Watchlist and Research

As I had mentioned earlier, I create my watchlist from various sources:

1. MSN screening - I screen for stocks with qtr over qtr EPS growth rates of atleast 100 and revenue growth rates of atleast 30 (I keep playing with these numbers to get potential candidates). Then I also put in a criteria for price appreciation. This gives me about 100 stocks. I am already familiar with a lot of them , its the new ones that pop up once in a while. I then do further research on them. Post earnings season, new candidates keep popping up.

2. Other Sources - Daily news, other blogs, Most Price % Change list. Here are some links:
http://stage.theflyonthewall.com/entry.php
http://www.marketwatch.com/search/?doctype=806
http://finance.yahoo.com/gainers?e=us

When I find a potential candidate I will run it against my own home grown analysis system. It might sound very sophisticated, but what it does is scrap data from freely available information on the web and crunches some numbers and statistics. But it is fully automated and it takes maybe 20 sec for a stock. I provide a small but very relevant portion of that output in excel format along with my picks that I post on my blog.

Things I look at are explosive eps and revenue growth rates (highest priority), Low float, ROE, ROA, ROIC, Profit Margins, FCF/Equity, Insider Transactions, level of Debt, Cash situation, Share Buyback, small dividends maybe.

When I say freely available sources, these are mostly pages from Yahoo Finance, MSN Money and Google Finance. One very important and very visual page from MSN money even Stockbee stresses, is this one:

This one is for UVE:
http://moneycentral.msn.com/investor/invsub/results/hilite.asp?Symbol=uve

Looking at the bar graphs on the page itself gives you an idea that this one looks promising (though I do not visit this page, my software grabs data from here)

One look at this one, and you can tell, why I will avoid CHTR:
http://moneycentral.msn.com/investor/invsub/results/hilite.asp?Symbol=chtr

Hope this helps, send me emails/comments with your questions, suggestions, feedback, criticism. I appreciate it!

Cheers!
Lazy