Fave Five (3/23/2018)

Fave Five (3/23/2018)

Our Fave Five essentially represents a listing of stocks with favorable short term total return forecasts (1 year, according to Analyst Consensus Estimates, or ACE) combined with strong long-term return forecasts and good/excellent quality rankings. The median 1-year ACE total return forecast is 16.2%.

Our five stocks this week hail from the top quintile (top 20%) of all stocks ranked by quality. We then sought the five highest 52-week total return forecasts according to analyst consensus.

NutriSystem (NTRI) rejoins the Fave Five tracking portfolio after a brief hiatus. NTRI was selected back on 11/9/2017 and proceeded to recede more than 20% versus the general stock market, so it was jettisoned about a month ago. With the stock price dropping from $51 to $28, we’ll give it another go — but with a careful watch on the quality rating. Slowing of sales growth with 2017 year-end resembling 2016 is causing some consternation and we’ll keep the company under the microscope with the 4/19/2018 update.

CVS Health (CVS) has appeared frequently in Fave Five results and is featured in a number of portfolios, including its #12 ranking in the MANIFEST 40 most widely-followed companies. CVS was first added to the Fave Five tracking portfolio back in December 2015 … and has been fairly disappointing with a return of (-10.1% annualized) since selection. We also note that CVS Health has been showing up on a number of Triple Play screening results, so we’ll continue to hope that earnings will advance … and that stock price will follow EPS.

The Long and Short of This Week’s Fave Five

Long & Short Term Perspectives. (March 23, 2018) Projected Annual Return (PAR): Long term return forecast based on fundamental analysis and five year time horizon. Quality Ranking: Percentile ranking of composite that includes financial strength, earnings stability and relative growth & profitability. 52-Week Position: Position on scale between 52-week low price and 52-week target price. VL Low Total Return (VLLTR): Low total return forecast based on 3-5 year price targets via Value Line Investment Survey. Morningstar P/FV: Ratio of current price to fundamentally-based fair value via www.morningstar.com S&P P/FV: Current price-to-fair value ratio via Standard & Poor’s. 1-Year ACE Outlook: Total return forecast based on analyst consensus estimates for 1-year target price combined with current yield. The data is ranked (descending order) based on this criterion. 1-Year S&P Outlook: 1-year total return forecast based on S&P 1-year price target.

Fave Five Legacy (Tracking Portfolio)

The relative/excess return for the Fave Five tracking portfolio is +4.7% since inception.

The absolute annualized rate of return is 17.8%.

Tracking Dashboard: https://www.manifestinvesting.com/dashboards/public/fave-five

Stocks, NOT Markets, For Success

Some words from Better Investing editor Don Danko and his editorial advisory team back in October 1991 …

It’s Stocks, Not Markets, That Bring Investment Success

When investors gather in Chicago later this month for NAIC’s annual Congress, it will be the 41st consecutive year that members will have come together to learn more about common stock investing.

Forty-one years. That’s quite a stretch of time. For many in the NAIC family, the members who have attended these meetings over the years represent at least two generations, in some cases even more. And those four decades of time also have involved all types of economic activity and all kinds of stock markets.

Some have been quite memorable. Like 1987 in Detroit. The Congress took place Oct. 14 -17 that year, literally on the heels of the market’s biggest plunge ever. In fact, the dive started on Friday, Oct. 16, with a collapse of more than 100 points in the Dow Jones Industrial Average while investors were attending seminars and touring the corporate exhibit area. That day they experienced the largest one-day drop in market history, a record that was not to stand very long. On Oct. 19, Black Monday, the market fell another 508 points.

Two years later, on Oct. 13, 1989 (yes, it was a Friday the 13th), the market took a huge plunge again while NAIC investors were holding their annual meeting in Minneapolis. The fall was not as severe as in 1987, but it was large enough (190 points, with most of it in the final hour of trading) to bring on the usual flurry of media reports and interviews suggesting that the sky may be falling.

Yet the surprising thing to many observers, in truth even a bit unbelievable to some, was the fact that Congress-goers didn’t seem to be too concerned about losing money or deciding when and what to sell. Yes, they had a keen interest in following what was happening in the market. And, yes, what was happening did have an effect on the value of their holdings. But the focus of most every investor we met with at both Congresses was on what and when to buy instead of what and when to sell.

What Wall Street was reporting as gloom and doom, our members were viewing as an opportunity to bargain shop.

