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URL:  https://boards.fool.com/twic-123-looking-for-more-top-capshot-stocks-29666946.aspx

Subject:  TWIC #123 -- Looking for More Top CAPShot Stocks Date:  11/14/2011  9:24 AM
Author:  TMFEldrehad Number:  502 of 502

Greetings once again everyone.

For those who regularly follow these TWIC (This Week in CAPS) posts, you already know that I love the CAPS stock screener. After all, where else can one screen for investment ideas based not only on fundamental data, but also by incorporating the CAPS community intelligence as one of the screening parameters?

Noplace else, of course.

While the screener in CAPS is robust enough to look for just about any kind of stock to suit the needs of any kind of investor (looking for a small cap on a tear? A large stalwart that might be undervalued?), since this is a PRO board, and our own CAPShot score is pretty important to us, I'll once again set the screener to try to look for stocks that have some of the same characteristics that a top CAPShot stock does.

For those new to the CAPShot, you can learn more about it here:

http://newsletters.fool.com/1228/coverage/extras/2008/09/24/...

To reiterate, while far from a perfect proxy to the CAPShot, the CAPS screening paramaters are the ones I've been using, and do look for some of the same things that our CAPShot score does.

CAPS Rating: 4-5 Stars

Current Ratio: 1.25 or greater

Gross Margin: 35% or greater

3-Year Revenue Growth Rate: 19% or greater

TTM Return on Equity: 14% or greater

Long-term Debt/Equity Ratio: 0.0 to 0.5

Before I get to what this screen is turning up this week, I also like to go back and see how the last batch of stock this screen has turned up have fared. The last time we took a look at this screen for TWIC was on 5/16.


Ticker Company 5/16 Recent %Chg
CEO CNOOC, Ltd. 228.66 201.47 -11.9
CELG Celgene Corporation 59.52 64.57 8.5
ISRG Intuitive Surgical, Inc. 349.12 439.99 26.0
CTRP Ctrip.com International, Ltd. 46.36 34.27 -26.1
NTES NetEase.com, Inc. 45.21 44.59 -1.4
MR Mindray Medical International Limited 30.37 28.02 -7.7
QSII Quality Systems, Inc. 44.25 40.11 -9.4
TQNT Triquint Semiconductor 12.80 5.19 -59.5
VPHM ViroPharma, Inc. 18.62 21.72 16.6
EZPW EZCorp, Inc. 29.87 29.78 -0.3
Avg. -6.5
SPY S&P Deposit Rcpts. 133.19 126.66 -4.9


There are, of course, a few winners and losers in the list above (which will almost always be true for any group of stocks over time), and the results when comparing to the S&P benchmark are pretty mediocre -- my point here, though, is not any kind of attempt at mechanical investing. This screen, as with all screens for me, is simply a starting point for further research. After all, there are thousands of stocks out there, and I don't have the time to look at all of them. Narrowing the list, however, can be a great place to start -- and this screen is one way (of many) to narrow that list which also dovetails, to an extent, with what the PRO CAPShot looks for.

So, with all of that said, what does today's screen turn up? Here they are, in order of market capitalization (I should note that the screen turns up just over 100 stocks, only the top 5 are listed here):


CELG Celgene Corporation
TCK Teck Resources, LTD
CTSH Cognizant Technology Solutions Corporation
ISRG Intuitive Surgical, Inc.
SLW Silver Wheaton Corporation


Again, this isn't a list of stocks to necessarily invest in (though I suppose it could be), but I do hope that I've been able to highlight wat a valuable tool the CAPS stock screener can be -- and again, noplace else can one screen for investing ideas based on the community intelligence that is CAPS.

Regards,

Russell (a.k.a. TMFEldrehad)

P.S. I own no shares in any company mentioned in this post.
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