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Author: TMFGebinr Big gold star, 5000 posts Top Recommended Fools Old School Fool Supernova Phoenix 1
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Subject: Latest screen results Date: 5/19/2011 8:50 AM
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Hi everyone,

Ran my screen again a couple of days ago as we wind down this earnings season. Was looking for companies with at least $100 million in TTM FCF and whose price was below a 5% / 2.5% / 0% (15% discount) predicted price. Doesn't include financial companies of any type. Then I ran the predictor to see what expectations were priced in. These are using prices from Monday close. I'll be looking more closely at several of these over the next few weeks.

Cheers,
Jim


Last 5 / 2.5 / 0 DCF modeled years
Company Industry TTM FCF # sh price Pred price 1-5 5-10 Term

National CineMedia, Inc. (NasdaqGS:NCMI) Advertising $126 53.8 $16.36 $19.88 1.0% 0.5% 0.0%
L-3 Communications Holdings Inc. (NYSE:LLL) Aerospace and Defense $1,220 107.4 $84.29 $96.51 2.2% 1.1% 0.0%
Textron Inc. (NYSE:TXT) Aerospace and Defense $816 276.5 $24.30 $25.06 4.4% 2.2% 0.0%
Alaska Air Group, Inc. (NYSE:ALK) Airlines $312 35.9 $68.29 $73.82 3.4% 1.7% 0.0%
Delta Air Lines Inc. (NYSE:DAL) Airlines $1,300 845.3 $11.00 $13.06 1.5% 0.7% 0.0%

Southwest Airlines Co. (NYSE:LUV) Airlines $1,742 748.0 $12.14 $19.78 -5.2% -2.6% 0.0%
Vonage Holdings Corporation (NYSE:VG) Alternative Carriers $143 223.2 $4.60 $5.46 1.5% 0.7% 0.0%
Noranda Aluminum Holding Corp. (NYSE:NOR) Aluminum $130 66.8 $14.07 $16.47 1.8% 0.9% 0.0%
Collective Brands, Inc. (NYSE:PSS) Apparel Retail $174 61.5 $19.45 $24.03 0.6% 0.3% 0.0%
Quiksilver Inc. (NYSE:ZQK) Apparel, Accessories and Luxury Good $131 162.0 $4.57 $6.84 -3.4% -1.7% 0.0%

Ford Motor Co. (NYSE:F) Automobile Manufacturers $7,338 3798.2 $15.13 $16.41 3.3% 1.7% 0.0%
PDL BioPharma, Inc. (NasdaqGS:PDLI) Biotechnology $144 139.6 $6.39 $8.77 -1.6% -0.8% 0.0%
Belo Corp. (NYSE:BLC) Broadcasting $108 103.6 $7.25 $8.85 0.9% 0.4% 0.0%
Sinclair Broadcast Group Inc. (NasdaqGS:SBGI) Broadcasting $157 80.9 $9.90 $16.53 -5.7% -2.8% 0.0%
Ameristar Casinos Inc. (NasdaqGS:ASCA) Casinos and Gaming $174 58.4 $22.78 $25.29 2.8% 1.4% 0.0%

Scientific Games Corporation (NasdaqGS:SGMS) Casinos and Gaming $110 92.0 $9.91 $10.13 4.5% 2.3% 0.0%
Cloud Peak Energy Inc. (NYSE:CLD) Coal and Consumable Fuels $184 60.0 $20.07 $26.05 -0.4% -0.2% 0.0%
Deluxe Corp. (NYSE:DLX) Commercial Printing $178 51.4 $26.89 $29.48 3.1% 1.6% 0.0%
Blue Coat Systems Inc. (NasdaqGS:BCSI) Communications Equipment $125 43.5 $23.95 $24.50 4.5% 2.3% 0.0%
Comtech Telecommunications Corp. (NasdaqGS:CMTL) Communications Equipment $133 26.8 $28.07 $42.18 -3.5% -1.7% 0.0%

