7/12/2009

"SUPER COMPANIES"

Price to sales was a measure guru investor Fisher used to identify super companies.

Filter created

Shareholder friendly factor: This was a quick attempt to find companies not diluting their shares outstanding
1)[Avg3Yrs/TTM]>.94
Average shares outstanding over the past 3 years/ TTM shares outstanding >.94

2) Investor sentiment or smart money:
Shares short as a percentage of float <3%

3) Positive cash flow from operation and Earnings before interest taxes depreciation and amortization greater than zero. Trying to avoid distressed firms

4) Positive quarterly year over year revenue growth

5) Measure management greed: Management greed factor using SGA as a percentage of revenue: select only companies with a SGA/Revenue <.30

6) EV (Price – Cash +Total Debt)/Price <1.75 identifies companies with no significant debt or having large cash balance.

See the results

Link

No comments: