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No. of Recommendations: 2
So, if you have a way to scan the whole market and identify companies that are in, say, the lower-left box BUT that are moving in an upper-right direction, then I think you may find some great stocks.

Well, what I have at the moment is basically the same limited and simplified screen, but I have adapted in the following ways:

1. The last <N> (or more) years have been outside the earnings power box;

2. The most recent year has been inside the earnings power box (including TTM), and satisfies a few other IETC checks such as RGD > 20%, debt repayment period < 5 years, and a valuation such that share price is between 0.4 and 1.2 times an FCF-based DCF, and not a financial company;

3. The overall progression of defensive and enterprising earnings has still been a staircase-looking function

Without any further checks, the resulting list looking for both 3 and 4 years of being "outside the box" is:

CAW
FFEX
N
IIIN
ATVI
MUR
NUE
PCR
SWK
AMPX
APSG
ALV
MTXX
JAKK
ALGOF
EON
ICAB
TTMI
USPI
NFP
PER
IPS
ASI
ICAB
OVTI
GMR

That's a pretty short list! Personally I'd stay away from steel and other metals or natural resources companies because of their very large, likely cyclical, rises in the last couple of years.

-Mike
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