______________________________________________________________________________
Issue No. 56 – December 12, 2005
Prescott, Arizona Systems@WiserTrader.com
______________________________________________________________________________
1.0
Trading
This week continues an
analysis of the impact of various stop loss settings for growth stocks that
have been screened using variations on Dr. Stephen Cooper’s stock candidate
filter. The same group of growth stocks discussed last week was broken out
into 3 price ranges with widely varying results.
1.1 Growth Stock Price Ranges
A group of 35 growth stocks
was screened from December 2004 data using a modified form of the Stephen
Cooper stock filter. The basic filter looks for optionable NASDAQ and NYSE
stocks having an EPS growth of 80%, a 26 week % rank relative strength of 90%
and within 5% of their 52 week highs. The minimum growth stock price for this
study was $4.
Value stocks outperformed this
group of growth stocks over the past year (29% gains versus 17% gains) while the
S&P 500 had gained about 6.5% over the same period. Results also implied
that a wider trailing stop loss setting was justified for portfolios containing
both classes of stocks in a rising market.
While this was true for
value stocks and the group of growth stocks taken as a whole, the picture
changes when growth stocks are broken out into price ranges of $4 to $15, $15
to $40 and above $40, as seen in Table 1. For the lowest price range of $4 to
$15, a trailing stop loss of $25% would have saved the investor money, stopping
out 80% of the stocks in that group in the 3rd and 4th
month with a net loss of -4.87%. Clearly the use of a trailing stop would have
been beneficial for growth stocks in the lowest price range.
For the mid range of $15 to
$40 growth stocks in Table 1, using a trailing stop loss would have been a
hindrance that reduced profits. A 25% stop loss would have stopped out 71% of
the mid range price group in the 5th month with a net loss of -1.85%.
Without a trailing stop, the mid price range group gained 19.65% for the year.
© 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.
Similarly, for the high
range of greater than $40 growth stocks, using a stop loss would have been a
hindrance that reduced profits. A 25% stop loss would have stopped out 77% of
the highest price range stocks in the 6th month with a net gain of
16.87%. Without a trailing stop, the highest price range group gained 28.69%
for the year, nearly the same gain as for the two groups of value stocks.
Details for the value stock filters are given in Table 2 for reference.
Table 1
Average Percentage
Gains Using A Stop Loss
|
Trailing Stop Setting (%)
|
Absolute Value Filter
|
Industry Relative Value Filter
|
Growth Filter
All Prices
|
Growth Filter
$4 - $15
|
Growth Filter
$15 -$40
|
Growth Filter
>$40
|
|
10
|
8.17
|
9.56
|
0.66
|
-4.71
|
-3.70
|
8.43
|
|
15
|
9.96
|
14.76
|
6.85
|
-2.73
|
-1.51
|
21.48
|
|
20
|
13.65
|
13.37
|
4.80
|
-2.73
|
-3.04
|
17.96
|
|
25
|
21.04
|
13.85
|
4.67
|
-4.87
|
-1.85
|
16.87
|
|
30
|
25.46
|
12.99
|
7.37
|
-8.06
|
5.45
|
15.82
|
|
35
|
31.93
|
23.08
|
8.26
|
-15.76
|
3.13
|
24.22
|
|
40
|
29.86
|
29.44
|
9.54
|
-16.67
|
7.26
|
22.59
|
|
50
|
29.86
|
29.78
|
11.34
|
-23.52
|
10.04
|
26.45
|
|
60
|
29.86
|
29.78
|
14.38
|
-28.21
|
15.97
|
28.69
|
|
70
|
29.12
|
29.78
|
17.10
|
-21.73
|
19.65
|
28.69
|
|
80
|
29.23
|
29.78
|
16.81
|
-23.73
|
19.65
|
28.69
|
|
90
|
29.23
|
29.78
|
16.53
|
-25.67
|
19.65
|
28.69
|
|
100
|
29.23
|
29.78
|
16.71
|
-24.4
|
19.65
|
28.69
|
Table 2
Value Filters
|
Valuation Metric
|
Stock Value That
Reduced Risk of Loss *
|
Corresponding Ratio
of Stock Value to Industry Value *
|
|
Price to Earnings (PE)
|
(7) 10 to 15
|
0.5 to 0.75 (1)
|
|
Price to Book (PB)
|
< 1
|
0.5 to 0.75 (1)
|
|
Price to Sales (PS)
|
< 0.5 (1)
|
0.5 to 0.75 (1)
|
|
Return on Equity (ROE)
|
10 to 20
|
2 to 3
|
|
Price to Free Cash Flow (P-FCF)
|
< 5 (10)
|
(0.5) 0.75 to 1
|
|
* Numbers in parenthesis are to extend the range.
|
In conclusion, not all
growth stocks are equal. Over the past year, low priced growth stocks under
$15 did not sustain their price gains as well as higher priced growth stocks.
