Stock Picking Process - BigFoot Investments · As of July 28th, 2017- Subject to change. August...
Transcript of Stock Picking Process - BigFoot Investments · As of July 28th, 2017- Subject to change. August...
Stock Picking Process
Our Objective
Use proprietary screening to determine, what we consider, the Top
25 stocks .
Master ListTop 400 Stocks
Scoring Process
Final ListTOP 25 STOCKS
Popular Lists
Ultimate ListTop 100 Stocks
Analyst FavoritesCategory
Value Category
Growth Category
Sentiment Category
Second Screen
Quality Category
Screen-Based ListCurrent List
First Screen
INVESTING UNIVERSE
400
Investing Universe
10,000+ Stocks
25 Stock Stars
Ultimate List
100 Stocks
100
Master List
400 Stocks
INVESTING UNIVERSE
First ScreenThree Evaluation Lists
Current List:- Current Nominees- Personal Nominees
Screen-Based List:-Value Screen-Growth Screen-Momentum Screen
Master ListTOP 400 Stocks
Popular List:-Top 50 stocks IBD-Top 100 stocks VL-Top 36 stocks SS-Top 37 stocks MS-Top 50 stocks B
Top 50 Stocks: Investors Business Daily
• The IBD 50 is a list of 50 top-rated growth stocks in IBD’s database with top fundamentals showing strong relative price strength in the market.
• Criteria to pick stocks:– EPS Rating
– Relative Price Strength
– Return on Equity
– Management Ownership
INVESTING UNIVERSE
First ScreenThree Evaluation Lists
Current List:- Current Nominees- Personal Nominees
Screen-Based List:-Value Screen-Growth Screen-Momentum Screen
Master ListTOP 400 Stocks
Popular List:-Top 50 stocks IBD-Top 100 stocks VL-Top 36 stocks SS-Top 37 stocks MS-Top 50 stocks B
SCREEN-BASED LIST
Investment Style:VALUE Screen Tests
Investment Style:MOMENTUM Screen Tests
Growth Screen 2
Comparative & Financial
Strength
Stock Screener
Growth Screen 1
Relative Growth
Value Screen 1
Relative Value
Value Screen 2
Comparative Value & Growth
ValueScreen 3
Contrarian Opportunities
Growth Screen 3
Comparative & Sustainable
Growth
Momentum Screen 2
Moving Average & Behavioral
Momentum Screen 3
Relative Momentum
Investment Style:GROWTH Screen Tests
Momentum Screen 1Relative Strength
Stock Screener Stock Screener
Screen-Based Tests *
1. P/E Ratio <= Indy. Avg. P/E
2. Price/Sales <= Indy. Avg. P/S
3. TTM ROE > Indy. Avg. TTM ROE
4. TTM ROE > 0
5. 5 y Avg. ROE > 5 Y Indy. Avg. ROE
6. LT Debt/Equity ratio <= Indy. Avg. LT Debt Ratio
7. Price/Book <= 3
8. EPS Growth Est. > Indy. Avg. EPS Growth Est.
9. Y1 EPS Est. Growth > 0
Value Screen 2: Comparative Value
Screen Results: Value Screen 2FIELD OPERATOR COMPARE TO: STOCKS
P/E Ratio <= Indy. Avg. P/E 1780Price/Sales <= Indy. Avg. P/S 2732TTM ROE > Indy. Avg. TTM ROE 2701TTM ROE > 0 3669
5 Y Avg. ROE > 5 Y Indy. Avg. ROE 2493
LT Debt/Equity Ratio <=Indy. Avg. LT Debt/Equity
Ratio 2667Price/Book <= Average Price/Book Ratio 4556
EPS Growth Est. > Indy. Avg. EPS Growth Est. 9841Y EPS Est. Growth > 0 1117
5 COMPANIES MET THE CRITERIA: AS OF July 2017COMPANY NAME SYMBOL SECTOR
Himax Technologies, Inc. (ADR) HIMX Technology
Banco Macro SA (ADR) BMA Financial
Huaneng Power International Inc HNP Utilities
Jones Lang LaSalle Inc. JLL Services
Norsk Hydro ASA (ADR) NHYDY Basic Materials
INVESTING UNIVERSE10,000 + Stocks
Master ListTOP 400 Stocks
First Screen
Second Screen
Analyst FavoritesCategory:
1.Most Repeated Stocks
Value Category:1.Catching Up Stocks
Quality Category:1.Industry
Leaders2.Fastest Turnover
Growth Category:
1.Historical comparison2.Industry
Comparison
Sentiment Category:1.High P/E Multiples
2.Institutional Ownership
Second ScreenMaster List
Top 400 Stocks
Second Screen*
Third Screen
Ultimate List: Top 100Scoring Process:
- Growth Score- Profitability Score- Financial Health Score- Momentum Score
Stock Stars ListTOP 25 STOCKS
As of July 28th, 2017- Subject to change.
