11 rules value stocks system

7/24/2019 11 Rules Value Stocks System

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11-rule value system

In my online video course I talk about 21 trading systems that were tested on USstocks going back to 2000. Many of these systems are based on technical analysisbut one is value oriented and involves investing in comanies that meet 11fundamental rules. !hey are"

#ule 1" Market caitali$ation % 100 million

#ule 2" &'( ratio ) 1*

#ule +" 'arnings growth over the last , years % *

#ule " 1 year,2 week rice change % *

#ule ," /ividend yield between 2* and *

#ule " et margin last 12 months % ,*

#ule " #eturn on e3uity last 12 months % ,*

#ule " &' ) 20 and %,

#ule 4" &rice to sales % 0.,*

#ule 10" 5owest &' over last 12 months % ,

#ule 11" et Margin over last , years % +*

Four stocks that meet the rules

Copa Holdings (CPA)

The first stock that meets the rules is Copa Holdings, a South American airline that has an impressivehistory of improving earnings.

In fact, the company has grown PS at a rate of !".#$% over the past five years and is e&pected 'yanalysts to grow PS 'y!(.)%over the nextfive years.

This gives the stock a P* ratio of +ust $.)# while P is $.". The dividend yield is ).!#% and -is !(%.

Copa trades on the /0S as an A1- share and investors should note that capacity pro'lems in2ene3uela have had an impact on the company4s day to day 'usiness.

However, much of the 'ad news is surely priced in as the stock is down !5% year6to6date. 7urthermore,recent traffic reportsfor the airline have shown positive increases for the last two months.

It is true that 8organ Stanley recently downgraded the company 'ut I can only see value here and aconservative 1C7 valuation gives traders at least a 5$% margin of safety in my opinion.

For a more detailed write-up readers would be wise to take a look at Stephen Simpson's recentpiece.
http://seekingalpha.com/symbol/cpahttp://finviz.com/quote.ashx?t=cpahttp://finviz.com/quote.ashx?t=cpahttp://investor.shareholder.com/copa/releasedetail.cfm?ReleaseID=870804http://investor.shareholder.com/copa/releasedetail.cfm?ReleaseID=870804http://seekingalpha.com/article/2478885-copa-holdings-seeing-turbulence-but-still-a-top-notch-airlinehttp://seekingalpha.com/article/2478885-copa-holdings-seeing-turbulence-but-still-a-top-notch-airlinehttp://seekingalpha.com/article/2478885-copa-holdings-seeing-turbulence-but-still-a-top-notch-airlinehttp://finviz.com/quote.ashx?t=cpahttp://investor.shareholder.com/copa/releasedetail.cfm?ReleaseID=870804http://seekingalpha.com/article/2478885-copa-holdings-seeing-turbulence-but-still-a-top-notch-airlinehttp://seekingalpha.com/symbol/cpa


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Packaging Corporation of America (P9*)

Packaging Corporation of America is another company that meets the rules 'ased criteria and is in agood position to grow.

The stock has a P of ).$(, P* of $.(# and a healthy current ratio of !.:$. As well, the stock pays adividend of !.:$% with an - of );.!$%.

Packaging Corporation of America provides an essential service as the world moves further into thedigital age.


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Freeport-McMoRan Inc (7C=)

7reeport68c8o-an Inc. is a company that easily meets the rules criteria with a P of :.:" and a P*of $.)".

Current ratio is .:$, the dividend is ).5"% and this is a company that has 'een a'le to grow PS at arate of (."$% over the last five years.

7reeport has suffered over recent weeks owing to logistical pro'lems in Indonesia which impact thecompany4s day to day 'usiness and from the recent slump in copper prices.

une of thisyear.


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11 rules value stocks system

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