I can be Huge too

[antioch6]

This is the thread for my Mr. Market inspired stock picking method. It's the second weapon in my stock trading arsenal, after my longer term trades thread. These picks won't try to rely on general market timing, but more on outperforming markets through a mostly quantitative model. Here is the first "dump":

PKBK,AMIC,EIG,SMFG,AWH,CVLY,SLM,MNRK,DIT,NWLI,VSEC ,CWBC,NNI,XLS,NICK,TRW,WDC,SMBC,UVE,AFL,DNBF,MTU,E VBN,FITB,HBNC,PFBI,ESLT,TSH,SAI,LLL,COP,VSR,PNC,AT K,ACU,NOC,DLX,SKM,TCAP,RTN,NRIM,SPAN,MBVT,SFG,OLBK ,PL,AER,GLW,LMT,AFSI

[mrmarket]

Antioch..looks great. What are the key screen ingredients?

[mrmarket]

I like SPAN

[antioch6]

I use a basic FINVIZ.com screen for relative strength and valuation vs the market as a whole.

First I enter DIA SPY QQQ IWM in the screener to check the chart and performance.Then I use multpl.com to get an idea what the market P/E is.
I screen again filtering for stocks only, ttm P/E of under 50, 6 months and/or 12 months performance at least as good as the market. I also may or may not (depending how many stocks I get and where the market is) use 200 day moving average and 50 day moving average, new highs or 0-10% below 52 week highs.
I list them from lowest P/E to highest in the screener, then put them on a monthly Chart view. If I like the chart, I enter the stock symbol into Morningstar.com and check their annual restated earnings history for the past few years.
If I consider their earnings stable/growing/improving in a somewhat predictable manner, I judge what they should reasonably and conservatively earn over the next 12 months. I use this estimate to come up with my own current P/E for the company. If this P/E is attractive or reasonable considering the annual earnings trend, I include that stock into the dump you see above. After I have a decent number of stocks to work with (30-90, remember I look at each one by hand), I take a closer look at each one and consider what industry they are in, why they're stock might be more likely to go up than another on my list, etc. Basically what Mr. Market means when he says "Use your noodle."
Finally, I pick one or a few of the stocks from my list and go earn my profits. I don't have a goal where to sell my stocks using this method. I prefer to simply give my stocks time and a regular checkup a few times a year. Then I might replace them or sell them if something changes with the company or their P/E gets too high. I haven't picked what to buy for tomorrow, but seeing the large number of regional banks and aerospace/defense stocks in my screen, I will pick at least one stock from each group.

[antioch6]

I'm waiting a few days before making my decision to buy. My candidates so far are LMT, ATK, RTN, FITB, NRIM, MBVT.

[mrmarket]

I use a basic FINVIZ.com screen for relative strength and valuation vs the market as a whole.

First I enter DIA SPY QQQ IWM in the screener to check the chart and performance.Then I use multpl.com to get an idea what the market P/E is.
I screen again filtering for stocks only, ttm P/E of under 50, 6 months and/or 12 months performance at least as good as the market. I also may or may not (depending how many stocks I get and where the market is) use 200 day moving average and 50 day moving average, new highs or 0-10% below 52 week highs.
I list them from lowest P/E to highest in the screener, then put them on a monthly Chart view. If I like the chart, I enter the stock symbol into Morningstar.com and check their annual restated earnings history for the past few years.
If I consider their earnings stable/growing/improving in a somewhat predictable manner, I judge what they should reasonably and conservatively earn over the next 12 months. I use this estimate to come up with my own current P/E for the company. If this P/E is attractive or reasonable considering the annual earnings trend, I include that stock into the dump you see above. After I have a decent number of stocks to work with (30-90, remember I look at each one by hand), I take a closer look at each one and consider what industry they are in, why they're stock might be more likely to go up than another on my list, etc. Basically what Mr. Market means when he says "Use your noodle."
Finally, I pick one or a few of the stocks from my list and go earn my profits. I don't have a goal where to sell my stocks using this method. I prefer to simply give my stocks time and a regular checkup a few times a year. Then I might replace them or sell them if something changes with the company or their P/E gets too high. I haven't picked what to buy for tomorrow, but seeing the large number of regional banks and aerospace/defense stocks in my screen, I will pick at least one stock from each group.

Looks like a great system..please share your winners with us on this thread!

[antioch6]

Today I bought KRE at 36.84, and LMT at 123.65

[Deaddog]

A couple questions if I may;
Do you have targets?
Do you have risk control?
How long will you hold a non performing stock?

[antioch6]

Woah! I typed out a long reply then hit "Replay to Thread". This deleted my message and made me start over hahaha.

Do you have targets?
When the P/E gets too high after gains, or there is a better stock to replace it.

Do you have risk control?
I add more money to my accounts every year, buy companies with a reasonable valuation, and diversify among several. Also I have other strategies in case the market crashes or there is a downturn like in 2008.

How long will you hold a non performing stock?
That depends why it isn't performing. If something has changed because of regulations or the industry trend or new management I might consider selling at a loss. If the stock price is down and the company keeps making money with nothing else changed, the stock is a better value and I will consider buying more.

[Deaddog]

Do you have risk control?
Also I have other strategies in case the market crashes or there is a downturn like in 2008.

Can you give a little more detail on these strategies? I’m always looking for a better way to protect my capital in a bear market.