Stock Picking Process

Transcription

1 Stock Picking Process

2 Our Objective Use proprietary screening to determine, what we consider, the Top 25 stocks.

3 INVESTING UNIVERSE First Screen Popular Lists Current List Screen-Based List Master List Top 400 Stocks Second Screen Analyst Favorites Category Value Category Growth Category Ultimate List Top 100 Stocks Quality Category Sentiment Category Scoring Process Final List TOP 25 STOCKS

4 Investing Universe 10,000+ Stocks Master List 400 Stocks 400 Ultimate List 100 Stocks Stock Stars

5 INVESTING UNIVERSE Popular List: -Top 50 stocks IBD -Top 100 stocks VL -Top 36 stocks SS -Top 37 stocks MS -Top 50 stocks B First Screen Three Evaluation Lists Current List: - Current Nominees - Personal Nominees Screen-Based List: -Value Screen -Growth Screen -Momentum Screen Master List TOP 400 Stocks

6 Top 50 Stocks: Investors Business Daily The IBD 50 is a list of 50 top-rated growth stocks in IBD s database with top fundamentals showing strong relative price strength in the market. Criteria to pick stocks: EPS Rating Relative Price Strength Return on Equity Management Ownership

7 INVESTING UNIVERSE Popular List: -Top 50 stocks IBD -Top 100 stocks VL -Top 36 stocks SS -Top 37 stocks MS -Top 50 stocks B First Screen Three Evaluation Lists Current List: - Current Nominees - Personal Nominees Screen-Based List: -Value Screen -Growth Screen -Momentum Screen Master List TOP 400 Stocks

8 SCREEN-BASED LIST Investment Style: VALUE Screen Tests Investment Style: GROWTH Screen Tests Investment Style: MOMENTUM Screen Tests Stock Screener Stock Screener Stock Screener Value Screen 1 Relative Value Growth Screen 1 Relative Growth Momentum Screen 1 Relative Strength Value Screen 2 Value Screen 3 Growth Screen 2 Growth Screen 3 Momentum Screen 2 Momentum Screen 3 Comparative Value & Growth Contrarian Opportunities Comparative & Financial Strength Comparative & Sustainable Growth Moving Average & Behavioral Relative Momentum

9 Screen-Based Tests *

10 Value Screen 2: Comparative Value 1. P/E Ratio <= Indy. Avg. P/E 2. Price/Sales <= Indy. Avg. P/S 3. TTM ROE > Indy. Avg. TTM ROE 4. TTM ROE > y Avg. ROE > 5 Y Indy. Avg. ROE 6. LT Debt/Equity ratio <= Indy. Avg. LT Debt Ratio 7. Price/Book <= 3 8. EPS Growth Est. > Indy. Avg. EPS Growth Est. 9. Y1 EPS Est. Growth > 0

11 Screen Results: Value Screen 2 FIELD OPERATOR COMPARE TO: STOCKS P/E Ratio <= Indy. Avg. P/E 1809 Price/Sales <= Indy. Avg. P/S 2730 TTM ROE > Indy. Avg. TTM ROE 2689 TTM ROE > Y Avg. ROE > 5 Y Indy. Avg. ROE 2445 Indy. Avg. LT Debt/Equity LT Debt/Equity Ratio <= Ratio 2663 Price/Book <= Average Price/Book Ratio 4468 EPS Growth Est. > Indy. Avg. EPS Growth Est Y EPS Est. Growth > COMPANIES MET THE CRITERIA: AS OF AUGUST 2018 COMPANY NAME SYMBOL SECTOR Axcelis Technologies Inc. ACLS Technology CBRE Group Inc. CBRE Services McGrath RentCorp MGRC Services Hub Group Inc HUBG Transportation Huntington Ingalls Industries HII Transportation New Jersey Resources Corp NJR Utilities

12 First Screen INVESTING UNIVERSE 10,000 + Stocks Master List TOP 400 Stocks

13 Second Screen Master List Top 400 Stocks Second Screen Analyst Favorites Category: 1.Most Repeated Stocks Value Category: 1.Catching Up Stocks Growth Category: 1.Historical comparison 2.Industry Comparison Quality Category: 1.Industry Leaders 2.Fastest Turnover Sentiment Category: 1.High P/E Multiples 2.Institutional Ownership