Lexmark International Inc. (NYSE:LXK) Computer Storage and Peripherals $305 79.1 $30.01 $32.76 3.2% 1.6% 0.0%
SanDisk Corp. (NasdaqGS:SNDK) Computer Storage and Peripherals $1,395 238.3 $47.95 $49.73 4.3% 2.1% 0.0%
KBR, Inc. (NYSE:KBR) Construction and Engineering $701 151.5 $35.77 $39.30 3.1% 1.5% 0.0%
URS Corporation (NYSE:URS) Construction and Engineering $656 78.7 $44.20 $70.76 -4.8% -2.4% 0.0%
Navistar International Corp. (NYSE:NAV) Construction and Farm Machinery and $660 72.3 $67.51 $77.53 2.1% 1.1% 0.0%

Alliance Data Systems Corporation (NYSE:ADS) Data Processing and Outsourced Servi $835 51.4 $91.64 $137.84 -3.5% -1.7% 0.0%
Computer Sciences Corporation (NYSE:CSC) Data Processing and Outsourced Servi $1,386 154.7 $44.05 $76.12 -6.4% -3.2% 0.0%
DST Systems Inc. (NYSE:DST) Data Processing and Outsourced Servi $378 46.5 $47.05 $69.06 -3.0% -1.5% 0.0%
Global Payments Inc. (NYSE:GPN) Data Processing and Outsourced Servi $836 80.1 $52.14 $88.72 -6.1% -3.0% 0.0%
Lender Processing Services, Inc. (NYSE:LPS) Data Processing and Outsourced Servi $425 86.3 $28.99 $41.77 -2.6% -1.3% 0.0%

Dillard's Inc. (NYSE:DDS) Department Stores $385 53.9 $55.13 $60.67 3.0% 1.5% 0.0%
Apollo Group Inc. (NasdaqGS:APOL) Education Services $913 141.6 $41.71 $54.75 -0.6% -0.3% 0.0%
Bridgepoint Education, Inc. (NYSE:BPI) Education Services $189 52.7 $20.51 $30.41 -3.2% -1.6% 0.0%
Power-One Inc. (NasdaqGM:PWER) Electronic Components $168 103.6 $8.80 $13.81 -4.4% -2.2% 0.0%
Vishay Intertechnology Inc. (NYSE:VSH) Electronic Components $429 165.5 $17.09 $22.02 -0.2% -0.1% 0.0%

CF Industries Holdings, Inc. (NYSE:CF) Fertilizers and Agricultural Chemica $1,534 71.4 $134.96 $182.45 -1.2% -0.6% 0.0%
Safeway Inc. (NYSE:SWY) Food Retail $1,202 366.0 $24.98 $27.89 2.7% 1.4% 0.0%
Laclede Group Inc. (NYSE:LG) Gas Utilities $115 22.4 $37.71 $43.67 2.0% 1.0% 0.0%
Questar Corporation (NYSE:STR) Gas Utilities $354 177.5 $16.90 $16.95 4.9% 2.5% 0.0%
WGL Holdings Inc. (NYSE:WGL) Gas Utilities $249 51.2 $38.82 $41.39 3.7% 1.8% 0.0%

Amedisys Inc. (NasdaqGS:AMED) Healthcare Services $117 29.4 $32.31 $33.81 4.1% 2.0% 0.0%
Gentiva Health Services Inc. (NasdaqGS:GTIV) Healthcare Services $113 30.5 $24.86 $31.54 0.1% 0.0% 0.0%
Take-Two Interactive Software Inc. (NasdaqGS:TTWOHome Entertainment Software $187 84.6 $15.87 $18.74 1.6% 0.8% 0.0%
American Greetings Corp. (NYSE:AM) Housewares and Specialties $143 40.4 $23.28 $30.15 -0.3% -0.2% 0.0%
NRG Energy, Inc. (NYSE:NRG) Independent Power Producers and Ener $985 247.3 $24.69 $33.83 -1.5% -0.8% 0.0%

General Electric Co. (NYSE:GE) Industrial Conglomerates $25,032 10605.4 $19.76 $20.05 4.7% 2.4% 0.0%
Cincinnati Bell Inc. (NYSE:CBB) Integrated Telecommunication Service $119 198.8 $3.13 $5.10 -5.2% -2.6% 0.0%
Verizon Communications Inc. (NYSE:VZ) Integrated Telecommunication Service $13,916 2829.1 $36.97 $41.78 2.5% 1.2% 0.0%
AOL, Inc. (NYSE:AOL) Internet Software and Services $332 106.9 $18.76 $26.40 -2.1% -1.0% 0.0%
EarthLink Inc. (NasdaqGS:ELNK) Internet Software and Services $138 107.0 $7.82 $10.95 -2.0% -1.0% 0.0%

