%

-0.4%

-52

-45

MOT

12/09/05

-6.1%

Motorola, Inc.

Technology

Communications Equipment

-10.4%

3.8%

-36

-43

WSO

11/25/05

15.0%

Watsco, Incorporated

Capital Goods

Misc. Capital Goods

-3.0%

-1.5%

-41

-38

HCC

10/21/05

19.1%

HCC Insurance Holdings, Inc.

Financial

Insurance (Property & Casualty)

-2.3%

5.5%

-37

-38

LM

08/12/05

23.6%

Legg Mason, Inc.

Financial

Investment Services

-1.2%

2.1%

-48

-37

CHE

05/06/05

40.7%

Chemed Corporation

Services

Business Services

-4.1%

5.6%

-27

-35

PCU

12/02/05

27.4%

Southern Copper Corporation (USA)

Basic Materials

Metal Mining

-6.2%

-3.1%

-35

-30

DNR

03/03/06

0.0%

Denbury Resources Inc.

Energy

Oil & Gas Operations

0.0%

-0.9%

-28

-25

CHB

02/17/06

0.7%

Champion Enterprises, Inc.

Capital Goods

Construction Services

-3.8%

11.8%

-15

-23

SYT

04/08/05

32.8%

Syngenta AG (ADR)

Basic Materials

Chemical Manufacturing

-2.8%

9.2%

-8

-21

BR

02/24/06

-0.2%

Burlington Resources Inc.

Energy

Oil & Gas Operations

-0.2%

1.8%

-15

-17

OSK

03/12/05

43.0%

Oshkosh Truck Corporation

Consumer Cyclical

Auto & Truck Manufacturers

-1.4%

3.5%

-5

-13

BEN

11/04/05

13.1%

Franklin Resources, Inc.

Financial

Investment Services

-0.4%

7.3%

-8

-10

ET

10/21/05

43.3%

E*TRADE FINANCIAL Corporation

Financial

Investment Services

-0.3%

11.0%

-8

-10

GRMN

03/03/06

0.0%

Garmin Ltd.

Technology

Communications Equipment

0.0%

15.6%

-15

-7

ENDP

02/17/06

8.6%

Endo Pharmaceuticals

Health Care

Biotechnology & Drugs

0.0%

2.9%

-6

-2

WCC

02/10/06

12.6%

WESCO International, Inc.

Technology

Electronic Instruments & Controls

0.0%

12.2%

-9

-1

 

      The filter for Warren Buffet style stock picking in Table 3G is for the intermediate to long term.  Two requirements were added.  One was to include only optionable stocks in order to find LEAPS opportunities.  The other requirement was to include only those stocks having a PE of 17 or less.

 

Table 3G

Warren Buffett Value Watch List

Stock

Reference

% Chg

Company

Sector

Industry

% from Max

Monthly % Gain

%R1

%R2

FNF

10/21/05

0.4%

Fidelity National Financial

Financial

Insurance (Property & Casualty)

-7.2%

-4.2%

-94

-96

ANF

03/03/06

0.0%

Abercrombie & Fitch Co.

Services

Retail (Apparel)

0.0%

-15.3%

-84

-95

LNCR

12/27/04

-4.9%

Lincare Holdings Inc.

Health Care

Healthcare Facilities

-12.9%

-3.4%

-89

-91

NAT

02/24/06

-2.1%

Nordic American Tanker Shipping Limited

Transportation

Water Transportation

-2.1%

-5.2%

-97

-86

ABFS

04/29/05

33.1%

Arkansas Best Corporation

Transportation

Trucking

-7.7%

-0.4%

-86

-86

CCRT

12/30/05

-0.2%

CompuCredit Corporation

Financial

Consumer Financial Services

-8.3%

-2.3%

-80

-83

MDC

01/20/06

-7.6%

M.D.C. Holdings, Inc.

Capital Goods

Construction Services

-7.6%

-4.1%

-75

-83

MTH

01/27/06

-6.9%

Meritage Homes Corporation

Capital Goods

Construction Services

-8.6%

-5.8%

-65

-82

KSWS

10/14/05

0.9%

K-Swiss Inc.

Consumer Cyclical

Footwear

-15.0%

-8.3%

-79

-81

HDI

10/14/05

4.2%

Harley-Davidson, Inc.

Consumer Cyclical

Recreational Products

-8.1%

-2.2%

-69

-74

DSPG

02/07/05

10.7%

DSP Group, Inc.

Technology

Communications Equipment

-7.9%

0.4%

-57

-62

APA

02/03/06

-4.6%

Apache Corporation

Energy

Oil & Gas Operations

-5.5%

-4.6%

-62

-59

TBL

02/17/06

-1.0%

The Timberland Company

Consumer Cyclical

Footwear

-1.3%

0.2%

-53

-57

UNT

03/03/06

0.0%

Unit Corporation

Energy

Oil & Gas Operations

0.0%

1.4%

-53

-46

RI

09/02/05

30.8%

Ruby Tuesday, Inc.

Services

Restaurants

-2.6%

-0.8%

-45

-44

TOL

02/17/06

10.9%

Toll Brothers, Inc.

Capital Goods

Construction Services

-1.6%

-1.0%

-32

-39

CECO

02/17/06

-0.9%

Career Education Corp.

