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Subject:  Re: IETC screen thoughts, results, etc. Date:  6/24/2005  8:35 PM
Author:  mklein9 Number:  398 of 1817

Hi Hewitt and all -- I have been working hard this week on the IETC screen and related.

Here is one thing that I am finding particularly interesting (and potentially rewarding from an investment point of view): companies that show a steady staircase progression but only in the most recent year ended up in the Earnings Power Box seem to provide consistent and high returns at least for the next year, if not longer. I am also applying a Free-Cash-Flow-based valuation metric which I'll describe in a followup post.

But I wanted to float the question above, whether anyone has tried finding companies that have shown consistent progress toward the EPB but only recently ended up there? I am finding, generally, that companies that have been in the EPB for a while are generally quite pricey already and, while they may be safe companies, do not seem to be undervalued bargains.

Bottom line, I think the two-pronged approach (Defensive and Enterprising earnings) is just a fantastic idea, one long overdue!

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