We don’t intend to make light of bear markets. They are real and they hurt people. Some are hurt because they are forced to sell shares at low prices to meet financial needs. Others because the fear of even greater loss is more than they can handle. They didn’t expect this type of loss could happen.

Nevertheless, bear markets, even the fear of bear markets, keep investors from enjoying the benefits a program of regular investing can bring. Bear markets drive people away from equity investing. People get no enjoyment in watching the prices of stocks that they have been patiently buying, sometimes for years, fall below the price they paid. That’s not their idea of something to celebrate.

Over the past four decades, if there has been one single conclusion that we have come to, based on the experiences of thousands of Americans throughout the nation, it’s that it is important to stay in the market and continue a program of regular investing in order to build wealth. That simply is the best way that wealth is created.

To do that requires three key ingredients: 1) A focus on the long term. (Don’t be derailed by pressure to think and act short term.) 2) A discipline to apply in building and managing a portfolio. 3) Patience to persevere. (This is where clubs and other individuals who share similar goals can provide invaluable support.) It’s hard to say which ingredient is the toughest. They are all important and success depends on being able to blend all three into your own personal program of investing.

There are times when bears frolic in financial markets, and other times when the dancing is done by the bulls. But in order for most investors to build their wealth and fund their lifelong dreams, they need to dance to a different drummer.

We believe very strongly that the words to the tune that drummer is playing go like this: There is little in today’s news that has a bearing on the wealth an individual can accumulate over his or her lifetime. Money can be made in all types of markets, if the focus is long term. It’s stocks, not markets, that bring investment success.

Fave Five: 2018 GH Edition

Fave Five (2/9/2018)

Our Fave Five essentially represents a listing of stocks with favorable short term total return forecasts (1 year, according to Analyst Consensus Estimates, or ACE) combined with strong long-term return forecasts and good/excellent quality rankings. The median 1-year ACE total return forecast is 14.7%.

By the way, the ferocity of the correction is on full display here, the median 1-year ACE total return was 1.7% just a couple of weeks ago. That reality, the bolstering fundamentals and a relative strength index that is creeping into “oversold territory” are among the reasons that diligent shopping can be pursued.

This week’s Fave Five will be a parade of several of our favorite screens, including the traditional long/short outlook, best in zone, launchpad ready, Triple Play qualified, etc.

Traditional Fave Five: NutriSystems (NTRI)
Best In Zone “Irish Spring”: Prestige Brands (PBH)
Launchpad Worthy?: IMAX (IMAX)
Triple Play Qualifiers: CVS Health (CVS)
Heavy Hogs (2018): ULTA Beauty (ULTA)

The Long and Short of This Week’s Fave Five

Long & Short Term Perspectives. (February 9, 2018) Projected Annual Return (PAR): Long term return forecast based on fundamental analysis and five year time horizon. Quality Ranking: Percentile ranking of composite that includes financial strength, earnings stability and relative growth & profitability. 52-Week Position: Position on scale between 52-week low price and 52-week target price. VL Low Total Return (VLLTR): Low total return forecast based on 3-5 year price targets via Value Line Investment Survey. Morningstar P/FV: Ratio of current price to fundamentally-based fair value via www.morningstar.com S&P P/FV: Current price-to-fair value ratio via Standard & Poor’s. 1-Year ACE Outlook: Total return forecast based on analyst consensus estimates for 1-year target price combined with current yield. The data is ranked (descending order) based on this criterion. 1-Year S&P Outlook: 1-year total return forecast based on S&P 1-year price target.

Best in Zone — “Irish Spring”

Long & Short Term Perspectives. (February 9, 2018) Projected Annual Return (PAR): Long term return forecast based on fundamental analysis and five year time horizon. Quality Ranking: Percentile ranking of composite that includes financial strength, earnings stability and relative growth & profitability. 52-Week Position: Position on scale between 52-week low price and 52-week target price. VL Low Total Return (VLLTR): Low total return forecast based on 3-5 year price targets via Value Line Investment Survey. Morningstar P/FV: Ratio of current price to fundamentally-based fair value via www.morningstar.com S&P P/FV: Current price-to-fair value ratio via Standard & Poor’s. 1-Year ACE Outlook: Total return forecast based on analyst consensus estimates for 1-year target price combined with current yield. The data is ranked (descending order) based on this criterion. 1-Year S&P Outlook: 1-year total return forecast based on S&P 1-year price target.

