Sunday, October 22, 2006

Dirt Cheap Stock Picking: Chapter 1

I am a cheap b... and so I follow that philoshephy to heart. So over the years I have devised my own method to find "good" stocks (i.e., hisrorically robust earnings, growth, some recent indications of momemtum, etc.) that have gone thru some sort of correction. I admit that filters are intially all quantitative but they give me a head-start and I go from there. Here are my recent picks: CNS, CTSH, LM, BHI, SLB, VLO, RIG, and URBN.


  1. Update on performance - an equally weighted portfolio of these recommendations would have yielded 17.05% with returns ranging from 42% to -8% and only one stock yielding a loss of -8%.

  2. cpptrader1:17 AM

    adding cash heaviness as a component of your screen may also have identified a few acquisition targets - a nice way to gain a quick premium.

    inside information works for this purpose too, but with the first method you don't go to jail.