November 2, 2017

Ranking the Growth of Free Cash Flow and Finding the Leaders

Intuitively, most investors would assume that consistent growth in free cash flow within a company, would result in a high performing stock. Well today we’re going to test out that theory with the “Free Cash Flow Growth Leaders Stock Screener”. With this screener, we’re looking for:

· Large and stable companies; companies that have a market cap over a billion dollars sectioned off into their respective sectors.

· Companies that rank in the top 15% of their sectors for free cash flow growth over the last trading year as long as their FCF is greater than 0.

We plotted two extra variables, capital expenditures and sales growth.…

July 12, 2017

Industry Rotation – Something you might stay away from

I’ve been seeing a lot of articles recently that are very focused on the idea, that by purchasing the industry or sector that performed best over the past year you are giving you the best chance at making returns. I’m a little skeptical, but just as hopeful to see whether or not this is a potential new avenue to take in my portfolio.

Here is the base screen for what we want to do. This screener takes each sector and finds the total average change of close over the past year – making sure they have a market cap of at least $1 billion.…

June 26, 2017

Is Biotech back from the dead?

 

  Biotech, a sector that can make or break your portfolio. But first off, what even is “biotech”? In a nutshell, biotech is the use of living organisms to make products or run processes. Biotech is most known for the vital role it plays in the field of medicine. However, biotech is not limited to just medicine as it finds application in other areas such as food and fuel. Biotech combines many fields into one including biology, physics, chemistry, mathematics, and of course technology. What helped this sector really take off was the discovery of DNA in 1953 which allowed for tremendous advances in the field of biotechnology.…

June 13, 2017

Are the FANG stocks invincible?

Tech has been on an absolute tear this year with the whole sector up almost 20% since the beginning of 2017, with an outstanding performance from the FANG stocks. FANG is an acronym used for arguably the most notable tech companies in today’s market which have continuously churned out tremendous returns. The FANG is made up of Facebook(FB), Amazon(AMZN), Netflix(NFLX), and Google which is also known as Alphabet(GOOGL), but for this acronym will remain as Google. So far, 2017 hasn’t offered any promising signs of economic growth as the current administration has failed to hit the ground running, even with a unified GOP government.…

June 1, 2017

Low debt vs. High debt

  Debt, a word that consumers and college students know all too well. How do companies view debt and how does it affect their stock price? Let’s find out by taking a look at both high debt companies and low debt companies.We’ll start off with high debt. This Equities Lab stock screener finds companies with a debt to equity ratio ranking them in the top 25% of the market, and total liabilities to assets ranking in the top 25% of the market while outperforming by 2%.

  High debt companies have more pressure under them to perform well in order to please their shareholders, while also avoiding drowning in their own debt.…

May 12, 2017

Relative Strength Indicator (RSI)

 

 

I’m not a big technical trader. That being said, a lot of people in the information age are, and because of that we have been sure to include a number of technical indicators within the Equities Lab system. One such indicator, the relative strength index(RSI), is extremely common among technical analysts, and I think it is time to put the RSI indicator to the test.

What is the RSI Indicator?

Developed by J. Welles Wilder, the Relative Strength Index is an oscillator that changes based on the price movements in a company’s share price. It suggests that a company is overbought if the indicator is above 70, and oversold when the indicator is below 30 – meaning that you should buy into a company at any level below 30 and sell/short at any level above 70.…

April 1, 2017

Trump the Market

   Over the past few weeks’ major indices have continued to hit new all-time highs, it seems like almost every industry is performing well. However, it’s important not to get lost in all the commotion and news surrounding the markets and continue to look for safe investments with “yuge” returns. Under the current administration, investors are anticipating a more pro-business environment complimented by tax cuts and deregulation for certain industries. Since there is a lot of anticipation relying on fiscal policy, it is important not to get ahead of yourself. While the Trump administration is promising a lot of economic growth, many economists beg to differ and argue that we are already close to full natural employment and that there isn’t much room for 3-4% GDP growth.

January 10, 2017

The Industry Transition of Retail

   In my last blog, I wrote about getting used to the Equities Lab software and how it can be so very useful for finding value in certain sectors with advanced screening. Another useful way to use the stock screening software is to find investments you should avoid. For example, let’s take a look at some big retail names. Macy’s is arguably the most well-known American retail store, but its stock has been taking a beating in recent times.

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   As you can see, Macys’ beating started mid-August of 2015 due to low revenue growth.
  The chart above shows Macy’s performance in more recent times, the chart below shows an expansion of Macy’s performance all the way back to the year 2000.

May 24, 2016

Was There Any Hope for Your Portfolio this Month?

May was a difficult month for almost every sector. The markets were beaten up again and again. However, is there a shining light somewhere?

Above you see heat map of every invest-able stock in the US market that has a close > 0, total yearly revenue > 0, and a trading volume value over $500,000 sorted by sector. Though there are some sectors that didn’t do as bad as the rest(Banks and Utilities) virtually every sector lost money over this past month. Remember, that we have it set to where all of the dark red cells are companies that lost 10% or more over the past month, and the dark green are companies that have made 10% or more over the past month.…

May 11, 2016

Yet another Sell in May and Go Away (yasimaga) post

A few sell in may articles…

Have you read any “sell in May and Go Away” articles? These articles suggest that returns from May to October are terrible. So bad, in fact, that you’d be better off just avoiding the whole mess altogether. I’ve included some of the better-written posts for your reading pleasure

Forbes: Sell in May and Go away?

Adam Sarhan opines that a bad jobs report and lackluster earnings will cause problems. But his title is clearly referring to the seasonal pattern.

Wikipedia: Sell_in_May

It covers research in many countries and is enough to convince me to dig further.…