Launchpad Candidates

Reminder: These are companies exhibiting HUGE 2018 EPS forecasts versus 2017 projected/actual results. This is just a one year condition for this screen. Ideally, a stock with multi-year breakthrough and breakout potential could be discovered. Stocks exhibiting these characteristics have delivering participating clubs and individuals to the Groundhog Winner’s Circle in the past.

Triple Play Qualifiers

This group has decent (out-sized) long term return expectations in combination with the potential for P/E expansion and profitability/margin enhancement.

Heavy Hogs (2018)

These are the consensus selections — the most commonly selected stocks — among the Groundhog Challenge entries for 2018.

Fave Five Legacy (Tracking Portfolio)

The relative/excess return for the Fave Five tracking portfolio is +4.8% since inception.

The absolute annualized rate of return is 18.1%.

Tracking Dashboard: https://www.manifestinvesting.com/dashboards/public/fave-five

The Rest of the Story: Wasted Wish?

Perspectives, by Mark Robertson, Managing Partner


Originally Posted on January 1st, 2010 — we felt it was worth another look back at a visit from Santa … from a few years ago on the heels of a vicious bear market.

With certain apologies to Paul Harvey, we need to continue a look at our “Best Season To Invest?” theme from last month. Our December cover story included an exchange with Santa Claus where we playfully negotiated three wishes. The 3rd wish was for Santa to let us know the best day to invest during any given year.

Santa reluctantly agreed to see what he could do … after exploring our comments about lottery-related spam email. But his message was pretty clear, the perceived advantage isn’t nearly what most people think it would be.

We resumed the discussion where we left off during his visit to Rochester Hills, Michigan on a snowy December 25.

 

A Wish Already Granted? $100 invested into Tin Cup (our model portfolio) would have led to total assets of $1565 over the last ten years. The same $1000 invested on the best day for investing in each of those ten years stands at $1317. Investing regularly in quality companies with leadership projected returns turns out to be pretty compelling.

 

MI: So how’d it go in Omaha?

Santa: I’m still undecided. Buffett is on probation until I figure out why he said “Buy American!” and then bought a Chinese stock? But he gets good list points for pointing out long-term investing in general.

MI: Indeed. We think Buffett, and for that matter, all of us, should be willing to invest wherever your sled flies on Christmas Eve.

Santa: I might be mixed up on the years … but in any event, he’s on probation until I finish reading Snowball. If he’s gonna use one of my favorites for the title of the book, he’d better behave. I’m not convinced. For now, it’s a fly-by.

MI: Charlie Munger, too?

Santa: Not a chance. Charlie’s a hoot, one of my favorites. I may leave him a clump of coal just to play mind games with him. He’ll probably wonder if Buffett is out to buy an entire coal company next.

MI: Now who’s misbehaving?

Santa: Watch it. That 2010 list is already a work-in-progress. You’re already hanging in the balance.

MI: OK, I’ll add “being nice” to my list of resolutions for 2010.

Santa: It’s early. You have a shot.

MI: We’ve been doing some more thinking about that wasted third wish from last month. Is it possible that I wished for something less than we already have?

Santa: Ding. Ding. And two more angels get their wings. Your subscribers have already checked in with their own observations that Tin Cup gained 48% during 2009?

MI: Right. We’re thrilled!

Santa: Well … investing $100/year in Tin Cup and not worrying about “best day of the year” achieved $1565 over the last ten years vs. $1317 using the “best day” approach. Celebrate that. Hey! Nice touch on the beverage, chips and salsa … milk and cookies are great, but they get old after a few million stops.

MI: Thanks, Santa. Have a great year!

Fave Five (12/8/2017)

Fave Five (12/8/2017)

Our Fave Five essentially represents a listing of stocks with favorable short term total return forecasts (1 year, according to Analyst Consensus Estimates, or ACE) combined with strong long-term return forecasts and good/excellent quality rankings. The median 1-year ACE total return forecast is 6.1%.

This week we return to the triple play screening method for our five favorites. The triple play possibility occurs when you find a stock that is very depressed in price and also appears to be on the verge of substantially boosting its profit margins. The triple play effect is possible in that:

(1) The depressed price of the stock can return to normal levels;

(2) increased profit margins can produce increased EPS and a higher price;

(3) may also cause higher P/E ratios, or P/E expansion.

Chugging Through 6000 Stocks in the Value Line “Universe”

Our playing field this week was limited to the stocks that qualified for our December Sweet 16 feature — discovered by applying the Triple Play criteria to the ~6000 stocks in the Value Line Investment Analyzer.

