Please note the great comment that came from Al to the most recent post, “Scorecard and Screening Talk: Relaxing More Filters.” Simply look to the comments below that post. I will not be including our conversation found in that commentary in a detailed Q & A post in the future (like several I have done of late). So I thought bringing attention to the comments in the manner of this brief post might prove helpful.
Parts A and B of my Scorecard exist to determine the “quality” of the balance sheet. Parts C and D of the Scorecard use the balance sheet numbers to define a low price “if” quality has been assured in Parts A and B. Taken as a whole, the Scorecard recognizes that a low-risk situation is one where I buy into a healthy company when a share of company ownership is available at a bargain price. The absence of quality or a low price means I’m taking more risk.
As discussed in my book, I use the finviz website to screen for stocks, selecting filters in a manner that would turn up companies that could possibly meet both my quality and low-price standards. The standards are then implemented on a particular stock through the parts of my Scorecard.
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My book, Choose Stocks Wisely, is simply about the balance sheet’s critical role to risk assessment as it relates to buying quality stocks at low prices. Yet, you rarely hear the balance sheet discussed when stock prices are the topic of conversation. Company earnings are always front and center and the balance sheet is not an earnings report but a statement about financial position and financial health.
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Please note that my Adjusted Floor Price Scorecard has been updated per a helpful request I received from a reader. I hope you will find it more user-friendly. There are more columns for scoring more stocks on the spreadsheet now and the columns have been widened.
I received a very nice note from Joe at my website recently. I’m including the following excerpt in this post. Joe wrote, “What you have also done though is opened my eyes to use this (Adjusted Floor Price Scorecard) for dividend-paying stocks. As you said in your book, the momentum money has piled into these stocks creating a mismatch between adjusted floor price and price today. With that being said, I still see application where I get ‘CONTINUE’ for ‘Liquidity’ and for ‘Solvency’ (from your Scorecard, parts A and B).”
Joe asks, “Do you have any suggested applications of your (Scorecard) spreadsheet to large-cap dividend-paying stocks?”
Joe asks a great question. I’ll respond to Joe’s specific question toward the end of this post but first I’ll use the essence of his question to hone in on my Adjusted Floor Price Scorecard further. Please note that the discussion here will only make sense if you have read my book, Choose Stocks Wisely, and sought to apply the Adjusted Floor Price Scorecard, revealed and explained in the book.
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A reader of my book requested that I make a couple of formatting modifications to my Adjusted Floor Price Scorecard. Accordingly, I have added columns to permit up to 15 ticker symbols at one time and expanded the width of the columns to accommodate large dollar amounts relative to analyzing even the largest of companies. It will be next week, though, before I can get the modified Scorecard uploaded here at the website. Keep an eye out for the change.
I wanted to share a photo of the recent Choose Stocks Wisely Seminar held on December 16, 2013 at Mississippi State University, Meridian Campus. I hope the participants enjoyed it as much as I did.
Synonyms for the word “merry” include “cheerful,” joyous,” “joyful,” “gleeful,” “happy,” and “glad.” From the New King James Version of the Bible, Luke, Chapter 2, verses 8-11 we read a portion of the Christmas advent, 8 Now there were in the same country shepherds living out in the fields, keeping watch over their flock by night. 9 And behold, an angel of the Lord stood before them, and the glory of the Lord shone around them, and they were greatly afraid. 10 Then the angel said to them, “Do not be afraid, for behold, I bring you good tidings of great joy which will be to all people. 11 For there is born to you this day in the city of David a Savior, who is Christ the Lord.”
As a Christian, Christmas has very special meaning to me. It is a time for me to remember that Jesus Christ, God’s beloved Son, came into the world over two thousand years ago to bring reconciliation to the world via the cross He would eventually bear at Calvary…..to remember that He came because He loves me and He loves you.
This Christmas, as my family celebrates the joy of remembering the birth of our Savior, we want to share our joy with you by extending our sincere desire for you to have a very Merry Christmas!
This is a continuation from last week’s post.
Vince inquired about a stock that he knew of that basically met my finviz screen but did not show up when he ran the screen. He asked, “What is your take on this?”
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Since my book, “Choose Stocks Wisely: A Formula That Produced Amazing Returns,” was released in early October, I’ve received a number of e-mails from readers. Some of these e-mails have included questions about different issues and I’ve attempted to answer each question received. One person, Al, who wrote me recently, suggested that I share some of the questions and answers I receive. I thought it was a great suggestion and am doing just that through this post, and several posts which will follow in coming weeks.
Arthur and John observed that my Finviz screen provided in the book presently only reveals a few stocks which pass the screen and are left to evaluate using my Adjusted Floor Price Scorecard. Arthur was pondering relaxing some of my criteria in order to reveal more stock candidates. John wonders if we are in a period of excessive risk-taking in the market, thus leaving fewer and fewer low-priced stocks.
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