Higher priced growth stocks above $15 showed a higher level of quality as to
their ability to sustain their price gains. Growth stocks priced above $40
gained as much as value stocks without the use of a trailing stop. This confirms
Dr. Cooper’s use of growth stocks priced greater than $50 in his stock
candidate filter used for trading options.
2.0 Market Analysis
The markets continued their
sideways movement this week, losing a little ground. Sentiment seems to be
focused on anticipation of the FOMC policy statement this coming week
concerning whether the end of the tightening period is near. Notably, the VIX
and VXN have moved above their 20 day simple moving averages, not an encouraging
sign.
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 Industrials
|
0.9%
|
-0.9%
|
-0.5%
|
1.5%
|
0.8%
|
|
NASDAQ
|
2.5%
|
-0.7%
|
0.5%
|
1.6%
|
1.1%
|
|
S & P 500
|
2.0%
|
-0.5%
|
-0.2%
|
1.6%
|
1.1%
|
|
Russell 2000
|
3.3%
|
-0.3%
|
1.0%
|
1.7%
|
0.8%
|
|
GLD, GOLD
|
12.0%
|
4.1%
|
1.8%
|
2.0%
|
3.5%
|
|
RKH, Banking
|
0.0%
|
-0.5%
|
-1.2%
|
2.4%
|
-0.6%
|
|
IYT, Transportation
|
0.7%
|
-0.9%
|
-0.9%
|
0.8%
|
1.7%
|
|
SMH, Semiconductors
|
5.4%
|
-2.5%
|
3.9%
|
2.7%
|
1.4%
|
|
BBH, Biotechnology
|
-1.1%
|
-2.3%
|
-0.4%
|
-0.3%
|
2.0%
|
|
IYR, Real Estate
|
2.5%
|
-0.7%
|
-0.5%
|
2.5%
|
1.2%
|
|
OIH, Oil
|
16.6%
|
3.3%
|
1.6%
|
6.0%
|
4.9%
|
|
XLE,
Energy
|
9.2%
|
1.3%
|
0.3%
|
4.0%
|
3.3%
|
|
XLU,
Utilities
|
4.4%
|
1.4%
|
-0.6%
|
1.9%
|
1.7%
|
|
XLB,
Materials
|
5.6%
|
0.3%
|
1.4%
|
1.4%
|
2.4%
|
|
XLI,
Industrial
|
3.0%
|
-0.8%
|
0.3%
|
1.0%
|
2.5%
|
|
XLK,
Technology
|
3.2%
|
-0.9%
|
0.7%
|
1.4%
|
1.9%
|
|
XLV,
Healthcare
|
0.4%
|
0.1%
|
-0.3%
|
0.0%
|
0.6%
|
|
XLF,
Financials
|
0.9%
|
-0.7%
|
-1.0%
|
2.4%
|
0.3%
|
|
XLP,
Consumer Staples
|
-0.6%
|
-0.7%
|
-0.7%
|
1.3%
|
-0.4%
|
|
XLY,
Consumer Discretionary
|
1.1%
|
-0.7%
|
-0.3%
|
1.5%
|
0.5%
|
Market sentiment is
shown in Table 2B.
