I’ve created several value stock screeners that will be updated on a weekly basis.
When I get results from just any regular screener like Yahoo or MSN, there is the trouble of having to go through each of the results but the value stock screens should make the process easier by comparing the numbers that really count.
So if you’re looking for cheap stock ideas, how about the following list of stocks categorized by different screening strategies that I employ.
Cheap Stocks Based on Valuation
These stocks are from the OSV screen. For each stock in the list, I add it manually as I research companies or from stock requests.
The objective of this screen is to identify the stocks that are cheap based on stock valuation of EPV, Graham Formula and DCF valuation.
The following stocks have current prices that are all below their respective valuations.
| Ticker | Price | Tang.BV | EPV | Graham | DCF | EY | FCF Yield |
|---|---|---|---|---|---|---|---|
| SPAR | $6.93 | $4.57 | $7.54 | $12.81 | $10.67 | 19.9% | 6.9% |
| JOSB | $44.77 | $13.71 | $47.08 | $52.17 | $45.58 | 20.6% | 11.1% |
| KTII | $113.85 | $0 | $122.73 | $162.95 | $134.12 | 15.7% | 8.8% |
| BOLT | $12.06 | $6.52 | $17.48 | $19.76 | $14.49 | - | 16.5% |
| PPD | $42.45 | $1.67 | $50.77 | $76.36 | $80.01 | - | 14.4% |
| ACU | $9.15 | $6.29 | $17.69 | $13.18 | $15.38 | 14.1% | 6.2% |
| DWSN | $24.42 | $17.67 | $27.15 | $53.01 | $55.40 | 33.7% | 16.4% |
Cheap Graham Stocks
These stocks are from the Graham stock screen. The company’s NNWC and NCAV values are used to determine the value.
| Ticker | Cash/Asset | Rec/ Assets | Inven./ Assets | NNWC | NCAV | Price | NNWC MOS | NCAV MOS |
|---|---|---|---|---|---|---|---|---|
| AFOP | 86% | 4.4% | 0% | $8.95 | $10.79 | $1.28 | 87% | 89% |
| ELST | 72.4% | 2.6% | 8.6% | $3.47 | $4.18 | $0.51 | 84% | 87% |
| SODI | 58.7% | 7.3% | 14.7% | $7.23 | $9.60 | $2.48 | 69% | 77% |
| AVGG | 58.1% | 31.4% | 0% | $0.36 | $0.44 | $0.25 | 58% | 66% |
| MGOF | 61.1% | 25% | 0% | $0.28 | $0.33 | $0.17 | 54% | 61% |
| AMGY | 68.9% | 2.9% | 10.2% | $0.60 | $0.77 | $0.50 | 32% | 47% |
Cheap Magic Formula Stocks
These stocks are from the Magic Formula Screen. The companies listed are the result of running the screen for companies with a minimum market cap of 50M.
| Ticker | Price | EY | FCF Yield | P/FCF | EV/FCF | ROA 5yr | ROE 5yr | FCF/Debt |
|---|---|---|---|---|---|---|---|---|
| ELNK | $8.69 | 107.7% | 12% | 4.4 | 8.4 | 7.1% | 10.7% | 55.3% |
| PDLI | $6.80 | 52.6% | 18.8% | 6.8 | 5.3 | -11.3% | -26.1% | 16.1% |
| CF | $96.73 | 29.8% | 8.3% | 12.1 | 12 | 2.6% | 4.4% | 61.3% |
| EME | $25.19 | 27.3% | 6.6% | 4.7 | 15.2 | 3.9% | 11.6% | 9.8% |
| UNTD | $7.40 | 26.7% | -6% | 5.7 | -16.7 | 9.1% | 15.1% | -10.1% |
| ENDP | $23.82 | 23.1% | 7.8% | 5.7 | 12.8 | 14.7% | 20.6% | 35.1% |
Truly Cheap Stocks
These stocks are from the cheap stocks screen. Truly ugly stocks where each company started off by meeting the following criteria.
- P/B less than 0.5
- P/S less than 0.5
- P/Cash Flow less than 10
- P/FCF less than 15
| Ticker | Price | Tang.BV | NWC | EY | FCF Yield | P/FCF | EV/FCF | FCF/Debt |
|---|---|---|---|---|---|---|---|---|
| HAST | $4.34 | $9.74 | $0.29 | 48.9% | 25.9% | 2.2 | 3.9 | 8.9% |
| MNTG | $1.80 | -$0.37 | -$14.69 | 21.6% | 25.6% | 3.4 | 3.9 | 1.1% |
| UUU | $6.16 | $9.53 | $3.64 | 0% | 13.2% | 5.2 | 7.6 | 126.3% |
| SGMA | $6.16 | $2.02 | $0.52 | 32.2% | 11% | 0 | 9.1 | 13.4% |
| GOK | $8.36 | $13.28 | -$9.37 | 55.6% | 9.6% | 2.7 | 10.4 | -0.9% |
Leveraged but Profitable
These stocks are leveraged but profitable. Profitable means they have positive FCF. This is a contrarian strategy as nobody likes companies with high debt, but the ability to generate FCF makes it interesting and the leverage creates opportunities for huge returns.
