Wednesday, April 16, 2008

Google Stock Screen

I took the Google Stock Screener for a test drive. It's got a very plain, simple interface compared to that of MSN's Advanced screener, but lacks some of MSN's (excellent) functionality. One thing I do like about Google's is that there is a neat graphic showing the distribution of stocks across the various parameter settings.


I wanted to look for stocks which were showing discounts in dividend yield. I like to be getting something back from the stock while I hold for the long term so screening using yield as a filter is a good place to start.

The idea is to buy 'decent' stocks to take advantage of oversold market breath indicators when such stocks should be trading at a 'discount'. I'm not looking for the next high flyer as momentum plays tend to emerge 1-2 months after a bottom is in place and markets still appear to be feeling for that bottom. This is a scan more suited to the retirement account where capital loss tax write-offs aren't an option, so whatever you buy better be good.

Dividend Yield: Set to a min of 5%
5y EPS Growth Rate: 20% Respectable near term growth
10y EPS Growth Rate: 10% Established company with positive long term growth
Min market Cap of $500m

Twenty stocks were returned:



Filtering by bullish Point-n-Figure 'Buys' gives you:

Astrazeneca PLC (AZN), Banco Bilbao Vizcaya (BBV), Deutsche Bank AG (DB), Frontline (FRO), Permian Basin Rlty (PBT), Terra Nitrogen Co, L P (TNH), and Zenith National Insurance (ZNT).

The boat looks to have past on Permian Basin Royalty Trust (PBT) unless it makes at least a 3-box reversal. A push back to the 50-day MA would be interesting. For the financials on the list it is a matter of dollar-cost-averaging; assuming the worst is behind the sector, but allowing time for the volatility to calm as a position is built into the stock (volatility is what you need for momentum stocks, but here were looking for more conservative growth). Frontline Ltd. (FRO) has been quietly going about its business with the stock breaking from a 9-month consolidation in the $35.00-47.50 range. The question is how much is left in the tank (sorry) given it emerged from effective penny status in 2002? (Yahoo! shows lows around $4 which looks more accurate than the sub-$1 of Stockcharts.com). Terra Nitrogen Co, LP (TNH) has enjoyed a great run, but it is looking a little tired around its 200-day/40-week MA. Perhaps put it on a watchlist for now. Zenith National Insurance Corp. (ZNH) looks an excellent dollar-cost-average candidate as it works its way through a $34-50 base. Worst case would look to be a push back to $18 (2002 high) although it would have to get past 2004 highs of $30 first. With the current yield at 5.3% it is unlikely to drop far enough to allow this to happen. Good prospects.

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