Table 2B
Market Sentiment
|
Sentiment Indicator
|
Current
|
Last Week
|
2 Weeks Ago
|
Complacent
|
Cautious
|
|
VIX **
|
11.7
|
11.0
|
10.9
|
< 20
|
> 50
|
|
VXN ***
|
15.1
|
13.9
|
13.9
|
< 30
|
> 70
|
|
Put/Call Ratio
|
0.580
|
0.576
|
0.5.86
|
< 0.6
|
> 0.7
|
|
%Bulls - %Bears
|
34.3%
|
34.7%
|
30.4%
|
> 29%
|
< 20%
|
|
** Above 20 day SMA = Sell signal.
*** Above
20 day SMA = 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 -0.9%
NASDAQ -0.7%
S&P500 Index -0.5%
Russell 2000 -0.2%
30 Year Bond 4.736%
10 Year Note 4.537%
Leading Industries
For the Past Week:
Gold Mining
Platinum & Precious Metals
Mining
Oil Equipment & Services
Oil Equipment, Services & Dis
General Mining
Computer Hardware
Aerospace & Defense
Exploration & Production
Nonferrous Metals
Lagging Industries
For the Past Week:
Specialized Consumer Services
Home Construction
Semiconductors
Financial Administration
Recreational Services
Water
Building Materials & Fixtures
Construction & Materials
Heavy Construction
Soft Drinks
Leading Industries
For the Past Month:
Nonferrous Metals
Platinum & Precious Metals
Paper
Gold Mining
Forestry & Paper
Furnishings
Industrial Metals
Oil Equipment & Services
Steel
Hotels
Lagging Industries
For the Past Month:
Toys
Medical Supplies
Tobacco
Automobiles
Pharmaceuticals
Consumer Electronics
Pharmaceuticals & Biotech
Publishing
Food Products
Food Producers
Crude Oil $59.39
Gold for the past 30 days:
USD +12.77%
CAD + 9.82%
CHF +12.12%
GBP +12.18%
EUR +11.88%
JPY +15.12%
3.0 Procedure
The following watch lists contain
stock candidates for consideration. They are not necessarily trades.
Categories include check lists 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 10-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.
A column labeled “Weekly %
Gain” was added to show the inverse relationship between price action over the
past week and the Williams %R.
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.
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 check lists 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
|
7.4%
|
0.1%
|
9.0%
|
3.0%
|
0.9%
|
3.5%
|
1.1%
|
|
Cash Rich Companies
|
-0.3%
|
0.9%
|
1.2%
|
-0.3%
|
1.2%
|
0.5%
|
-0.1%
|
|
Price to Free Cash Flow
|
1.6%
|
-0.3%
|
1.1%
|
-2.9%
|
-0.2%
|
1.3%
|
2.8%
|
|
Growth Momentum Stocks
|
8.7%
|
0.4%
|
5.8%
|
1.2%
|
0.5%
|
2.4%
|
1.6%
|
|
Lynch Stocks
|
20.1%
|
0.1%
|
2.7%
|
-1.8%
|
1.8%
|
1.2%
|
1.5%
|
|
Buffett Stocks
|
18.5%
|
0.3%
|
2.6%
|
-1.4%
|
0.8%
|
2.4%
|
0.8%
|
|
Graham Stocks
|
11.7%
|
0.7%
|
3.9%
|
0.3%
|
0.7%
|
2.5%
|
0.4%
|
|
Templeton Stocks
|
7.0%
|
0.4%
|
2.1%
|
-0.2%
|
0.3%
|
1.2%
|
0.9%
|
|
Zweig Stocks
|
15.9%
|
0.5%
|
8.0%
|
2.0%
|
0.1%
|
3.6%
|
2.0%
|
|
Average Long Stocks
|
10.1%
|
0.3%
|
4.1%
|
0.0%
|
0.7%
|
2.1%
|
1.2%
|
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
|
Weekly % Gain
|
%R1
|
%R2
|
|
VSTA
|
10/21/05
|
5.4%
|
VistaCare,
Inc.
|
Health
Care
|
Healthcare
Facilities
|
-3.9%
|
-2.9%
|
-62
|
-89
|
|
ISO
|
12/09/05
|
0.0%
|
ISCO International,
Inc.
|
Technology
|
Semiconductors
|
0.0%
|
0.0%
|
-89
|
-80
|
|
CLRT
|
11/18/05
|
2.4%
|
Clarient,
Inc.
|
Technology
|
Scientific
& Technical Instruments
|
-10.6%
|
-2.3%
|
-80
|
-73
|
|
RNAI
|
12/09/05
|
0.0%
|
Sirna
Therapeutics, Inc.
|
Health
Care
|
Biotechnology
& Drugs
|
0.0%
|
-4.3%
|
-73
|
-71
|
|
MMLP
|
11/25/05
|
0.0%
|
Martin
Midstream Partners L.P.
