Investment Idea Sharing April 21, 2014

This Week's Activity – April 19, 2014: 

This week my FinViz stock screener when set to my ‘Short List’ limits is returning two contract oil drillers, NE and RIG.  My Stock Evaluator.xls spreadsheet ‘Short List’ is NOT returning these two drillers because their Enterprise Value / Revenue (E.V./Rev) is a little above my upper limit of 1.5, and their Enterprise Value / EBITDA is slightly above my limit of 6.5.  FinViz does not provide E.V./ Rev. or E.V./EBITDA as a screening criteria, but they do have most of the rest of my ‘Short List’ screening criteria, so I like to use FinViz as a quick check on how well my ‘Short List’ is working each week.

Since NE and RIG are so close to my screening limits, I did more research and I like them.  The entire contract oil drilling segment is down due to fears that the price of oil will drop and cause them to lose revenue and profits.  But, several of these drillers have very good dividend coverage (<50% payout ratios) and have low Debt to Equity and low Goodwill.  So, I like their fundamentals.  The PUT options for NE and RIG are both paying about 10% for a Jan 2015 ‘At the Money’ PUT.  I like NE better because their 1 year revenue growth is 20% v.s. RIG at 0% and NE has a 25% Dividend Payout ration v.s. RIG at 43%.  I have placed a PUT Sell order for the NE Jan 2015 PUT at the $30 strike price for a price $3.30 / share.

Here is the FinViz screener link:

http://finviz.com/screener.ashx?v=151&f=fa_debteq_u0.8,fa_div_o1,fa_ltdebteq_u0.8,fa_netmargin_pos,fa_payoutratio_u70,fa_pb_u2,fa_pe_u20,fa_ps_u2,fa_salesqoq_pos,ta_highlow52w_a0to10h&ft=4

Here is a Stock Evaluator.xls spreadsheet view with NE and RIG sorted to the top along with all their other contract drillers so you can wee why I like these 2 the best:

http://www.ultimatestockfinder.com/stockevaluator_ne_rig.xls

Here is a good article discussing the overall contract oil driller market and focusing on ESV, which does not look nearly as good to me as NE and RIG:

http://seekingalpha.com/article/2135933-ensco-plc-is-a-6-percent-yield-enough-to-overcome-the-risks-involved-in-holding-the-shares

Here is a Motley Fool article on NE:

http://www.fool.com/investing/general/2014/04/21/key-takeaways-from-noble-corps-earnings.aspx

Here is a Seeking Alpha article on NE:

http://seekingalpha.com/article/2148903-noble-corp-continues-to-weather-the-storm-and-deliver-solid-results

This week, the world market indices were all up.  Here is an article explaining these up movements: http://news.yahoo.com/futures-edge-investors-await-earnings-onslaught-113843878--sector.html

Summary Table of Worldwide Market Index Closing values for this week:

 http://www.ultimatestockfinder.com/weekly_index_summary.GIF

I still think the markets are overpriced but I continue to look for good values on individual stocks of good solid companies. 

 

StockEvaluator ‘Short List’

View ‘Short List’ here: http://www.ultimatestockfinder.com/stockevaluator_short_list.xls

‘Short List’ screens using 12 fundamental value limits that I want to see in a stock before considering it as a possible buy. 

View our training video that shows how to enter your preferred values for each of these ‘Short List’ screening limits:

https://www.youtube.com/watch?v=FAwU48oEkJU

View the ‘Short List’ screening criteria and target limit values here: http://www.ultimatestockfinder.com/short_list_12_criteria.JPG

Stocks on the ‘Short List’ list this week are: GYRO, WACLY, TRR, BGFV, ATAI, CAJ, KYO, DCM, VSBN

I also use FinViz stock screener as a parallel check along with my ‘Short List’ to find good fundamental stocks that are near their 52 Week Lows.  Here is the FinViz stock screener link set to the 9 out of 12 ‘Short List’ limits that are available at FinViz.  

This is in the FinViz ‘Custom’ view:

http://finviz.com/screener.ashx?v=151&f=fa_debteq_u0.8,fa_div_o1,fa_ltdebteq_u0.8,fa_netmargin_pos,fa_payoutratio_u70,fa_pb_u2,fa_pe_u20,fa_ps_u2,fa_salesqoq_pos,ta_highlow52w_a0to10h&ft=4

Next Monthly Meeting 2^nd Tuesday of Each Month:

Tuesday, May 13, 2014, 7:30 PM at my house. 

Here are my Stock BUYs for This Week:

Stock Symbol:

Buy Date: 

Buy Price:  

Target Sell Price:

Here are my Stock SELLs for This Week:

Stock Symbol:  AA

Sell Date:  April 18, 2014

Sell Price:  $11

(I had sold an $11 call in Dec. 2013 for $.40, after which AA went up way more than I had expected, and was at $13.50 on Friday when I was finally Called out)

Buy Price: $9.72

Buy Date: Nov. 17, 2011

Here are my Mutual Fund BUYs for This Week:

Fund Symbol:

Buy Date: 

Buy Price: 

Target Sell Price:

Here are my Option (CALL or PUT) Sells/Buys for This Week:

Option:

Stock Symbol:

Sell to Open Date:

Expiration Date:

Strike Price:

Option Price:

Visit www.ultimatestockfinder.com to download our Stock Evaluator and Mutual Fund Evaluator spreadsheets, read training articles and check out all our web links for investing information.

Please remember to send me any other investing ideas, information or questions that you want to share with the group.

Thanks,

John D.

Disclosure: The author has no positions in any of the stocks or mutual funds mentioned in this article unless clearly stated above. We certify that except as cited herein, this is our work product. We received no compensation or other inducement from any party to produce this article.  Please see our full legal disclaimer at:  http://www.ultimatestockfinder.com/stockevaluator_disclaimer.html

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