Here’s How to Fast Track for Ideas
Use the parameters listed below to quickly screen for potential stock ideas. You can usually find the information at these websites:
Company website
http://finance.yahoo.com
http://online.wsj.com (fee)
www.reuters.com
www.morningstar.com
Just fill in the answers with an X under yes or no on this easy to use worksheet. I like to see a stock fail no more than 3 categories before going further with more extensive research. Whether you choose to use Fast Track or any other screening tool, always thoroughly research the stocks that pass your screen before buying.
Company Stock Risk Profile Fast Track™
Company Name ———— Stock Symbol—————- Date
Yes —No
Cash and cash equivalents
and short-term investments
are stable or growing.
Low or no long term debt.
Cash generated from
operations is close to or
higher than net income.
Free cash flow has been
stable or growing.
Reported earnings have
equaled or exceeded analysts’
consensus earnings estimates
for the last four quarters.
Analysts’ consensus earnings
estimates have been stable
or rising.
P/E is less than 100% of the
average of the high and low
P/E’s of the last five years.
PEG is below the Industry’s
and S&P’s 500’s.
Management has been buying
stock.
Of the analysts following the
stock, no more than half are
recommending purchase.
Definitions:
Low long-term debt = long-term debt as a percentage of total capital of no more than 20%.
Free cash flow = cash from operations less capital expenditures.
PEG = price / forward earnings divided by forecasted earnings growth, usually the Street consensus for the next 5 years.
July 19, 2008 at 4:19 pm
[...] Fast Track results: Crane failed 3 of the 10 categories, and is a potential idea that’s worth the time to thoroughly research. [...]