|
Transportation
|
Water
Transportation
|
-3.5%
|
-0.1%
|
-99
|
-69
|
|
MTRX
|
10/14/05
|
5.2%
|
Matrix
Service Company
|
Capital
Goods
|
Construction
Services
|
-5.8%
|
-1.7%
|
-48
|
-51
|
|
PCTY
|
09/16/05
|
30.2%
|
Party City
Corporation
|
Services
|
Retail
(Specialty Non-Apparel)
|
-0.2%
|
-0.1%
|
-53
|
-50
|
|
ULBI
|
12/02/05
|
2.2%
|
Ultralife
Batteries, Inc.
|
Technology
|
Electronic
Instruments & Controls
|
0.0%
|
2.2%
|
-69
|
-39
|
|
XGEN
|
11/25/05
|
0.0%
|
Xenogen
Corporation
|
Technology
|
Scientific
& Technical Instruments
|
-3.4%
|
19.8%
|
-36
|
-35
|
|
MEAD
|
09/30/05
|
2.6%
|
Meade
Instruments Corp.
|
Technology
|
Scientific
& Technical Instruments
|
-2.2%
|
0.4%
|
-79
|
-33
|
|
MBRX
|
10/14/05
|
18.4%
|
Metabasis
Therapeutics, Inc.
|
Health
Care
|
Biotechnology
& Drugs
|
0.0%
|
17.0%
|
0
|
-28
|
|
AUXL
|
12/02/05
|
6.3%
|
Auxilium
Pharmaceuticals, Inc.
|
Health
Care
|
Biotechnology
& Drugs
|
-4.3%
|
6.3%
|
-14
|
-20
|
|
CRYO
|
11/25/05
|
0.0%
|
CryoCor,
Inc.
|
Health
Care
|
Medical
Equipment & Supplies
|
-1.0%
|
4.5%
|
-26
|
-20
|
|
TRMA
|
10/28/05
|
6.5%
|
Trico
Marine Services Inc
|
Energy
|
Oil Well
Services & Equipment
|
0.0%
|
4.7%
|
-12
|
-19
|
|
CWEI
|
12/09/05
|
0.0%
|
Clayton
Williams Energy, Inc.
|
Energy
|
Oil &
Gas Operations
|
0.0%
|
1.1%
|
-10
|
-10
|
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
|
Weekly % Gain
|
%R1
|
%R2
|
|
WSC
|
07/01/05
|
-0.7%
|
Wesco
Financial Corporation
|
Conglomerates
|
Conglomerates
|
-1.1%
|
0.0%
|
-67
|
-50
|
|
KEYN
|
11/25/05
|
0.0%
|
Keynote
Systems, Inc.
|
Technology
|
Computer
Services
|
-1.2%
|
-0.6%
|
-71
|
-49
|
Since the capital rich
companies table is normally sparse, 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
|
Weekly % Gain
|
%R1
|
%R2
|
|
TEO
|
12/09/05
|
0.0%
|
Telecom
Argentina S.A. (ADR)
|
Services
|
Communications
Services
|
0.0%
|
-6.4%
|
-95
|
-95
|
|
PCW
|
11/11/05
|
1.3%
|
PCCW Ltd.
(ADR)
|
Services
|
Communications
Services
|
-4.3%
|
-4.2%
|
-76
|
-78
|
|
PLNR
|
11/25/05
|
-0.9%
|
Planar
Systems, Inc.