CACI International Inc. (NYSE:CACI) IT Consulting and Other Services $222 30.2 $61.71 $62.49 4.7% 2.4% 0.0%
AMERIGROUP Corporation (NYSE:AGP) Managed Healthcare $458 48.3 $67.91 $80.65 1.5% 0.7% 0.0%
Humana Inc. (NYSE:HUM) Managed Healthcare $2,029 168.4 $78.54 $102.33 -0.5% -0.2% 0.0%
Magellan Health Services Inc. (NasdaqGS:MGLN) Managed Healthcare $232 32.0 $51.33 $59.54 1.9% 1.0% 0.0%
Molina Healthcare Inc. (NYSE:MOH) Managed Healthcare $214 30.6 $40.51 $59.61 -3.0% -1.5% 0.0%

Universal American Corp (NYSE:UAM) Managed Healthcare $105 75.8 $9.44 $11.72 0.5% 0.3% 0.0%
WellCare Health Plans, Inc. (NYSE:WCG) Managed Healthcare $318 41.8 $50.80 $64.53 0.1% 0.0% 0.0%
Ameren Corporation (NYSE:AEE) Multi-Utilities $962 241.1 $29.91 $33.89 2.4% 1.2% 0.0%
Xerox Corp. (NYSE:XRX) Office Electronics $1,946 1401.2 $10.17 $11.80 1.9% 1.0% 0.0%
Pitney Bowes Inc. (NYSE:PBI) Office Services and Supplies $821 203.8 $24.54 $34.22 -1.9% -0.9% 0.0%

Global Geophysical Services, Inc. (NYSE:GGS) Oil and Gas Equipment and Services $101 36.4 $15.40 $23.65 -3.9% -2.0% 0.0%
Helix Energy Solutions Group, Inc. (NYSE:HLX) Oil and Gas Equipment and Services $225 106.0 $15.49 $18.05 1.9% 0.9% 0.0%
Delek US Holdings Inc. (NYSE:DK) Oil and Gas Refining and Marketing $111 54.5 $14.49 $17.33 1.3% 0.7% 0.0%
Valero Energy Corp. (NYSE:VLO) Oil and Gas Refining and Marketing $2,335 570.0 $26.23 $34.79 -0.8% -0.4% 0.0%
Western Refining Inc. (NYSE:WNR) Oil and Gas Refining and Marketing $191 89.1 $15.33 $18.21 1.5% 0.7% 0.0%

Graphic Packaging Holding Company (NYSE:GPK) Paper Packaging $228 343.7 $5.38 $5.63 4.1% 2.0% 0.0%
Buckeye Technologies Inc. (NYSE:BKI) Paper Products $136 39.9 $25.30 $28.99 2.2% 1.1% 0.0%
PH Glatfelter Co. (NYSE:GLT) Paper Products $137 46.0 $14.70 $25.24 -6.3% -3.1% 0.0%
Eli Lilly & Co. (NYSE:LLY) Pharmaceuticals $6,404 1112.0 $39.15 $48.91 0.4% 0.2% 0.0%
Par Pharmaceutical Companies Inc. (NYSE:PRX) Pharmaceuticals $157 35.6 $34.74 $37.35 3.5% 1.8% 0.0%

ViroPharma Inc. (NasdaqGS:VPHM) Pharmaceuticals $190 76.0 $18.62 $21.21 2.3% 1.2% 0.0%
Warner Chilcott plc (NasdaqGS:WCRX) Pharmaceuticals $882 253.8 $24.97 $29.53 1.5% 0.8% 0.0%
Gannett Co., Inc. (NYSE:GCI) Publishing $632 240.4 $14.40 $22.32 -4.1% -2.1% 0.0%
John Wiley & Sons Inc. (NYSE:JW.A) Publishing $408 60.8 $50.81 $57.00 2.6% 1.3% 0.0%
DineEquity, Inc. (NYSE:DIN) Restaurants $180 18.5 $53.90 $82.30 -3.8% -1.9% 0.0%

