Skip to main content

Two custom screens yield picks from the oil patch

This post looks at the results of combining several of the stock screens that we ran this weekend at TradeRadar.

We executed the usual weekend Alert HQ process (read about this weeks results) and generated several lists of stocks based on our special screens including: Bollinger Band Breakouts, Trend Leaders and Cash Flow Kings (you can download these lists at the Trend Leaders page).

Trend Leaders represents a collection of stocks in strong up-trends. These stocks are registering strong signals using Aroon analysis, DMI and MACD. They are also above their 50-day exponential moving average. To obtain the list of Cash Flow Kings we calculate the free cash flow yield of all the stocks we scan and pick the ones whose yield is 50% or greater.

The "Leadership Screen"

All these screens generate big lists since we run them against essentially the entire stock market. Combining the Trend Leaders and the Cash Flow Kings results in what I think of as the "Leadership Screen" as it brings together those stocks with price momentum and exceptional cash flow yield.

With the market down, this list is quite reduced from what we saw last week - only two stocks made the grade. The list is as follows:

SymbolNameExchangeLast PriceMarket Cap
SUAISpecialty UnderwritersNGM3.6456.7M
WNRWESTERN REFINING
NYSE10.55721.4M

It seems refiners are doing well lately as last week we had Tesoro (TSO) on the list. This week it is Western Refining (WNR). Looking at this stock's financial ratios, one would not say this stock is particularly undervalued; however, the chart is extremely attractive (looking at it over a two period it looks like a nice bottom has formed and it has now jumped over its 200-day moving average) and it is comforting to see that it's one of our Cash Flow Kings.

Chart of WNR, 01-23-2009
Micro-cap stock Specialty Underwriters (SUAI) is the only repeat from last week and rounds out our short list. This brevity reflects the decline in the number of stocks on the Trend Leaders list as major stock averages fell anywhere from 2.1% to 4.7%

The "Contrarian Screen"

The next table shows the results of combining Cash Flow Kings with this week's Alert HQ SELL signals based on daily data. I think of this as the "contrarian screen" as it combines stocks with strong cash flow and falling prices. Here we have three stocks:

SymbolNameExchangeLast PriceMarket Cap
ICTGICT Group, Inc.NGM4.0664.6M
LIONFidelity SouthernNasdaqNM3.0028.5M
TGETGC Industries, Inc.NasdaqNM2.2138.4M

The best of this bunch is probably TGC Industries (TGE) which is in the oil and gas exploration services business. They have little debt and their financial ratios are all pretty favorable. This could be a nice longer-term value play. The chart below shows that the stock has fallen back to its 50-day moving average. It could get cheaper from here.

Chart of TGE, 01-23-2009
If you'd like to download the whole list with added fundamental data you can use this link. There could be a few stocks here that you will want to add to your watch list.

Disclosure: none

Comments

Denaliguide said…
I like WNR, having shown it up week after week, on technical screen after technical screen. The proprietary indicators I run on it show just such leadership, but I think a dip is possible.

http://denaliguidesummit.blogspot.com/

Good Job guys.

DG
Yes, a dip to slightly below the 200-day moving average is likely. As long as gasoline prices keep increasing and oil prices are contained, WNR should be be a real winner.

Popular posts from this blog

Brazil - in a bubble or on a roll?

A couple of years ago, no one recognized the real estate bubble even though it was under everyone's nose. Now, analysts and bloggers are seeing bubbles everywhere they look. One of them, they say is in Brazil whose Bovespa stock market index has doubled in the last 12 months. Does the bubble accusation hold water? I don't think so and here are 7 reasons why Brazil is by no means a bubble economy: Exports have held up over the past year thanks to demand from China for Brazil's soya exports and iron ore. This was helped by the the Brazilian government's drive to improve trade links with Asia and Africa. Export diversification, spurred by a more active trade policy and increased focus on "south-south" trade under current president Lula, helped mitigate the decline in demand from OECD (Organization for Economic Co-operation and Development) countries A "sensible" economic framework has been in place since the 1990's. This has included inflation

Thursday Bounce: Trend Busters, Swing Signals and Trend Leaders for July 9, 2009

This is a quick post to announce that we have published Thursday's Trend Leaders, Swing Signals and Trend Busters at Alert HQ . All are based on daily data. Today we have the following: 72 Swing Signals -- A couple of days ago we had 35 signals, today we have twice as many. Happily, we now have 65 BUY signals, a mere 4 SELL Signals plus 3 Strong BUYs. Whoo-hoo! 56 Trend Leaders , all in strong up-trends according to Aroon, MACD and DMI. There are 18 new stocks that made today's list and 60 that fell off Tuesday's list. 48 Trend Busters of which 5 are BUY signals and 43 are SELL signals The view from Alert HQ -- Talk about mixed signals. If you look at our Swing Signals list you would think the market was in the middle of a big bounce. BUY signals are swamping the SELL signals and we even have a few Strong BUYs. Yes, there's a good sprinkling of tech stocks and tech ETFs but the distribution is pretty broad-based with a good number of different sectors represented, eve

Unlock Stock Market Profits - Key #1

This is the first in an ongoing series of articles where I discuss what I feel are keys to successful investing. It is based on a post that provides a summary of the ten keys that individual investors should use to identify profitable stock trades. ( Click here to read the original post ) There are two basic steps to investing. First, you need to find stocks that seem to have some potential. Then you have to determine whether these stocks are actually good investments. There are many stocks that at first glance look interesting, but further research reveals that there are too many negatives to warrant taking a position. This first post in the series starts at the beginning: getting good investment ideas. Key #1: If something special is happening to a stock, it will be reflected in some kind of unusual activity in the markets. As individual investors, we will never be the first to know; however, unusual activity can be an early sign that allows us to follow the Wall Street professional