|
Technology
|
Electronic
Instruments & Controls
|
-3.3%
|
-3.3%
|
-79
|
-73
|
|
F
|
11/11/05
|
2.6%
|
FORD MOTOR
|
Consumer
Cyclical
|
Auto &
Truck Manufacturers
|
-4.1%
|
0.4%
|
-66
|
-64
|
|
PBR
|
11/25/05
|
5.1%
|
Petroleo
Brasileiro S.A. (ADR)
|
Energy
|
Oil &
Gas - Integrated
|
-3.1%
|
-1.2%
|
-26
|
-37
|
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
|
Weekly % Gain
|
%R1
|
%R2
|
|
CHL
|
03/18/05
|
42.5%
|
China Mobile (Hong Kong) Limited (ADR)
|
Services
|
Communications
Services
|
-6.1%
|
-6.1%
|
-96
|
-91
|
|
SKM
|
02/07/05
|
0.0%
|
SK Telecom
Co., Ltd. (ADR)
|
Services
|
Communications
Services
|
-12.8%
|
-3.8%
|
-90
|
-89
|
|
TM
|
12/13/04
|
29.3%
|
Toyota
Motor Corporation (ADR)
|
Consumer
Cyclical
|
Auto &
Truck Manufacturers
|
-3.8%
|
-0.9%
|
-90
|
-79
|
|
KOF
|
04/29/05
|
12.3%
|
Coca-Cola
FEMSA, S.A. (ADR)
|
Consumer
Non-Cyclical
|
Beverages
(Non-Alcoholic)
|
-10.5%
|
-0.9%
|
-38
|
-55
|
|
TMX
|
06/03/05
|
25.1%
|
Telefonos
de Mexico, S.A. (ADR)
|
Services
|
Communications
Services
|
-1.6%
|
-0.3%
|
-56
|
-38
|
|
BTI
|
08/12/05
|
11.5%
|
British
American Tobacco (ADR)
|
Consumer
Non-Cyclical
|
Tobacco
|
-3.2%
|
1.5%
|
-29
|
-26
|
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
|
Weekly % Gain
|
%R1
|
%R2
|
|
VIP
|
12/09/05
|
0.0%
|
Vimpel-Communications
(ADR)
|
Services
|
Communications
Services
|
0.0%
|
-2.7%
|
-61
|
-88
|
|
MOT
|
12/09/05
|
0.0%
|
Motorola,
Inc.
|
Technology
|
Communications
Equipment
|
0.0%
|
-0.8%
|
-78
|
-71
|
|
CTX
|
11/18/05
|
-3.8%
|
Centex
Corporation
|
Capital
Goods
|
Construction
Services
|
-6.7%
|
-3.9%
|
-74
|
-68
|
|
ENDP
|
11/18/05
|
1.6%
|
Endo
Pharmaceuticals
|
Health
Care
|
Biotechnology
& Drugs
|
-3.5%
|
0.0%
|
-61
|
-68
|
|
HCC
|
10/21/05
|
10.9%
|
HCC
Insurance Holdings, Inc.
|
Financial
|
Insurance
(Property & Casualty)
|
-8.3%
|
-0.9%
|
-95
|
-68
|
|
LM
|
08/12/05
|
10.5%
|
Legg
Mason, Inc.
|
Financial
|
Investment
Services
|
-4.4%
|
-1.0%
|
-77
|
-63
|
|
BHP
|
09/09/05
|
3.5%
|
BHP
Billiton Limited (ADR)
|
Basic
Materials
|
Metal
Mining
|
-4.6%
|
-1.1%
|
-55
|
-50
|
|
AMTD
|
10/28/05
|
18.4%
|
Ameritrade
Holding Corp.
|
Financial
|
Investment
Services
|
-1.5%
|
1.8%
|
-25
|
-42
|
|
CHE
|
05/06/05
|
32.6%
|
Chemed
Corporation
|
Services
|
Business
Services
|
0.0%
|
0.3%
|
-46
|
-31
|
|
WSO
|
11/25/05
|
6.3%
|
Watsco,
Incorporated
|
Capital
Goods
|
Misc.
Capital Goods
|
-0.7%
|
1.4%
|
-24
|
-31
|
|
ADTN
|
11/25/05
|
0.0%
|
ADTRAN,
Inc.
|
Technology
|
Communications
Equipment
|
-0.4%
|
4.2%
|
-36
|
-22
|
|
ET
|
10/21/05
|
12.7%
|
E*TRADE
FINANCIAL Corporation
|
Financial
|
Investment
Services
|
-0.2%
|
0.6%
|
-17
|
-19
|
|
PCU
|
12/02/05
|
3.2%
|
Southern
Copper Corporation (USA)
|
Basic
Materials
|
Metal
Mining
|
-0.9%
|
3.2%
|
-10
|
-18
|
|
BJS
|
11/04/05
|
12.6%
|
BJ
Services Company
|
Energy
|
Oil Well
Services & Equipment
|
-1.5%
|
0.4%
|
-2
|
-18
|
|
OSK
|
03/12/05
|
15.6%
|
Oshkosh
Truck Corporation
|
Consumer
Cyclical
|
Auto &
Truck Manufacturers
|
0.0%
|
0.7%
|
-43
|
-14
|
|
BEN
|
11/04/05
|
7.4%
|
Franklin Resources
|
Financial
|
Investment
Services
|
-0.1%
|
3.3%
|
-43
|
-13
|
|
VTIV
|
11/11/05
|
-1.2%
|
Ventiv
Health, Inc.
