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URL:  http://boards.fool.com/jun-29-picks-30126307.aspx

Subject:  Jun 29 Picks Date:  7/1/2012  9:21 AM
Author:  AllTooFoolish Number:  5926 of 6021

I am using the following TTD rules for Long position considerations:
1. Year-over-Year EPS growth must > 10%, which is the next 4Q / current quarter + previous 3 quarters earnings results
2. VL 3-5 Year price appreciation > average price appreciation of the market
3. When calculating ROE and BV figures, ignore years when are negative, but must have at least 7+ years of data to be 
   included in final consideration
4. Avoid erratic ROE ratios, that is where they are > 2std deviations = Curr ROE > (10 Year Avg + 2 * Std Dev)

Based on these rules, the top three undervalued stocks are:
HPQ
JPM
CSCO
However, only HPQ would qualify as a TTD pick.

The top three most overvalued stocks are:
BA
VZ
PFE
None of these would qualify as a potential short position.

Market Valuation: 
Downside: -17%
Upside:   +22%


Summary of Results												
											
	VL	        Current	Down	Up	%<10Y	EPS	Div    3-5Y L 3-5Y H VL 3-5Y   ROE	
Ticker	Date	        Price	Price	Price	Down	Delta   Yield   VL $	VL $	% Chg	<2STD	Name
CAT	25-May-12	 84.96 	90.63	160	-6%	20%	2.5	145	215	111%	FALSE	Caterpillar Inc.
JNJ	25-May-12	 66.63 	55.29	70.19	21%	3%	3.7	80	100	35%	TRUE	Johnson & Johnson
MCD	1-Jun-12	 88.35 	75.30	107	17%	9%	3.2	110	130	36%	FALSE