GT Solar International, Inc. (NasdaqGS:SOLR) Semiconductor Equipment $230 124.9 $11.80 $15.65 -0.8% -0.4% 0.0%
Kulicke & Soffa Industries Inc. (NasdaqGM:KLIC) Semiconductor Equipment $138 71.5 $11.98 $16.44 -1.6% -0.8% 0.0%
Lam Research Corporation (NasdaqGS:LRCX) Semiconductor Equipment $743 124.0 $47.14 $50.90 3.4% 1.7% 0.0%
MKS Instruments Inc. (NasdaqGS:MKSI) Semiconductor Equipment $159 52.2 $25.71 $25.80 4.9% 2.5% 0.0%
Teradyne Inc. (NYSE:TER) Semiconductor Equipment $480 185.3 $15.80 $22.06 -1.9% -1.0% 0.0%

Marvell Technology Group Ltd. (NasdaqGS:MRVL) Semiconductors $1,103 659.4 $14.19 $14.21 5.0% 2.5% 0.0%
Micron Technology Inc. (NasdaqGS:MU) Semiconductors $1,857 1000.9 $10.55 $15.76 -3.3% -1.7% 0.0%
Dr Pepper Snapple Group, Inc. (NYSE:DPS) Soft Drinks $1,354 221.3 $41.86 $51.95 0.5% 0.3% 0.0%
Regis Corp. (NYSE:RGS) Specialized Consumer Services $133 56.5 $15.68 $19.96 0.0% 0.0% 0.0%
Beacon Roofing Supply Inc. (NasdaqGS:BECN) Trading Companies and Distributors $107 45.9 $19.68 $19.82 4.9% 2.4% 0.0%

United Rentals, Inc. (NYSE:URI) Trading Companies and Distributors $189 61.3 $25.95 $26.19 4.8% 2.4% 0.0%
Hertz Global Holdings, Inc. (NYSE:HTZ) Trucking $1,317 415.8 $15.99 $26.90 -5.8% -2.9% 0.0%
Sprint Nextel Corp. (NYSE:S) Wireless Telecommunication Services $2,538 2991.0 $5.11 $7.21 -2.1% -1.1% 0.0%
Telephone & Data Systems Inc. (NYSE:TDS) Wireless Telecommunication Services $437 103.6 $34.33 $35.84 4.1% 2.1% 0.0%
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Author: TMFGebinr Big gold star, 5000 posts Top Recommended Fools Old School Fool Supernova Phoenix 1
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Subject: Re: Latest screen results Date: 5/19/2011 11:53 AM
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So a few of these caught my eye:

Southwest Airlines (SA pick)
Cloud Peak Energy
Alliance Data Systems
Global Payments
Bridgepoint Education (TMF holding)

CF Industries
NRG Energy
Amerigroup (SA pick)
Global Geophysical Services


I did some cursory delving into Global Geophysical, an oil exploration company using seismic mapping. This one's a pass. Net losses 2 of the last 3 years and a bare profit that third year. And CFFO is high because of increasing amortization of goodwill and intangible assets. While that's an expense added back in for cash flow purposes, it's not the best of things to see. Why amortize it now? What did they purchase that requires that? And why are they losing money if they're bringing in significant CFFO?

NRG Energy I've been looking at more closely. This company generates electricity and sells it to utilities in the south, southwest, and northeast. Given what happened at Fukishima, they've just written off their investment in a JV that was expanding a nuclear plant in Texas, despite the design of the plant being modern instead of 40 years old. Expecting certification and loan guarantees to become much more difficult to get, which is probably true. Unfortunately, it didn't pass my newest final test of, when I buy, am I convinced that it has a good chance of beating the market? I had to say "no" but without really placing a reason behind that. Just a sense from the time I spent looking at it.

Southwest Airlines is a pretty well-run airline, but I'm somewhat influenced by Buffett's comments. However, it is a pick by David G in Stock Advisor, which is a point in its favor. Will look more closely at this one.

Amerigroup is another SA pick and handles Medicaid for states. A bit of uncertainty for that business model, but it's been a pretty good performer. Look more.

CF Industries is a fertilizer company and just bought all (or a majority, can't remember which) of another fertilizer company. Look into it more.

The others I'm not familiar with, but the industries and numbers make them attractive at this time.