14 Second Screen*

15 Third Screen Ultimate List: Top 100 Scoring Process: - Growth Score - Profitability Score - Financial Health Score - Momentum Score Stock Stars List TOP 25 STOCKS

16 TOP 25 STOCKS September 2018 Growth Stock Picks September-18 RANK TICKER NAME SECTOR INDUSTRY 1 NVDA NVIDIA Corporation 10 - Technology Semiconductors 2 AMZN Amazon.com, Inc Services Retail (Catalog & Mail Order) 3 V Visa Inc 09 - Services Business Services 4 LNG Cheniere Energy, Inc Energy Oil & Gas Operations 5 ISRG Intuitive Surgical, Inc Health Care Medical Equipment & Supplies 6 FANG Diamondback Energy Inc 06 - Energy Oil & Gas Operations 7 COST Costco Wholesale Corporation 09 - Services Retail (Specialty Non-Apparel) 8 PYPL Paypal Holdings Inc 07 - Financial Consumer Financial Services 9 WLK Westlake Chemical Corporation 01 - Basic Materials Chemicals - Plastics and Rubbers 10 FB Facebook Inc 10 - Technology Computer Services 11 HD Home Depot Inc 09 - Services Retail (Home Improvement) 12 AAPL Apple Inc Technology Communications Equipment 13 GOOGL Alphabet Inc 10 - Technology Computer Services 14 BABA Alibaba Group Holding Ltd 09 - Services Retail (Catalog & Mail Order) 15 URI United Rentals, Inc Services Rental & Leasing 16 KEY KeyCorp 07 - Financial Regional Banks 17 GD General Dynamics Corporation 02 - Capital Goods Aerospace and Defense 18 BAC Bank of America Corp 07 - Financial Regional Banks 19 FDX FedEx Corporation 11 - Transportation Air Courier 20 DEO Diageo plc (ADR) 05 - Consumer Non-Cyclical Beverages (Alcoholic) 21 ATVI Activision Blizzard, Inc Technology Software & Programming 22 SYK Stryker Corporation 08 - Health Care Medical Equipment & Supplies 23 GS Goldman Sachs Group Inc 07 - Financial Investment Services 24 DWDP DowDuPont Inc 01 - Basic Materials Chemical Manufacturing 25 C Citigroup Inc 07 - Financial Investment Services As of August 31 st, Subject to change.

17 September 2018 Growth Stock Picks As of August 31 st, Subject to change.

18 September 2018 Growth Stock Picks As of August 31 st, Subject to change.

19 September 2018 Growth Stock Picks As of August 31 st, Subject to change.

20 September 2018 Growth Stock Picks As of August 31 st, Subject to change.

21 Our Stock Selection Discipline Process is dynamic but we are not traders Buying and selling designed to follow trends

22 BigFoot Investments (a DBA of Lee Johnson Capital Management) does not promise, guarantee or imply that you will improve your operation, or increase your revenues. As with any business, earnings potential and successful or unsuccessful use of BigFoot Investments products and materials will widely vary among our customers depending on many factors, including but not limited to, the customer s finances, knowledge and skill set, creativity, motivation, level of effort, individual expertise and as such we do not guarantee your success or income level. The information conveyed by BigFoot Investments, as well as the information otherwise conveyed in these materials is intended to provide you with basic instruction regarding your business or operation. BigFoot Investments does not guarantee any results or returns based on the information you receive. Past performance or examples of other s performance is no indication or guarantee of your anticipated future results, and individual results may vary. We are not responsible for any success or failure of your business if you implement the information you receive from us. We provide a tool that you can use to try to improve the operations of your business. All information contained or received through the use of our materials is provided as is without warranty of any kind. We hereby disclaim all warranties with regard to the information contained in our materials including without limitation all expenses, statutory and implied warranties of merchantability and fitness for a particular purpose.