To reduce the universe of all possible
stocks in the market to the top 25
stocks that provide a high probability of
success.
INVESTING UNIVERSE
First Screen
Popular Lists
Screen-Based List
Current List
Master List
Top 400 Stocks
Second Screen
Analyst Favorites
Category
Value
Category
Growth
Category
Quality
Category
Ultimate List
Top 100 Stocks
Scoring Process
Final List
TOP PROBABILITY STOCKS
Sentiment
Category
Investing Universe
10,000+ Stocks
Master List
400 Stocks
Ultimate List
100 Stocks
400
100
25 Stock
Stars
INVESTING UNIVERSE
First Screen
Three Evaluation Lists
Popular List:
-Top 50 stocks IBD
-Top 100 stocks VL
-Top 36 stocks SS
-Top 37 stocks MS
-Top 50 stocks B
Current List:
- Current Nominees
- Personal Nominees
Master List
TOP 400 Stocks
Screen-Based List:
-Value Screen
-Growth Screen
-Momentum Screen
• The IBD 50 is a list of 50 top-rated growth
stocks in IBD’s database with top
fundamentals showing strong relative price
strength in the market.
• Criteria to pick stocks:
–
–
–
–
EPS Rating
Relative Price Strength
Return on Equity
Management Ownership
INVESTING UNIVERSE
First Screen
Three Evaluation Lists
Popular List:
-Top 50 stocks IBD
-Top 100 stocks VL
-Top 36 stocks SS
-Top 37 stocks MS
-Top 50 stocks B
Current List:
- Current Nominees
- Personal Nominees
Master List
TOP 400 Stocks
Screen-Based List:
-Value Screen
-Growth Screen
-Momentum Screen
SCREEN-BASED LIST
Investment Style:
VALUE Screen Tests
Investment Style:
GROWTH Screen Tests
Stock Screener
Stock Screener
Value
Screen 1
Growth
Screen 1
Relative
Value
Relative
Growth
Value
Screen 2
Value
Screen 3
Comparative
Value &
Growth
Contrarian
Opportunities
Investment Style:
MOMENTUM Screen Tests
Stock Screener
Momentum
Screen 1
Relative
Strength
Growth
Screen 2
Growth
Screen 3
Momentum
Screen 2
Comparative
& Financial
Strength
Comparative
& Sustainable
Growth
Moving
Average &
Behavioral
Momentum
Screen 3
Relative
Momentum
Value Screen 2: Comparative Value
1.
2.
3.
4.
5.
6.
7.
8.
9.
P/E Ratio <= Indy. Avg. P/E
Price/Sales <= Indy. Avg. P/S
TTM ROE > Indy. Avg. TTM ROE
TTM ROE > 0
5 y Avg. ROE > 5 Y Indy. Avg. ROE
LT Debt/Equity ratio <= Indy. Avg. LT Debt Ratio
Price/Book <= 3
EPS Growth Est. > Indy. Avg. EPS Growth Est.
Y1 EPS Est. Growth > 0
Screen Results: Value Screen 2
FIELD
P/E Ratio
Price/Sales
TTM ROE
TTM ROE
5 Y Avg. ROE
OPERATOR
<=
<=
>
>
>
LT Debt/Equity Ratio
Price/Book
EPS Growth Est.
1Y EPS Est. Growth
<=
<=
>
>
COMPARE TO:
Indy. Avg. P/E
Indy. Avg. P/S
Indy. Avg. TTM ROE
0
5 Y Indy. Avg. ROE
Indy. Avg. LT Debt/Equity
Ratio
Average Price/Book Ratio
Indy. Avg. EPS Growth Est.
0
STOCKS
2190
3581
4464
5909
3452
3864
5459
1236
832
7 COMPANIES MET THE CRITERIA: AS OF September 1, 2012
COMPANY NAME
3SBio Inc. (ADR)
Assurant, Inc.
Baker Hughes Incorporated
G-III Apparel Group, Ltd.
Halliburton Company
Medicines Company, The
WellCare Health Plans
SYMBOL
SSRX
AIZ
BHI
GIII
HAL
MDCO
WCG
SECTOR
Health Care
Financial
Energy
Consumer Cyclical
Energy
Health Care
Health Care
Securities offered through Triad Advisors, member FINRA/SIPC. Advisory services offered through Lee Johnson Capital Management, LLC (LJCM).
LJCM is an independent Registered Investment Advisor and is not affiliated with Triad Advisors.
