Thursday, January 24, 2008

Reasonably Priced Survivor in a Bear Market Stock Investing Strategy

One Stock Market Strategy is to look at those stocks that have survived a large correction or bear market.

Near the bottom, the S&P 500 Stocks Above 50 day moving average went as low as 8% (historically very low). Just a day after the bottom, let us look at stocks that follow this criteria:
  1. Price is Above 50 Day Moving Average.
  2. Stock is less than 10% near 52 week high.
  3. Forward PE is less than 20.
  4. 5 Year Estimated Growth Rate greater than 15%
  5. (The last two entries, means Price Earnings to Growth Ratio (PEG) should be less than 1.33)

Only fourteen stocks met that criteria today using Yahoo Finance Screener:

  1. Blackrock (BLK) -- $27 Billion Financial company. Investment Manager.
  2. Raytheon (RTN) -- $27 Billion Defense Company.
  3. Tele Norte Lest (TNE) -- $8.8 Billion Telecom Company. Serves North America, Europe, Asia and Brazil. Operates Fixed Line and Mobile Telecom.
  4. Hudson City Bancorp (HCBK) -- $8 Billion Regional bank with no subprime exposure.
  5. Fairfax Financial Holding (FFH) -- $5 Billion property and casualty insurance and reinsurance, invesment management, and insurance claims management.
  6. Quilmes Industrial SA (LQU) -- South American Drink and Soda Company. Subsidiary of Ambev (ABV).
  7. Pan American Silver (PAAS) -- $2.7 Billion Silver Company.
  8. Sierra Health Services (SIE) -- $2.4 Billion Managed Healthcare Company.
  9. Mariner Energy (ME) -- $2 Billion oil and gas exploration, development and production company in West Texas and the Gulf of Mexico.
  10. Walter Industries (WLT) -- $2 Billion Coal Mining and Methane Gas company in the US, Europe, Turkey and Africa.
  11. Buckle Inc (BKE) -- $1.2 Billion Retailer that offers casual apparel, footwear and accessories for young men and women.
  12. CBIZ Inc (CBZ) -- $624 Million Business to Business company focusing on financial services, employee services, medical management professionals and national practices.
  13. MTC Tech (MTCT) -- $354 Million Defense Company provides modernization and sustainment, professional services, command, control, communications, computers, intelligence, surveillance and reconnaissance and logistics solutions primarily to the defense, intelligence, civilian and the federal government agencies.
  14. GP Strategies (GPX) -- $180 Million Company provides training, enginering, and consulting services mainly in the US, Canada, the UK, Mexico, Singapore, Malaysia and India.

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