I tried to find quality stocks that meet these return criteria. Several stocks were found but I will just introduce only 3 ideas that may outperform the market over the next few years. But I can’t know that
The ideas also needed to past these additional hurdles.
1)Average operating income from 05-08 as a percentage of the current enterprise value greater than the current operating income as a percentage of the current enterprise value
2)Average prior 5 year ROIC greater than 20%
3)Shorts as a percentage of float less than 10%
4)Share count reduced or stable over the past 3 or 5 year period
5)Strong balance sheet: Enterprise value / Market Cap < 1.30
The ideas were in 3 separate industries, Medical Laboratories & Research, Publishing – Books and Railroads
Many other metrics were added, the ideas are as follows
Please click to review the ideas