Lots of investigating ahead. :-)

Cheers,
Jim

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Author: BlazerMania Big red star, 1000 posts Top Recommended Fools Ticker Guide CAPS All Star SC1 Red Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 354 of 1045
Subject: Re: Latest screen results Date: 5/19/2011 12:01 PM
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SanDisk might be interesting. It has a very high CAPS rating. The stock has been down lately due to competition concerns, but given the results of your screen, perhaps beaten down a bit too much.

Fletch

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Author: BlazerMania Big red star, 1000 posts Top Recommended Fools Ticker Guide CAPS All Star SC1 Red Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 355 of 1045
Subject: Re: Latest screen results Date: 5/19/2011 12:18 PM
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Dr. Pepper Snapple Group (DPS) might be worth a look as well.

For Q1 (ending 3/31/11) YoY: sales were up 7%, net income was up 28%, and quarterly dividend was just increased to $.32 per share for a 3% dividend yield.

Sales have been decreasing the last couple of years, so maybe the 0.5%, 0.3%, and 0.0% growth the market is expecting is reasonable. But if Q2 2011 sales come in ahead of Q2 2010 the way Q1 did, it could look compelling. And given the stock's recent run up since mid-February (up from $34 in the last three months, or 24%), apparantly others think so as well. Plus, you get a 3% dividend while you wait for the thesis to play out.

Fletch

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Author: TMFGebinr Big gold star, 5000 posts Top Recommended Fools Old School Fool Supernova Phoenix 1
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Subject: Re: Latest screen results Date: 5/19/2011 12:52 PM
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SanDisk might be interesting.

Hi Fletch,

I looked at SanDisk a few months ago and decided to go with its competitor Western Digital.

Cheers,
Jim

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Author: TMFGebinr Big gold star, 5000 posts Top Recommended Fools Old School Fool Supernova Phoenix 1
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Subject: Re: Latest screen results Date: 5/19/2011 12:55 PM
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Dr. Pepper Snapple Group (DPS) might be worth a look as well.

Hi Fletch,

I looked at Dr Pepper, too, but the FCF number is an anomaly due to a big payment made by Pepsi a while back. Details in http://www.fool.com/investing/value/2011/02/16/3-stocks-for-...

Keep 'em coming, though! :-)

Cheers,
Jim

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Author: rd80 One star, 50 posts CAPS All Star Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 358 of 1045
Subject: Re: Latest screen results Date: 5/19/2011 11:15 PM
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A couple jumped out at me.

Ford - Still a MUE stock even with auto industry improving and production slow downs at the Japanese competitors? Seems worth a closer look.

GE - Finance arm performance has been climbing out of the gutter; big share buyback and more dividend increases planned; has beat expectations each of the last four quarters.

MKSI - This turned up in a screen for cash-rich small-caps I ran last fall - http://www.fool.com/investing/general/2010/09/01/cash-rich-s... MKSI was one that I liked well enough to add as a CAPS pick - should have followed that up with a buy 'cause it's done really well. I haven't followed it much since the article, but if it only takes low single-digit growth assumptions in a DCF to get to the market price, it's worth some more homework.
I'm assuming the last several columns are using a DCF to back into implied growth assumptions that match the current price, correct?

Many thanks for sharing the screen.

Fool on, Russ

Disclosure: Long GE

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Author: TMFGebinr Big gold star, 5000 posts Top Recommended Fools Old School Fool Supernova Phoenix 1
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Subject: Re: Latest screen results Date: 5/20/2011 6:58 AM
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I'm assuming the last several columns are using a DCF to back into implied growth assumptions that match the current price, correct?

Hi Russ,

Thanks for joining the discussion. I'll take a closer look at MKS Instruments and thanks for the idea.

Ford's in the MUE port and I'm thinking of adding my last position in it. With strong debt paydown this year, institutional investors will begin to buy more of it and that should help a lot.

I've been going back and forth in my mind about GE. Such a huge conglomerate that I've always found difficult to get a handle on but then the price has been beaten down so much.

Answering your question, yes. Those are the annual growth rates of TTM FCF for the years shown using a 15% discount rate to get a DCF model to produce a share price equal to the then-current share price.

Cheers,
Jim

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Author: TMFThump Big gold star, 5000 posts Old School Fool Ticker Guide Home Fool CAPS All Star Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 360 of 1045
Subject: Re: Latest screen results Date: 5/20/2011 12:25 PM
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Jim

Doesn't include financial companies of any type.

