LAZY DOG Picks

[Deaddog]

This old dog is going to try and simplify Mr Market’s stock picking method.

I’m just too damn lazy to do 8 screens. To create the universe of 200 or so stocks that have strong price appreciation and earning growth I’m just going to use the available IBD screens.

I will build a data base of the stocks in those screens and cull anything that doesn’t have a composite rating, EPS rating or an RS of at least 85.

I am also going to use the screener at Finvis.com to look for stocks with the following:
Average volume over 200000; Trading 0 to 5% below the 52 week high.
ROE over 25%; Operating Margin over 10%.
EPS Growth for the year and quarter over quarter = positive.
Debt to equity less than 1.

If these stocks meet the IBD minimum requirements they will be added to the data base.

I’m not going to bother looking at any ratings besides IBD.
The KISS principle. The more information I have the more befuddled I get.

Now comes the question of which stock to buy.

At the end of the day..a stock trading at its high is a stock which has been "discovered" by the market. If fundamantals are very good and its valuation is not extended, its stock price should continue to climb at a rate faster than the over all market.

That's my story and I'm sticking to it.

That makes sense. I’ll be scanning the data base charts for stock breaking out of a base to new highs and stocks making new highs that have pulled back for 3 days or so.

Today’s scan turned up these breakouts:


CMI Cummins Inc
DD Dupont De Nemours & Co

[mrmarket]

awesome..this could end up being a great thread. Don't be humble, brag about your winners!

[Deaddog]

The Lazy Dog Portfolio will have a maximum of 5 stocks at any time.

The value of any stock purchase will be as close to 20% of the portfolio as I can get it.

I will cut my losers. ( I know, I know, losses are for losers.) But I have been known to be wrong before (just ask my wife) and I don’t want to tie up capital while I wait for a stock to recover. No hard stops but I will keep an eye on my non performers.

To start off today I bought TRMB @ 37.50
This stock broke out of a base on Nov 3 of above average volume.
I had a bid in yesterday that didn’t get filled but got some this morning.

[Eric]

Good fortune to ya, my fellow canuck.

EDIT: In what time frame are you going to initially fill up your 5 positions? Once a week? I was going to say if you were going to show your top 5 before making the final decision, you could name your dumps and obviously get some forum input (if that matters to you).

[Deaddog]

Good fortune to ya, my fellow canuck.

EDIT: In what time frame are you going to initially fill up your 5 positions? Once a week? I was going to say if you were going to show your top 5 before making the final decision, you could name your dumps and obviously get some forum input (if that matters to you).

I'll pick the stocks as they show up on my scans.
This morning nothing showed up.
I'm in no hurry the stock not only has to meet the fundies but also has to have the right technical criteria.

[mrmarket]

I'll pick the stocks as they show up on my scans.
This morning nothing showed up.
I'm in no hurry the stock not only has to meet the fundies but also has to have the right technical criteria.

Doggie,

This is great. I hope you stick around for a long time. Best of luck.

[Deaddog]

Doggie,

This is great. I hope you stick around for a long time. Best of luck.

I hope so too.

If I can figure out how to post a spreadsheet I'll do a weekly update when I'm around.

Every so often I get the urge to hit a golfball in anger so I leave the frozen north and head for the sunshine. Could be gone for a month or two and it depends on the kind of internet conection I have as to whether I am able to post.

[Deaddog]

LULU on my radar

Edit :
In the Lazy Dog Portfolio @ 47.97

[Deaddog]

Here is how I propose to show the Portfolio. Probably on the weekend


By deaddog01 at 2010-11-05

[Deaddog]

IBM, JOYG, BMC, SWI, MIPS

These 5 stocks showed up on tonights IBD screen "Financial Efficiency" based on ROE. They have been added to my data base. The other 15 stocks were already in the database.

[Deaddog]

ALB, ULTA, LYB, SPRD

Today’s IBD screen “Bolting RS Lines” put 4 new stocks in the data base.

[Deaddog]

AMT American Tower Corp showed up on my breakout scan this morning.

Added to the Lazy Dog portfolio at $52.79

[Deaddog]

[Deaddog]

A few stocks I will consider for Monday:

MELI: a Mr Market pick(so we know it’s solid) that has had a few bad days. Technically there is some resistance in the 60 area so price moving above 60 might trigger an entry.

ISLN: and CAVM:

These stocks from the fundamental data base; had 4 down days, opened on Friday lower than Thursdays close and then closed higher than their open and higher than Thursdays close. Looking for them to trade above the high of the low bar.

[Deaddog]

ISLN: Day late and a dollar short. Damn!!!
I looked at it on Friday and thought I would wait a day. Damn!!!

MELI: in the Lazy Dog Portfolio at 60.26

NUS: Showed up on this mornings scan and was added at 30.72

5 Stocks: That’s my limit for now.

Now comes the fun part; managing the portfolio. If a better stock comes along I’ll have to sell something to buy it. How to manage Fear & Greed.