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URL:  http://boards.fool.com/nov-2-2012-picks-30363358.aspx

Subject:  Nov 2 2012 Picks Date:  11/6/2012  7:59 AM
Author:  AllTooFoolish Number:  5931 of 6021

Appologies for the late post. I am one of the many that live in the path of Hurricane Sandy. 
Power was just restored to my home a couple days ago, so I am still cacthing up on things.

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Based on the latest results as of today’s data release, no companies would qualify as a Long candidate.

Although several stocks are significantly overvalued according to the BI valuation methods, none would qualify as a short candidate either.

Market Valuation: Data suggests the market remains slightly overvalued.
Downside -22%
Upside +16%

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)


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	24-Aug-12	84.25	81	144	4%	11%	2.5	140	210	109%	FALSE	Caterpillar Inc.
JNJ	24-Aug-12	70.9	64	81	11%	6%	3.4	80	100	26%	FALSE	Johnson & Johnson
MCD	31-Aug-12	86.71	64	91	37%	11%	3.5	110	130	37%	FALSE