| Ticker | Price | EY | FCF Yield | P/FCF | EV/FCF | Debt/Eq | FCF/Debt |
|---|---|---|---|---|---|---|---|
| PEDH | $1.60 | 52.3% | 55.9% | 3.8 | 1.8 | 349.1% | 29.7% |
| BBI | $0.41 | 85.2% | 14.4% | 2.4 | 6.9 | 905.4% | 17% |
| NHWK | $3.07 | 22.5% | -31.2% | 4.8 | -3.2 | 88.9% | 13.9% |
| BAS | $9.87 | 11.5% | -24.4% | 4.3 | -4.1 | 120.3% | 13.4% |
| AOI | $5.09 | 21.9% | 10% | 3.4 | 10 | 438.3% | 10.2% |
Negative Enterprise Value Stocks
These stocks are from the Negative Enterprise Value screen. For people new to this strategy, negative EV stocks are loaded with excess cash which makes them ideal candidates for explosive returns. Here are some stocks that I’m currently following in a test portfolio. Although the portfolio is a few days old, the performance so far is unbelievable.
| Ticker | Price | Tang.BV | CROIC Growth | FCF/Sales 5yr | EY | FCF Yield | EV/FCF | Debt/Eq | FCF/Debt |
|---|---|---|---|---|---|---|---|---|---|
| NINE | $1.52 | $7.87 | 11.9% | 38% | 11.4% | 15.2% | 6.6 | 5.9% | 267.9% |
| PRLS | $2.65 | $0.05 | 31.2% | 13.4% | 21.1% | 26.4% | 3.8 | 16% | 252.1% |
| SCMRD | #N/A | $10.09 | 0.6% | 3.4% | 55.3% | 7.9% | 12.6 | 3.3% | 146.5% |
| IDSY | $2.96 | $0.49 | 0.1% | 2.5% | 192.9% | 19% | 5.3 | 4.3% | 134.5% |
Disclosure
I hold BOLT at the time of writing.
January 7th, 2010 at 11:43 am
great list! I have a few of them already on my watch list and just waiting for the price to reach my target.. keep up the good work
January 7th, 2010 at 11:50 am
What are your thoughts on Hast?
Ticker Price Tang.BV NWC EY FCF Yield P/FCF EV/FCF FCF/Debt
HAST $4.27 $9.74 $0.29 48.9% 25.9% 2.2 3.9 8.9%
January 7th, 2010 at 6:48 pm
Jae, very good work. After going through them, I am putting a table together with Pros and Cons on each. Will send to you, you are more than welcome to post it.
January 7th, 2010 at 6:54 pm
PEDH’s cash yield looks unreal, then I turned around, it went up 16% today.
Also, it might be interesting to put a cash yield column under graham stocks. These stocks have prime balance sheet, biggest concern is cash burn, but if it can generate >5-10% cash yield, it then becomes very interesting. A few of them are too tiny.
January 7th, 2010 at 10:18 pm
Jae,
Awesome service. You have really hit it out of the park this time. I have linked to this page from my blog. Great work!
Chroma´s last blog ..Free Value and NCAV Screeners
January 8th, 2010 at 11:23 am
@ Tom,
Which ones do you have on your list?
@Ryan,
I was curious about HAST myself but haven’t looked into it yet.
@slinj,
I like PEDH business model as I understand the market it operates in. Difficult but certainly a niche.
@Chroma,
thanks for the link!
January 8th, 2010 at 1:51 pm
Jae, can you give your thoughts on NITE. Appears undervalued but I couldn’t get the valuation using your premium worksheets…some of the data wouldn’t pull back.
January 9th, 2010 at 11:55 am
Hey Ron,
NITE is a financial company which won’t work with the spreadsheet. There is no publicly available cash flow statement for them.
January 13th, 2010 at 1:16 pm
The ratios for NINE in the negative enterprise category were accidentally calculated using both yuan and dollars. The book value is actually less than $3.77 (assuming some of the ‘other assets’ are not tangible) versus the $7.87 displayed in the chart. I haven’t calculated it, but I would imagine the other ratios might be incorrect. Nevertheless, it still looks undervalued.
January 13th, 2010 at 10:47 pm
Thanks for letting us know. The calculations are performed automatically so unfortunately, I can’t correct the results for each one. Always important to double check numbers and reports.