The Long and Short of This Week’s Fave Five

Long & Short Term Perspectives. (December 8, 2017) Projected Annual Return (PAR): Long term return forecast based on fundamental analysis and five year time horizon. Quality Ranking: Percentile ranking of composite that includes financial strength, earnings stability and relative growth & profitability. 52-Week Position: Position on scale between 52-week low price and 52-week target price. VL Low Total Return (VLLTR): Low total return forecast based on 3-5 year price targets via Value Line Investment Survey. Morningstar P/FV: Ratio of current price to fundamentally-based fair value via www.morningstar.com S&P P/FV: Current price-to-fair value ratio via Standard & Poor’s. 1-Year ACE Outlook: Total return forecast based on analyst consensus estimates for 1-year target price combined with current yield. The data is ranked (descending order) based on this criterion. 1-Year S&P Outlook: 1-year total return forecast based on S&P 1-year price target.

Fave Five Legacy (Tracking Portfolio)

The relative/excess return for the Fave Five tracking portfolio is +5.7% since inception.

The absolute annualized rate of return is 22.6%.

Tracking Dashboard: https://www.manifestinvesting.com/dashboards/public/fave-five

Fave Five: Triple Play (11/17/2017)

Fave Five (11/17/2017)

Our Fave Five essentially represents a listing of stocks with favorable short term total return forecasts (1 year, according to Analyst Consensus Estimates, or ACE) combined with strong long-term return forecasts and good/excellent quality rankings. The median 1-year ACE total return forecast is 7.2%.

This week we return to the triple play screening method for our five favorites. The triple play possibility occurs when you find a stock that is very depressed in price and also appears to be on the verge of substantially boosting its profit margins. The triple play effect is possible in that:

(1) The depressed price of the stock can return to normal levels;

(2) increased profit margins can produce increased EPS and a higher price;

(3) may also cause higher P/E ratios, or P/E expansion.

Schlossing About

We continue to leave the 52-week “position”, a factor that combines with 1-year total return for the short term outlook. Walter Schloss loved to find vetted high-quality companies with solid expectations that were trading near the low end of a 52-week range.

This week’s short list has all the usual attributes over the long term, the next year (or short term) and also is expected to grow at double-digit rates, precisely the type of treat that we seek to discover going into the holiday season this year.

The Long and Short of This Week’s Fave Five

Long & Short Term Perspectives. (November 17, 2017) Projected Annual Return (PAR): Long term return forecast based on fundamental analysis and five year time horizon. Quality Ranking: Percentile ranking of composite that includes financial strength, earnings stability and relative growth & profitability. 52-Week Position: Position on scale between 52-week low price and 52-week target price. VL Low Total Return (VLLTR): Low total return forecast based on 3-5 year price targets via Value Line Investment Survey. Morningstar P/FV: Ratio of current price to fundamentally-based fair value via www.morningstar.com S&P P/FV: Current price-to-fair value ratio via Standard & Poor’s. 1-Year ACE Outlook: Total return forecast based on analyst consensus estimates for 1-year target price combined with current yield. The data is ranked (descending order) based on this criterion. 1-Year S&P Outlook: 1-year total return forecast based on S&P 1-year price target.

Fave Five Legacy (Tracking Portfolio)

The relative/excess return for the Fave Five tracking portfolio is +5.3% since inception.

The absolute annualized rate of return is 20.6%.

Tracking Dashboard: https://www.manifestinvesting.com/dashboards/public/fave-five

Let Me Save You Some Time – Josh Brown

Photo: http://www.detroitmovestheworld.com

This Week at MANIFEST (11/17/2017)

“9. Don’t Rush. You don’t need to already know what you’re gonna do with the rest of your life. Don’t panic. You will soon be dead. Life will sometimes seem long and tough and, God, it’s tiring. You will sometimes be happy and sometimes sad, and then you’ll be old and then you’ll be dead. There is only one sensible thing to do with this empty existence, and that is fill it. Life is best filled by learning as much as you can about as much as you can, taking pride in whatever you’re doing, having compassion, sharing ideas, running, being enthusiastic, and then there’s love and travel and wine and sex and art and kids and giving and mountain-climbing. But you know all that stuff already. It’s an incredibly exciting thing, this one meaningless life of yours. Good luck and thank you for indulging me.” — Tim Minchin (Nine Life Lessons)

Let Me Save You Some Time

Those of you who catch some CNBC during the day probably recognize Josh Brown as one of the mainstays on the Halftime Report. From his books, Backstage Wall Street and the co-author stint via Clash of the Financial Pundits (with Jeff Macke) it’s clear that he and his colleagues see some of the same perspectives that we do. We’ve covered those complementary notions before here: Reformation: Center Stage.