|
Services
|
Business
Services
|
-3.0%
|
0.6%
|
-14
|
-13
|
|
ZIGO
|
12/09/05
|
0.0%
|
Zygo
Corporation
|
Technology
|
Semiconductors
|
0.0%
|
14.5%
|
-20
|
-10
|
|
UNH
|
04/15/05
|
36.5%
|
UnitedHealth
Group Inc.
|
Financial
|
Insurance
(Accident & Health)
|
0.0%
|
2.7%
|
-21
|
-9
|
|
SYT
|
04/08/05
|
7.5%
|
Syngenta
AG (ADR)
|
Basic
Materials
|
Chemical
Manufacturing
|
0.0%
|
0.8%
|
-14
|
-2
|
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
|
Weekly % Gain
|
%R1
|
%R2
|
|
CECO
|
09/30/05
|
-2.6%
|
Career
Education Corp.
|
Services
|
Schools
|
-10.8%
|
-9.9%
|
-71
|
-89
|
|
RCII
|
10/21/05
|
20.0%
|
Rent-A-Center,
Inc
|
Services
|
Rental
& Leasing
|
-3.4%
|
-3.1%
|
-88
|
-82
|
|
FNF
|
10/21/05
|
2.2%
|
Fidelity
National Financial
|
Financial
|
Insurance
(Property & Casualty)
|
-5.4%
|
-2.6%
|
-76
|
-81
|
|
PSUN
|
12/09/05
|
0.0%
|
Pacific
Sunwear of CA
|
Services
|
Retail
(Apparel)
|
0.0%
|
-1.9%
|
-91
|
-80
|
|
HDI
|
10/14/05
|
4.3%
|
Harley-Davidson,
Inc.
|
Consumer
Cyclical
|
Recreational
Products
|
-8.0%
|
-4.8%
|
-81
|
-74
|
|
NKE
|
09/23/05
|
5.7%
|
NIKE, Inc.
|
Consumer
Cyclical
|
Footwear
|
-2.6%
|
-1.9%
|
-76
|
-73
|
|
FOSL
|
12/02/05
|
-1.3%
|
Fossil,
Inc.
|
Consumer
Cyclical
|
Jewelry
& Silverware
|
-1.5%
|
-1.3%
|
-85
|
-73
|
|
LNCR
|
12/27/04
|
2.2%
|
Lincare
Holdings Inc.
|
Health
Care
|
Healthcare
Facilities
|
-6.4%
|
-2.2%
|
-87
|
-72
|
|
NUE
|
04/15/05
|
37.2%
|
Nucor
Corporation
|
Basic
Materials
|
Iron &
Steel
|
-3.3%
|
-1.6%
|
-41
|
-67
|
|
MIK
|
10/14/05
|
19.8%
|
Michaels
Stores, Inc.
|
Services
|
Retail
(Specialty Non-Apparel)
|
-3.3%
|
-1.5%
|
-81
|
-65
|
|
ACS
|
04/29/05
|
15.5%
|
Affiliated
Computer Services, Inc.
|
Technology
|
Computer
Services
|
-2.9%
|
-2.3%
|
-91
|
-64
|
|
DHI
|
10/21/05
|
14.3%
|
D.R.
Horton Inc.
|
Capital
Goods
|
Construction
Services
|
-3.9%
|
-3.0%
|
-43
|
-56
|
|
RS
|
04/15/05
|
70.9%
|
Reliance
Steel & Aluminum
|
Basic
Materials
|
Misc.
Fabricated Products
|
-1.5%
|
-0.6%
|
-42
|
-36
|
|
ABFS
|
04/29/05
|
32.4%
|
Arkansas
Best Corporation
|
Transportation
|
Trucking
|
-2.0%
|
1.3%
|
-33
|
-34
|
|
ASH
|
10/28/05
|
7.5%
|
Ashland
Inc.
|
Capital
Goods
|
Construction
Services
|
-0.7%
|
0.5%
|
-23
|
-30
|
|
EASI
|
09/09/05
|
22.5%
|
Engineered
Support System
|
Capital
Goods
|
Misc.
