Billyjoes Top 10 Cheap Stocks

[billyjoe]

Webs and Jiesen have convinced me there's money to be made in lower priced stocks if you pick wisely and set your stops. I've been running screens for a few hours and tabulated the results manually to come up with a top 10. I even took a peek at the charts. In some cases it came down to my evaluation such as what is better a ROE of 30 or a increase of sales by 100% last quarter. I tried to screen for the top 32 in each screen (the number of lines on my paper) but sometimes the numbers went bad after 10 or 15. Some of the screens : EPS , sales increase , ROE , Relative strength , Pre-tax Margin , Accumulation.

Stocks were rated as to how many screens they rated 1st or 2nd in the group. Some familiar names showed up along with a few I've never heard of. After narrowing it down to 10 , I checked Yahoo's top 10 which they get from a source that will remain unnamed. We have 2 picks in common. Their #1 and #2 are my #7 and #8. Checking Mr.Markets Veterans Day dump , I'm happy to find 4 of my 10 : AOB LPSN CBIZ and IFO . Spikes list of awesome bullish charts has MIG which is also on my list. I'll try to update this weekly. Please feel free to make comments or question any of the picks especially if you disagree. This is an experiment. Presently I don't own any of these.

Week Starting Nov. 14th 2005 Top 10 Low Priced Stocks

1. AOB 7.34 chinese herbal medicine health food supplements

2. LPSN 5.12 online software sales customer support

3. COGO 6.40 chinese manufacturer LED camera mobile handsets

4. HOM 5.76 home restoration after floods wind damage

5. IFO 9.59 wireless handsets U.S. and Mexico

6. GROW 7.39 investment advice record keeping mail distribution

7. ERS 9.74 semi finished aluminum products for auto and home appliances

8. ENG 6.19 engineering consulting elecrtrical power systems

9. CBIZ 6.17 accounting tax advice

10. MIG 6.04 property and casualty insurance


Spike, New-born , Runner feel free to technically analyze these.

billyjoe

[jiesen]

Excellent work, Billyjoe!

[Runner]

Interesting looking stocks Billyjoe!

[spikefader]

Good stuff. Another cool thread I'll be interested to see how it goes. What will be your entry exit rules?

At first glance, my favs are MIG HOM LPSN AOB in no particular order. As I posted before somewhere ERS weekly looks good short, as does GROW (upper weekly profit-taking tag last week) and IFO is a bubble waiting to top out and drop for a 4 correction, and maybe a 5th up to new highs or truncated that will fail and gap fill!

Good luck.

[Lyehopper]

Are any of these gonna be your contest pick?

[billyjoe]

Spike,
Entry/ exit rules will be kept simple. All will be purchased at opening Monday with 7% stop loss . If they drop out during the week a replacement will be chosen based on next screens run on Saturday. Some will return the next week , many will fade away forever. Trailing stops have not been determined yet. A stock that reaches $15 will be sold and enter the "cheap stock" hall of fame . I hope some make it. Will try to start each week with 10 stocks.

billyjoe

[billyjoe]

Allright IIC has 3 of my picks : AOB IFO and ERS on his MOMO list. This gives me some added validation that these are mostly not just pulled out of left field.
Well , maybe a couple are.

billyjoe

[RL]

Billy look what you started now SUPER I don't think I'll have time to shovel snow this year following you Lye and Spike.

[grebnet]

I'm always looking for new ideas.

Thanks for this list.
I have owned AOB since july 21 ( 1.98 ) and HOM since aug 16 (2.63) . I have successfully traded both several times .So I looked into the other 8 , my favorites are ENG and MIG . I may buy one /both this week,. Im trying to figure why ENG has dropped from 9 to current level in 2 mos. I welcome any thoughts or arguments against these choices.

Thanks again for a good thread.

[billyjoe]

Grebnet,
Two possible reasons for ENG's drop. On Oct.3rd when share price was around 8.25 they sold 2 million shares at 7.00 to an investment group to raise funds for future accuisitions and to eliminate interest payment on old debt. At the same time the CEO , Chairman , and other top officials also sold 960,000 shares privately for 7.00 .They agreed not to sell any more shares for atleast 90 days. These sales amounted to over 11% of their total market cap. Also , a week earlier some of their office facilities were severely damaged in Texas by Hurricane Rita or was it Katrina. They did have a good earnings report since , but shares have yet to recover. How did you happen to spot both HOM and AOB so early ?

billyjoe

[skiracer]

Thanks for this list.
I have owned AOB since july 21 ( 1.98 ) and HOM since aug 16 (2.63) . I have successfully traded both several times .So I looked into the other 8 , my favorites are ENG and MIG . I may buy one /both this week,. Im trying to figure why ENG has dropped from 9 to current level in 2 mos. I welcome any thoughts or arguments against these choices.

Thanks again for a good thread.

Grebnet,
Two beautiful plays and exceptional gains on top of that. I would be truly interested in what brought you to both of them initially. Again two beautiful plays.

[IIC]

Allright IIC has 3 of my picks : AOB IFO and ERS on his MOMO list. This gives me some added validation that these are mostly not just pulled out of left field.
Well , maybe a couple are.

billyjoe

AOB...Depends on the report...Same w/ HOM...I will wait...IIC

[grebnet]

re picks

Billyjoe- thanks for the update on ENG......so that 2 mill shs will be dilutive to next qtrs earnings given that the sale occured on Oct 3rd and last qtr ended in Sept. So unkess income picks up dramatically, we may see a drop in earnings/shr this qtr........will keep looking need to see an indication of guidance, will have to check over last fin. statement

re AOB and HOM....I run screens daily and look into a lot of stocks to see what fits my style.
Here is what else Im holding (avg cost)

None of these will ever be Mr Market picks...

APLX (6.42)
EFJI (8.56)
EZEN (2.04)
GNTA (1.63)
GW (7.64)
HQSM (.26) i got a lot of this one
IO (7.70)
MCZ (1.45) ouch
NWD (1.83)
TGB (.95)
YHGG (3.93)

I like em all ...but IO has me a little nervous. MCZ... might as well wait for the new X-Box at this point to see if things pick up


just sold PRFT and RWC on Fri. may reenter both if pull back

[Websman]

Thanks for this list.
I have owned AOB since july 21 ( 1.98 ) and HOM since aug 16 (2.63) . I have successfully traded both several times .So I looked into the other 8 , my favorites are ENG and MIG . I may buy one /both this week,. Im trying to figure why ENG has dropped from 9 to current level in 2 mos. I welcome any thoughts or arguments against these choices.

Thanks again for a good thread.

Nice job!

You may become a legend around here with picks like that.

[billyjoe]

Three report earnings today : AOB COGO HOM Expect at least one to drop off list fast with a 7% stop. Opening prices in a few minutes.

billyjoe