Insert Witty Commentary Here

Wednesday, September 12, 2007

Another headline we never should have to have heard

Mattel Pledges to Make Toys Safe

Oh good.

Ways to recoup your Warehouse club membership

I've have advocated memberships in warehouse clubs like Costco, BJ's and Sam's for years.  My theory has always been that one or a few purchases will pay for them.  I've have found this to be true when purchasing tires.  One discounted tire purchase is often the difference in membership cost.  If that isn't enough for you, check out the Sharebuilder offer for Costco members.  This fluctuates, but is usually at least a $55 credit for your first trade.  So basically they are paying you $5 to be a member.

Tuesday, August 7, 2007

Choosing Stocks

Latest Dividend Rate >= 3

Leverage Ratio <=5

Previous Day’s Closing Price >=5

Mean Recommendation >= Hold

Div. Yield 5-Year Avg >=5

EPS Growth Next 5 YR >= 4

EPS Growth Next 5 YR <= 15

This is pulling together many of the criteria we've already discussed.  Do you see a pattern yet?

Choosing Stocks


Dividend Payout Ratio Above 85% True Now

Current Dividend Yield High as Possible

Previous Day Closing Price Display

This would be the 'show me the money' strategy.  Clearly the goal of this query is to find those that pay a lot and have always done so.  There is the past performance is not a guarantee of future performance line, but other than playing the lottery or outright guessing is about all we have to go on.  In addition to these criteria I might insulate this a bit by adding:

5-Year Dividend Growth >=1

EPS Growth Next 5 Years High as Possible

Last Price Display Only

This way we are now looking for those that might continue to show you they money.

Choosing Stocks

Previous Day Closing Price >= 4

Avg. Daily Volume Last Qtr >= 50000

Next Yr Growth Rate >=4

EPS Growth Year vs Year >= 3

5-Year Dividend Growth >= 3

Current Dividend Yield >= 6

This query shows a very common question about low priced stocks.  Penny stocks can be extremely volatile, so stocks trading below thresholds are often screened out when being considered.  Nearly all the queries I've found have a different minimum bar to consider something a penny stock, but below $10 seems to be the high level average. 

This query introduces the concept of trading volumes.  Trading volume is considered to be an indication of a stocks popularity and its volatility.  Things that aren't being traded much don't have much momentum, so they are not likely to be growth related.  I'm sure there is a ratio of trading volume to outstanding shares that could be constructed to prove or disprove this assertion.   

We've seen EPS Growth, but in this query its looking for a shorter term indicator.  An interesting perspective for a dividend yield choice.