It was refreshing spending a few moments in Detroit this past Thursday and Friday. That may seem strange to some of you but the city is truly engaged in a renaissance. The image above (and link provided) is part of Detroit’s compelling invitation to locate a second HQ here. I’m told that Detroit will likely make the “short list” as this continues to develop.

Detroit moves the world. We also know Detroit as the origins of the modern investment club movement — as championed by George Nicholson. As the first snow fell, it was refreshing to reflect on the dreams, aspirations and gifts bestowed by Nicholson and the community he nurtured. I took a moment to stop by the historic Rackham Building, the birthplace of the National Association of Investors (1951) and a movement that has favorably influenced the lives and investing experiences of so many of us. Nicholson was also a founding influence behind the Financial Analysts Society of Detroit and was a regular attendee … and routinely tendered the first question of the Q&A segment by asking the presenter to share their thoughts on “their greatest challenge.”

I assumed my seat at lunch on Friday next to a friend that I hadn’t met (yet). After brief introductions and observations about snow, I asked, “Did you know George Nicholson?” He smiled. “As a matter of fact, I spent last night with a couple of the Nicholson boys.” Wow. It turned out that his father had been influential in a few of Nicholson’s enterprises going back to the 1950s and 1960s and beyond. It’s a small world. It’s a Better World because of Nicholson’s contributions to the world of investing.

The theme of a better investing world resonates in Josh Brown’s perspective, too. Jason Raznick of Benzinga.com had arranged a town hall meeting format with Josh on Thursday night. If you’re not familiar with Benzinga, Jason has created a Bloomberg-like entity for investors and traders in Detroit that has become quite formidable. Thursday night turned out to actually be a better opportunity to compare notes and spend time with Josh as he shared observations about a number of things.

  • Caveat emptor. He shared that (1) He’d been dismissed (sent home) not once, but twice from summer camp as a child. (2) He knows the Wolf of Wall Street and spent some time in similar trenches. (3) He’s been part of a couple of crash-and-burn initiatives.
  • That last one is actually a virtuous attribute. He’s been there and done that. He considers his evolution from stockbroker to registered investment advisor to be among the best decisions of his life.
  • Incentives Matter. Incentives, good and bad. They both affect performance and behavior in the markets. Incentives matter. Often they dictate the probability of potential outcomes in very foreseeable ways.
  • Josh loves Taco Bell.

  • Regulation FD Killed Most of the Rhinos Returns. So there. He said it. “Besides the growth in the number of funds, something else changed in the hedge fund space. Regulation Fair Disclosure (Reg FD) came into effect in 2000. This SEC-mandated rule forced all publicly traded companies to disclose material information to all investors at the same time. Prior to this, hedge funds had a huge advantage in terms of the information they could obtain prior to other investors. Reg FD changed that. This, combined with the large number of funds chasing similar securities and using similar strategies, has resulted in much lower performance for investors.” — Ben Carlson

Speaking of Ben Carlson, he attended the session on Friday. Hopefully we’ll get a chance to spend more time with Ben, too. Regular readers will recognize that his articles are frequently cited in our Results, Remarks & References section. Here’s a couple of Josh’s slides from Friday, including the famous (infamous?) CNBC Decabox:

Of Dragons and Debate: Active vs. Passive

“I’m so sick of the active vs. passive debate.” “The real debate is likely high cost vs. low cost … or faith-based versus systematic.” The librarians of the investing world are always stuffing things into boxes and categories. Some fodder for the dragons:

  • “The S&P 500 Index Funds Are Not 100% Passive.” Ben Carlson has referred to the S&P 500 as the World’s Largest Momentum Strategy The S&P 500 is constantly re-balancing and the cap-weighting emphasizes Apple, Microsoft, FaceBook, Amazon and Johnson & Johnson. S&P 500 (VFINX) routinely has a 4-5% turnover as companies come and go. That’s not passive.
  • (Mark here) I’d take it a step further and remind investors a la Ralph Acampora from a Detroit stage in 2001 that lost decades happen. That’s right. He told the audience to pick stocks or different funds, because the S&P 500 was about to get “killed.” Ralph was right.
  • Sometimes a fund isn’t passive at all but is classified as a “passive ETF.” Josh cited a WisdomTree fund that is hedging European baskets vs. Japan and currencies in both directions for both geographies. “That may be 6-dimensional CandyLand, but it’s NOT passive.”

