Screening for the Best Stocks

It’s time again to take a look at stocks that are appearing most often in Investor Business Daily’s Screen of the Day. Stocks that appear most often are exhibiting superior fundamentals, technical strength and are often a part of a leading industry. To get the complete list you’ll need to be a subscriber of the newspaper and pick up an Excel add in over at www.excelsheets.com. The list below is for stocks appearing the most in the last 10 Screens of the Day. Next to each stock you’ll see the ranking from the Breakout Tracker which is part of the premium service at SelfInvestors.com. Stocks that are near a breakout get added to the watchlist and are ranked according to fundamental and technical analysis. A score of 20 is the best (however, no stock has ever received a score higher than 18 because no stock is perfect!). You may see a sample of this watchlist here. Appearing 8 times: Commercial Capital Bancorp (CCBI): Ranked 18, Broke out from base on 8/18/04 Notes: outstanding growth last couple years, accelerating recently – margins & ROE are excellent & rising – institutions rapidly initiating new positions – management owns large portion (35%) Appearing 7 times: Penn National Gaming (PENN): Ranked 16, trending up for several months, overextended Notes: very good earnings/sales growth for several years – margins & ROE good for its industry – very high debt (317%) Appearing 5 times: Aeropostale (ARO): Ranked 17, Broke out on May 24th and is up 25% since then Notes: outstanding sales/earnings growth (inconsistent in earnings) – excellent ROE, OK margins – institutions accumulating – top group Flir Systems (FLIR): Ranked 17, broke out April 12th and is up 47% since then Notes: sales/earnings growth accelerating rapidly last 4 quarters – very good margins & ROE – high debt (117%), but paying off quickly Headwaters Inc. (HDWR): Ranked 16, broke out today (August 23rd) Notes: growth has slowed a bit, but still strong – very good margins & ROE – paying off debt quickly Southwestern Energy (SWN): Ranked 16, Broke out on June 16th and is up 31% since Notes: very good earnings/sales last several quarters – very good margins & ROE – top group – institutions buying Wilshire State Bank (WSBK): Ranked 16, Broke out on August 16th and is up 10% since Notes: very good, consistent earnings/sales – margins & ROE are above industry averages – management owns large portion (51%) – # of institutions initiating a position is surging As always, do your own research before making any purchases. Most of the stocks listed above have risen past a proper buy point. Good Luck!

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