Screening Results: Best Fundamentals AND Technicals

Fusion screen ltr vs fvr 20121127

This week we take a look at the candidate companies from our “fusion screen.” At Manifest Investing, we start first and foremost with the fundamentals and focus on the return forecast (PAR) and quality rating. Subscribers recognize the combination of these two primary characteristics as our Manifest Rank. For the fusion screen, we add a dab of technical analysis — seeking not only companies with the best Manifest Rank — but those that also have bullish sentiment and positive momentum. That short list of companies is shown here. (CVS Caremark was selected for the November Round Table based on these results)

The Value Line low total return forecast is shown on the left. Reinforcing opinions (based on fair value according to Morningstar and S&P) are shown on the right. The Fair Value Ratio (FVR) is the comparison of the current price to the fair value. A negative fair value RATIO indicates an opinion that the stock is undervalued. Conversely, a positive FVR suggests an overvalued opinion. Resource Connections (RECN), Molson Coors (TAP) and Intel (INTC) are the best current values according to Morningstar. S&P favors Walgreen (WAG), Masimo (MASI) and CVS Caremark (CVS). Mesa Labs (MLAB) is compelling and is not covered by any of the three research services. The return forecast shown here is the MANIFEST PAR. MLAB was one of the most compelling companies in last month’s Forbes Best Small Companies for 2013.

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