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Author: blesto Big red star, 1000 posts Global Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 137  
Subject: Re: 7 Signs of a Winner screen results Date: 12/6/2011 8:41 PM
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That's an interesting list of stocks and an interesting set of metrics you use for screening. On the rising Book Value, where do you find historical numbers or the growth rate?

I'm gonna integrate those 7 metrics into my ever evolving list of metrics. Most of them from Dan Caplinger articles. Rating each pass or fail. When I look at a company this is where I start before I decide to look into said company more deeply.

1. 5-Year Annual Revenue Growth > 15%
2. 1-Year Revenue Growth > 12%
3. Gross Margin > 35%
4. Net Margin > 15%
5. Debt to Equity < 50%
6. Current Ratio > 1.5 (Dan sometimes shows 1.3 or 1.4 but I like 1.5)
7. Return on Equity > 15%
8. Normalized P/E < 20
9. Current Div Yield > 2%
10. 5-Year Dividend Growth > 10%
11. Payout Ratio < 75%

Now, I prefer dividend payers but as you know not every great stock pays one out. So if the company doesn't have a divi, I over look those last 3 divi metrics if the company interests me.

I can't say I've used this for every stock I've bought. I've only just recently started to compile this list to use. When I go over the stocks I own, It makes me think twice or thrice about why I own them.

I looked through ORCL and PEGA since they both have the highest insider ownership in your article and they both pass 7 out of 11! Not bad. I don't have the deep pockets for Capital IQ so I get my numbers from the CAPS pages, YAHOO finance or my discount broker's pages.
I like free. :-)
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