First Screen
INVESTING UNIVERSE
10,000 + Stocks
Master List
TOP 400 Stocks
Second Screen
Master List
Top 400 Stocks
Second Screen
Value
Analyst
Favorites
Category:
1.Most Repeated
Stocks
Category:
1.Catching
Up Stocks
Growth
Category:
1.Historical
comparison
2.Industry
Comparison
Quality
Category:
1.Industry
Leaders
2.Fastest
Turnover
Sentiment
Category:
1.High P/E
Multiples
2.Institutional
Ownership
Third Screen
Ultimate List: Top 100
Scoring Process:
- Growth Score
- Profitability Score
- Financial Health Score
- Momentum Score
Stock Stars List
TOP PROBABILITY STOCKS
September 2012 Stock Picks
TOP 25 STOCKS
RANK TICKER
1 TFM
2 TJX
3 CF
4 PETM
5 RAX
6 ADS
7 RMD
8 ALXN
9 ROST
10 AAPL
11 ULTA
12
13
14
15
16
17
18
19
20
21
22
23
24
25
EL
GILD
AGU
HFC
ESRX
TSCO
WDC
EBAY
NEU
SWI
CRUS
CTB
SCSS
UTHR
September-12
NAME
Fresh Market Inc, The
TJX Companies, Inc., The
CF Industries Holdings, Inc.
PetSmart, Inc.
Rackspace Hosting, Inc.
Alliance Data Systems Corporat
ResMed Inc.
Alexion Pharmaceuticals, Inc.
Ross Stores, Inc.
Apple Inc.
Ulta Salon, Cosmetics & Fragra
Estee Lauder Companies Inc
Gilead Sciences, Inc.
Agrium Inc. (USA)
HollyFrontier Corp
Express Scripts Holding Co
Tractor Supply Company
Western Digital Corp.
eBay Inc
NewMarket Corporation
SolarWinds Inc
Cirrus Logic, Inc.
Cooper Tire & Rubber Company
Select Comfort Corp.
United Therapeutics Corporatio
SECTOR
09 - Services
09 - Services
01 - Basic Materials
09 - Services
10 - Technology
07 - Financial
08 - Health Care
08 - Health Care
09 - Services
10 - Technology
09 - Services
05 - Consumer NonCyclical
08 - Health Care
01 - Basic Materials
06 - Energy
09 - Services
09 - Services
10 - Technology
09 - Services
01 - Basic Materials
10 - Technology
10 - Technology
04 - Consumer Cyclical
04 - Consumer Cyclical
08 - Health Care
INDUSTRY
0957 - Retail (Grocery)
0945 - Retail (Apparel)
0103 - Chemical Manufacturing
0963 - Retail (Specialty Non-Apparel)
1036 - Software & Programming
0703 - Consumer Financial Services
0812 - Medical Equipment & Supplies
0803 - Biotechnology & Drugs
0945 - Retail (Apparel)
1006 - Computer Hardware
0963 - Retail (Specialty Non-Apparel)
SCORE
79.39
78.72
78.06
77.57
77.30
77.17
76.77
76.55
76.48
76.39
75.82
0521 - Personal & Household Products
0803 - Biotechnology & Drugs
0103 - Chemical Manufacturing
0609 - Oil & Gas Operations
0954 - Retail (Drugs)
0960 - Retail (Home Improvement)
1021 - Computer Storage Devices
0948 - Retail (Catalog & Mail Order)
0103 - Chemical Manufacturing
1036 - Software & Programming
1033 - Semiconductors
0436 - Tires
0421 - Furniture & Fixtures
0803 - Biotechnology & Drugs
75.32
75.18
74.86
74.76
74.53
74.09
74.03
73.49
73.38
72.91
72.78
72.29
71.97
70.68
As of August 31, 2012 - Subject to change.
September 2012 Stock Picks
Sectors in Portfolio
01 - Basic
Materials
12%
10 - Technology
20%
04 - Consumer
Cyclical
8%
05 - Consumer NonCyclical
4%
06 - Energy
4%
09 - Services
32%
07 - Financial
4%
08 - Health Care
16%
September 2012 Stock Picks
Service Industry in Portfolio 32%
13%
25%
0942 - Restaurants
0906 - Broadcasting & Cable TV
13%
0951 - Retail (Department & Discount)
0945 - Retail (Apparel)
0960 - Retail (Home Improvement)
0948 - Retail (Catalog & Mail Order)
12%
0963 - Retail (Specialty Non-Apparel)
0954 - Retail (Drugs)
25%
0957 - Retail (Grocery)
12%
Our Stock Selection Discipline
Process is dynamic but we are not “traders”
Buying and selling designed to follow trends