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I have an idea for an additional item in the screener section: A "Why Isn't This Rule 1?" tool. So, you could put in your favourite stock, hit submit, and a page would return indicating why it failed to be Rule #1.
Joseph, thank you for the idea! Let's walk it step by step.
What ratios are most important for Rule #1 followers? Besides 4M, which are very subjective (like business is supposed to have a Meaning to you personally), I think they are:
- Growth Rates (we have Year-over-Year and historical rates aggregated as Growth Grades)
- Debt / Free Cash Flow ratio
- Value Price estimate (should give enough margin of safety, preferably > 50%)
- Investment Recovery Time (should be less than 10 years)
All of the above listed ratios are shown on the Stock Screener results page. They are not located side by side though, but they are there and all of the values are highlighted. Therefore, if you see numbers in those columns on the red background - those are reasons why any particular stock is not a good Rule #1 candidate. If all the backgrounds are green, well, you found your perfect company! Would you agree?
Did I miss anything? If I did, I would be happy to include it - just let me know.
Usually, it is not easy to find a stock with all greens - it is always some sort of a compromise - you may close your eyes on lower growth rates or MOS if you really like the company and see a big potential in it. Therefore, I think it is important to see all of those ratios as individual numbers so you know exactly where it is failing your test...
Good to hear from you!
Ok, based on what you said, why doesn't STMP come back from the Stock Screener when I select "Rule #1" filter?
Its numbers look pretty good, don't they?
STMP has good numbers, no doubt about that!
I think, you may not see it right away in the Screener, because screener filter includes technical indicator filters and there is currently no "Buy" signal for this stock.
However, I would like to get to the bottom of it - would you mind emailing me a screenshot with your Screener filter settings? Please, either use "Contact Us" form or send it directly to support at stock2own.com
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