Services

Schools

-1.0%

-0.7%

-41

-37

SCHN

02/10/06

6.4%

Schnitzer Steel Industries, Inc.

Basic Materials

Iron & Steel

0.0%

1.4%

-46

-32

PCU

02/10/06

2.9%

Southern Copper Corporation (USA)

Basic Materials

Metal Mining

0.0%

-3.1%

-35

-30

OXY

03/03/06

0.0%

Occidental Petroleum Corporation

Energy

Oil & Gas Operations

0.0%

3.9%

-29

-24

ASH

10/28/05

23.5%

Ashland Inc.

Capital Goods

Construction Services

-0.5%

3.2%

-39

-23

NKE

09/23/05

6.2%

NIKE, Inc.

Consumer Cyclical

Footwear

-5.6%

3.1%

-25

-21

AH

02/03/06

15.2%

Armor Holdings, Inc.

Capital Goods

Aerospace and Defense

-1.6%

15.2%

-20

-19

RS

04/15/05

124.9%

Reliance Steel & Aluminum

Basic Materials

Misc. Fabricated Products

-1.5%

5.8%

-13

-15

RCII

10/21/05

47.0%

Rent-A-Center, Inc

Services

Rental & Leasing

-0.3%

15.8%

-14

-14

NUE

04/15/05

79.9%

Nucor Corporation

Basic Materials

Iron & Steel

-1.3%

6.2%

-4

-12

STLD

12/16/05

41.4%

Steel Dynamics, Inc.

Basic Materials

Iron & Steel

0.0%

9.1%

-17

-11

ACS

04/29/05

32.1%

Affiliated Computer Services, Inc.

Technology

Computer Services

-0.8%

0.7%

-7

-8

THO

04/15/05

83.4%

Thor Industries, Inc.

Capital Goods

Mobile Homes & RVs

-0.1%

13.4%

-11

-7

BTI

12/30/05

10.6%

British American Tobacco (ADR)

Consumer Non-Cyclical

Tobacco

0.0%

9.0%

-8

-2

 

 

 

 

 

 

      Stocks from Benjamin Graham’s style of utility investing are listed in Table 3H.  A requirement was added to include only those stocks having a PE of 17 or less. 

 

 

 

 

 

Table 3H

Benjamin Graham Utility Watch List

Stock

Reference

% Chg

Company

Sector

Industry

% from Max

Monthly % Gain

%R1

%R2

WPS

02/07/05

1.2%

WPS Resources Corp

Utilities

Electric Utilities

-12.5%

-1.7%

-95

-98

PNW

01/10/05

-7.2%

Pinnacle West Capital

Utilities

Electric Utilities

-13.8%

-3.1%

-88

-92

VVC

03/03/06

0.0%

Vectren Corporation

Utilities

Natural Gas Utilities

0.0%

-3.5%

-74

-91

SRE

01/10/05

29.0%

Sempra Energy

Utilities

Natural Gas Utilities

-4.2%

-0.8%

-46

-86

ATO

04/01/05

-2.5%

Atmos Energy Corporation

Utilities

Natural Gas Utilities

-11.7%

0.6%

-60

-71

CPK

05/06/05

18.1%

Chesapeake Utilities

Utilities

Natural Gas Utilities

-12.7%

-1.3%

-65

-58

WGL

12/23/05

0.5%

WGL Holdings, Inc.

Utilities

Natural Gas Utilities

-2.6%

-0.5%

-37

-47

UU

06/10/05

0.2%

United Utilities PLC (ADR)

Utilities

Electric Utilities

-2.1%

-0.1%

-36

-44

ATG

10/21/05

7.7%

AGL Resources Inc.

Utilities

Natural Gas Utilities

-2.0%

0.1%

-31

-40

OKE

11/11/05

11.4%

ONEOK, Inc.

Utilities

Natural Gas Utilities

-5.1%

11.3%

-26

-36

PGN

01/10/05

0.4%

Progress Energy, Inc.

Utilities

Electric Utilities

-3.3%

3.2%

-33

-33

UGI

12/30/05

7.3%

UGI Corporation

Utilities

Natural Gas Utilities

-2.1%

2.6%

-19

-28

KEP

01/10/05

79.3%

Korea Electric Power Corporation (ADR)

Utilities

Electric Utilities

-2.6%

4.7%

-5

-23

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

      Optionable stocks from John Templeton’s style of investing are listed in Table 3I. 

 

Table 3I

John Templeton Watch List

Stock

Reference

% Chg

Company

Sector

Industry

% from Max

Monthly % Gain

%R1

%R2

GTRC

03/03/06

0.0%

Guitar Center, Inc.

Services

Retail (Specialty Non-Apparel)

0.0%

-9.3%

-76

-99

DHI

02/03/06

-7.8%

D.R. Horton Inc.

Capital Goods

Construction Services

-10.8%

-7.8%

-77

-89

DHI

03/03/06

0.0%

D.R. Horton Inc.

Capital Goods

Construction Services

0.0%

-7.8%

-77

-89

MDC

12/30/05

-3.0%

M.D.C. Holdings, Inc.

Capital Goods

Construction Services

-10.1%

-4.1%

-75

-83