And finally, we know that some of our sleep-at-night active investing would be deemed quite “passive” but on closer examination, they’re NOT. Anything but. We buy. We hold … for as long as it makes sense to do so. In the case of our Bare Naked Million Portfolio there have been less than ten sell transactions since Christmas 2005. The turnover is less than these large “passive” index funds. And by the way, that bare naked $1,000,000 is now worth $3,177,277 (11/10/2017) — a “passive” annualized total return of 11.2% vs. 7.3% for the “actively” managed WIlshire 5000 (VTSMX) over the same time frame.

Thanks for the refreshing perspectives, Josh.

MANIFEST 40 Updates

Round Table Stocks

  • Illumina (ILMN)
  • ResMed (RMD)

Best Small Companies (2018)

Round Table Sessions (Video Archives)

Results, Remarks & References

Companies of Interest: Value Line (11/17/2017)

The average Value Line low total return forecast for the companies in this week’s update batch is 1.2% vs. 2.9% for the Value Line 1700 ($VLE).

Materially Stronger: Insulet (PODD), Deere (DE), KLA-Tencor (KLAC), Wabash National (WNC), Xcerra (XCRA), AGCO (AGCO), Thermo Fisher (TMO), Bard, C.R. (BCR), Teleflex (TFX), Intuitive Surgical (ISRG), Cutera (CUTR)

Materially Weaker: Geospace Technologies (GEOS), SCANA (SCG), Bio-Rad Labs (BIO)

Discontinued: Digital Globe (DGI), Select Comfort (SCSS), WebMD (WBMD), UCP (UCP), VCA (WOOF), Female Health (FHCO), Enpro Resources (ERS), Atwood Oceanics (ATW), MOCON (MOCO), Applied Microcircuits (AMCC), Allied World (AWH), Entercom (ETM), Alere (ALR), Landauer (LDR)

Market Barometers

Value Line Low Total Return (VLLTR) Forecast. The long-term low total return forecast for the 1700 companies featured in the Value Line Investment Survey is 2.9%, decreasing from 3.3% last week. For context, this indicator has ranged from low single digits (when stocks are generally overvalued) to approximately 20% when stocks are in the teeth of bear markets like 2008-2009.

Update Batch: Stocks to Study (11/17/2017)

The average return forecast (PAR) for this week’s update batch is 5.7%.

Long & Short Term Perspectives. (November 17, 2017) Projected Annual Return (PAR): Long term return forecast based on fundamental analysis and five year time horizon. Quality Ranking: Percentile ranking of composite that includes financial strength, earnings stability and relative growth & profitability. VL Low Total Return (VLLTR): Low total return forecast based on 3-5 year price targets via Value Line Investment Survey. Morningstar P/FV: Ratio of current price to fundamentally-based fair value via www.morningstar.com S&P P/FV: Current price-to-fair value ratio via Standard & Poor’s. 1-Year ACE Outlook: Total return forecast based on analyst consensus estimates for 1-year target price combined with current yield. 1-Year S&P Outlook: 1-year total return forecast based on S&P 1-year price target.

 

November Round Table November 21, 2017 at 8:30 PM ET ONLINE

Stocks Likely To Be Featured: TBD

This Round Table will continue the discussion on traditional selling analysis and explore relative return-based selling triggers. We will probably also spend a few minutes with stock selections that we’re thankful for …

Consider joining Ken Kavula, Cy Lynch, Hugh McManus and Mark Robertson as they share their current favorite stock study ideas.

Registration: https://attendee.gotowebinar.com/register/4510335622157941250

Discovery Club

“Dump your hedge funds and explore their small-cap stock picks.”

Small cap is not necessarily small (faster-growing) companies but in general, we like the idea of a nice blend. So yes, we’re interested in hunting down some actionable ideas among the most successful investors on our radar screen — seeking companies that aren’t on too many radar screens, yet. The discovery of smaller, promising and faster-growing companies has always been one of our favorite (and rewarding) activities. In that spirit, we’re expanding our efforts in this realm, seeking smaller, less discovered companies and add them to our coverage. We will continue to scour our Best Small Company Funds with leaders like Brown Small Company.

This Week’s Sources and Suggestions

  • American Association of Individual Investors & James O’Shaughnessy

Coverage Initiated/Restored: Amtech Systems (ASYS), QuinStreet (QNST), Valhi (VHI)