Capital Goods
|
-0.7%
|
2.3%
|
-15
|
-24
|
|
PGR
|
12/27/04
|
46.7%
|
The
Progressive Corp.
|
Financial
|
Insurance
(Property & Casualty)
|
-0.3%
|
-0.1%
|
-85
|
-22
|
|
RI
|
09/02/05
|
18.0%
|
Ruby
Tuesday, Inc.
|
Services
|
Restaurants
|
-0.7%
|
3.1%
|
-29
|
-20
|
|
DSPG
|
02/07/05
|
8.1%
|
DSP Group,
Inc.
|
Technology
|
Communications
Equipment
|
-0.6%
|
-0.2%
|
-39
|
-17
|
|
THO
|
04/15/05
|
45.5%
|
Thor
Industries, Inc.
|
Capital
Goods
|
Mobile
Homes & RVs
|
0.0%
|
1.3%
|
-17
|
-4
|
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
|
Weekly % Gain
|
%R1
|
%R2
|
|
ATG
|
10/21/05
|
2.7%
|
AGL
Resources Inc.
|
Utilities
|
Natural
Gas Utilities
|
-6.5%
|
-5.4%
|
-91
|
-96
|
|
OKE
|
11/11/05
|
1.7%
|
ONEOK,
Inc.
|
Utilities
|
Natural
Gas Utilities
|
-2.5%
|
-1.1%
|
-42
|
-92
|
|
ATO
|
04/01/05
|
-1.8%
|
Atmos
Energy Corporation
|
Utilities
|
Natural
Gas Utilities
|
-11.1%
|
-1.3%
|
-79
|
-70
|
|
CV
|
10/14/05
|
27.9%
|
Central
Vermont Public Services Corp.
|
Utilities
|
Electric
Utilities
|
-4.7%
|
-4.7%
|
-57
|
-63
|
|
PGN
|
01/10/05
|
0.5%
|
Progress
Energy, Inc.
|
Utilities
|
Electric
Utilities
|
-3.2%
|
-0.5%
|
-93
|
-59
|
|
CPK
|
05/06/05
|
19.6%
|
Chesapeake Utilities
|
Utilities
|
Natural
Gas Utilities
|
-11.6%
|
-0.4%
|
-33
|
-24
|
|
SRE
|
01/10/05
|
25.9%
|
Sempra
Energy
|
Utilities
|
Natural
Gas Utilities
|
-4.2%
|
2.2%
|
-6
|
-13
|
|
PNW
|
01/10/05
|
-1.9%
|
Pinnacle
West Capital
|
Utilities
|
Electric
Utilities
|
-8.9%
|
1.7%
|
-37
|
-10
|
|
UU
|
06/10/05
|
-1.5%
|
United
Utilities PLC (ADR)
|
Utilities
|
Electric
Utilities
|
-3.7%
|
3.2%
|
-10
|
-10
|
|
WPS
|
02/07/05
|
8.8%
|
WPS
Resources Corp
|
Utilities
|
Electric
Utilities
|
-5.9%
|
1.8%
|
-10
|
-3
|
|
KEP
|
01/10/05
|
46.3%
|
Korea
Electric Power Corporation (ADR)
|
Utilities
|
Electric
Utilities
|
-1.4%
|
8.4%
|
-13
|
-3
|
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
|
Weekly % Gain
|
%R1
|
%R2
|
|
BBBY
|
12/09/05
|
0.0%
|
Bed Bath
& Beyond Inc.
|
Services
|
Retail
(Specialty Non-Apparel)
|
0.0%
|
-2.9%
|
-88
|
-88
|
|
CHD
|
11/18/05
|
-1.6%
|
Church
& Dwight Co., Inc.
|
Consumer
Non-Cyclical
|
Personal
& Household Products
|
-2.2%
|
-1.9%
|
-36
|
-81
|
|
CPS
|
05/27/05
|
6.1%
|
ChoicePoint
Inc.
|
Services
|
Business
Services
|
-2.8%
|
-2.0%
|
-83
|
-76
|
|
SNV
|
05/27/05
|
-4.6%
|
Synovus
Financial Corp.