August 2017 Growth Stock PicksTOP 25 STOCKS August-17
RANK TICKER NAME SECTOR INDUSTRY
1 FB Facebook Inc 10 - Technology 1018 - Computer Services
2 BABA Alibaba Group Holding Ltd 09 - Services 0948 - Retail (Catalog & Mail Order)
3 AMZN Amazon.com, Inc. 09 - Services 0948 - Retail (Catalog & Mail Order)
4 GOOGL Alphabet Inc 10 - Technology 1018 - Computer Services
5 EW Edwards Lifesciences Corp 08 - Health Care 0812 - Medical Equipment & Supplies
6 FDX FedEx Corporation 11 - Transportation 1103 - Air Courier
7 ULTA Ulta Beauty Inc 09 - Services 0963 - Retail (Specialty Non-Apparel)
8 USCR US Concrete Inc 02 - Capital Goods 0212 - Construction - Raw Materials
9 AAPL Apple Inc. 10 - Technology 1003 - Communications Equipment
10 V Visa Inc 09 - Services 0909 - Business Services
11 DHI D.R. Horton, Inc. 02 - Capital Goods 0215 - Construction Services
12 AGN Allergan plc 08 - Health Care 0803 - Biotechnology & Drugs
13 WLK Westlake Chemical Corporation 01 - Basic Materials 0106 - Chemicals - Plastics and Rubbers
14 DAL Delta Air Lines, Inc. 11 - Transportation 1106 - Airline
15 GD General Dynamics Corporation 02 - Capital Goods 0203 - Aerospace and Defense
16 HD Home Depot Inc 09 - Services 0960 - Retail (Home Improvement)
17 GS Goldman Sachs Group Inc 07 - Financial 0718 - Investment Services
18 DIS Walt Disney Co 09 - Services 0906 - Broadcasting & Cable TV
19 CBS CBS Corporation 09 - Services 0906 - Broadcasting & Cable TV
20 DEO Diageo plc (ADR) 05 - Consumer Non-Cyclical 0503 - Beverages (Alcoholic)
21 DOW Dow Chemical Co 01 - Basic Materials 0106 - Chemicals - Plastics and Rubbers
22 C Citigroup Inc 07 - Financial 0727 - Regional Banks
23 COST Costco Wholesale Corporation 09 - Services 0963 - Retail (Specialty Non-Apparel)
24 XOM Exxon Mobil Corporation 06 - Energy 0609 - Oil & Gas Operations
25 BAC Bank of America Corp 07 - Financial 0727 - Regional Banks
August 2017 Growth Stock Picks
As of July 28th, 2017. Subject to change.
August 2017 Growth Stock Picks
As of July 28th, 2017. Subject to change.
August 2017 Growth Stock Picks
As of July 28th, 2017. Subject to change.
August 2017 Growth Stock Picks
As of July 28th, 2017. Subject to change.
August 2017 Growth Stock Picks
As of July 28th 2017. Subject to change.
✓Process is dynamic but we are not “traders”
✓Buying and selling designed to follow trends
Our Stock Selection Discipline
BigFoot Investments (a DBA of Lee Johnson Capital Management) does not promise, guarantee or imply that you will improve your operation, or increase your revenues.
As with any business, earnings potential and successful or unsuccessful use of BigFootInvestments’ products and materials will widely vary among our customers
depending on many factors, including but not limited to, the customer’s finances, knowledge and skill set, creativity, motivation, level of effort, individual expertise and
as such we do not guarantee your success or income level.
The information conveyed by BigFoot Investments, as well as the information otherwise conveyed in these materials is intended to provide you with basic instruction
regarding your business or operation. BigFoot Investments does not guarantee any results or returns based on the information you receive. Past performance or
examples of other’s performance is no indication or guarantee of your anticipated future results, and individual results may vary.
We are not responsible for any success or failure of your business if you implement the information you receive from us. We provide a tool that you can use to try to improve
the operations of your business. All information contained or received through the use of our materials is provided “as is” without warranty of any kind. We hereby disclaim all warranties with regard to the information contained in our materials
including without limitation all expenses, statutory and implied warranties of merchantability and fitness for a particular purpose.