Just out of curiosity I'm wondering why you filtered financial stocks out. Would this have also eliminated businesses like ratings agencies and insurers?

Doug

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Author: TMFGebinr Big gold star, 5000 posts Top Recommended Fools Old School Fool Supernova Phoenix 1
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Subject: Re: Latest screen results Date: 5/20/2011 12:53 PM
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Hi Doug,

Couple of reasons. A book value valuation is much better for financial companies. And, I don't understand them as well as others. So there's a practical reason, too.

Yes, it eliminates insurers, not sure about ratings agencies.

Cheers,
Jim

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Author: TMFThump Big gold star, 5000 posts Old School Fool Ticker Guide Home Fool CAPS All Star Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 362 of 1045
Subject: Re: Latest screen results Date: 5/20/2011 1:30 PM
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Jim,

Think I'll just cut/paste your comment about understanding financials. The wonder of it is why I have as much exposure there as I do. Every once in awhile you take stock of your portfolio and are left scratching your head as to how it came to be. In recent years I've stayed away from book value as a measure too. If you don't believe the books to begin with, which pretty much sums up my feelings, no sense giving it a second look either.

For the most part the financials I've got are what I consider legacy holdings. Most of it originated with parents and grandparents, and, after I'd absorbed the body blows of the credit crisis/financial meltdown it seemed like they had only one direction to go. The only thing I watch is the direction of loan-loss reserves and capital ratios. I don't understand banks either, but I stick to a plan that says if they are among the best capitalized and have a solid loan portfolio then they should benefit from a long awaited turn-around.

Where I made a big mistake was in concluding that the sins of the industry were largely driven by big, money center banks and that they would be the ones to suffer the most from increased oversight. I was correct on the former but dead wrong on the latter. It made sense to me, but it completely ignored the underlying politics and influence of these big financial institutions. I stuck with smaller, regional banks, and they've been squeezed the hardest.

Doug

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Author: BlazerMania Big red star, 1000 posts Top Recommended Fools Ticker Guide CAPS All Star SC1 Red Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 363 of 1045
Subject: Re: Latest screen results Date: 5/21/2011 12:21 PM
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From someone who often crosses paths with regional and local banks and their real estate lending departments (commercial and multifamily) I think those loan portfolios are the scariest. The underwriting generally wasn't that great to begin with, and then when the loan goes bad, the smaller guys don't have near the workout capabilities of the big guys, or the financial resources for wide-scale loan resizes.

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Subject: Re: Latest screen results Date: 6/23/2011 9:25 AM
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Hi everyone,

Still going through these for new ideas. Western Refining has been a good choice in the week the port's owned it -- ha!

Bill Mann recently told a group of us here that in running a port, you've got to be able to turn over a lot of rocks fairly quickly. The corollary is that you've got to be able to say "no" fairly quickly, too. With that in mind...

I've always had a soft spot for casino and gaming stocks. I enjoy visiting casinos (my wife and I are going to Las Vegas the weekend after the Fourth) and I like the idea of making money off of a sure thing (casino game odds always favor the house).

However, the two casino and gaming companies on the list aren't going to be entering the MUE port anytime soon.

Ameristar Casino (ASCA) -- 2.4% / 1.2% / 0% at $22.36 per share -- is a former Hidden Gems pick. It operates casinos in non-big name gambling destinations (St. Louis, MO; Omaha, NB; east Chicago and a couple of others). Unfortunately, its debt load is pretty onerous (D/E = 3.95) and it is skating on the edge of making the interest payments (EBIT-to-interest, called the coverage ratio, is 1.8). Pass.

Scientific Games (SGMS) -- 3.9% / 2.0% / 0% at $9.69 per share -- makes printed lottery tickets, lottery transaction machines, and machines and systems for pari-mutuel betting. It, too, is in trouble. It's had a net loss for the past 3+ years and had been on a downward trend for the three years before that. It's D/E is near a 9-year high at 2.88 and over the past two years, its coverage ratio has been 1.0, meaning that all operating income has gone to pay interest payments. Pass.

This is going to be the situation with the majority of the situations that show up on this kind of screen. Basically, I'm looking for companies that the market thinks will do very poorly going forward. Most of the time, the market's going to be right. I don't think the market is efficient, but in the words of my friend Jim Gillies, it's mostly efficient.

Cheers,
Jim

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