|
Financial
|
Regional
Banks
|
-6.8%
|
-1.2%
|
-87
|
-75
|
|
KRON
|
10/28/05
|
5.4%
|
Kronos
Incorporated
|
Technology
|
Software
& Programming
|
-3.4%
|
-2.6%
|
-71
|
-69
|
|
SFG
|
05/27/05
|
37.8%
|
StanCorp
Financial Group, Inc.
|
Financial
|
Insurance
(Life)
|
-2.4%
|
-1.6%
|
-90
|
-68
|
|
WSM
|
09/02/05
|
15.3%
|
Williams-Sonoma,
Inc.
|
Services
|
Retail
(Specialty Non-Apparel)
|
-1.5%
|
-1.1%
|
-67
|
-60
|
|
TOL
|
12/09/05
|
0.0%
|
Toll
Brothers, Inc.
|
Capital
Goods
|
Construction
Services
|
0.0%
|
-1.2%
|
-41
|
-52
|
|
MTB
|
05/27/05
|
6.4%
|
M&T
Bank Corporation
|
Financial
|
Regional
Banks
|
-2.4%
|
-0.2%
|
-88
|
-52
|
|
CAKE
|
10/21/05
|
9.2%
|
The
Cheesecake Factory Incorporated
|
Services
|
Restaurants
|
-0.2%
|
1.0%
|
-24
|
-29
|
|
AMSG
|
10/14/05
|
3.0%
|
AmSurg
Corp.
|
Health
Care
|
Healthcare
Facilities
|
-2.7%
|
6.9%
|
-66
|
-25
|
|
LOW
|
11/18/05
|
3.1%
|
Lowe's
Companies, Inc.
|
Services
|
Retail
(Home Improvement)
|
0.0%
|
0.3%
|
-19
|
-25
|
|
EASI
|
06/03/05
|
17.5%
|
Engineered
Support System
|
Capital
Goods
|
Misc.
Capital Goods
|
-0.7%
|
2.3%
|
-15
|
-24
|
|
HHS
|
10/28/05
|
4.3%
|
Harte-Hanks,
Inc.
|
Services
|
Printing
& Publishing
|
-0.4%
|
-0.4%
|
-33
|
-23
|
|
DGX
|
08/19/05
|
2.9%
|
Quest
Diagnostics Incorporated
|
Health Care
|
Healthcare
Facilities
|
-0.1%
|
1.3%
|
-23
|
-12
|
Optionable stocks from
Martin Zweig’s style of investing are listed in Table 3J.
Table 3J
Martin Zweig Watch List
|
Stock
|
Reference
|
% Chg
|
Company
|
Sector
|
Industry
|
% from Max
|
Weekly % Gain
|
%R1
|
%R2
|
|
CRDN
|
08/19/05
|
41.6%
|
Ceradyne,
Inc.
|
Capital
Goods
|
Aerospace
and Defense
|
-8.9%
|
-1.8%
|
-83
|
-85
|
|
ESI
|
11/04/05
|
3.2%
|
ITT
Educational Services
|
Services
|
Schools
|
-2.2%
|
-1.1%
|
-57
|
-75
|
|
CTX
|
10/28/05
|
11.8%
|
Centex
Corporation
|
Capital
Goods
|
Construction
Services
|
-6.7%
|
-3.9%
|
-74
|
-68
|
|
DHI
|
11/18/05
|
1.8%
|
D.R.
Horton Inc.
|
Capital
Goods
|
Construction
Services
|
-3.9%
|
-3.0%
|
-43
|
-56
|
|
POOL
|
06/10/05
|
12.6%
|
SCP Pool
Corporation
|
Consumer
Cyclical
|
Recreational
Products
|
-3.1%
|
-1.2%
|
-78
|
-56
|
|
SFY
|
10/14/05
|
14.9%
|
Swift
Energy Company
|
Energy
|
Oil &
Gas Operations
|
-4.0%
|
1.1%
|
-5
|
-48
|
|
SUN
|
11/04/05
|
12.0%
|
Sunoco,
Inc.
|
Energy
|
Oil &
Gas Operations
|
-2.6%
|
-1.5%
|
-19
|
-42
|
|
COP
|
10/28/05
|
-0.3%
|
ConocoPhillips
|
Energy
|
Oil &
Gas - Integrated
|
-7.5%
|
1.1%
|