As requested by a stingy reader, I will post monthly stock picks based on Benjamin Graham stock screener criteria.

Here is the stock screen criteria used:

• P/E Ratio < 15
• P/B Ratio < 1.5
• Book Value > 0.01
• Current Ratio > 2
• Annual EPS Growth (5-yr avg) > 3%
• 5-Year Dividend Grwoth > 0%
• 5-Year P/E Low > 0.01
• 1-Year Revenue > $400 Million

Here are the results:

OSG - Overseas Shipholding Group Inc.

BL - Blair Corporation

SUHJY - Sun Hung Kai Properties Ltd

ROCK - Gibralter Industries Inc.

This screen can be EASILY replicated using MSN’s free stock sceener. The Graham strategy is to purchase deeply discounted strong companies but sell them when you reach a 50% profit or by the end of the year.

Be wary though, no matter what stocks that a stock screener spits out, you need to do your own due diligence on the companies before purchasing.

Happy Investing!

Be Wise… and Be Stingy..

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Hello everyone!

We apologize for the lack of posting as of late, our personal lives have become very busy. Anyways, the AOL Stock Challenge has ended (7 weeks), and here are the results.

We started off with $100k, and we ended up with $103180 which is approximately a 3% return in 7 weeks with a rank of 137 out of 1239 contestants. Not too bad considering that we used technical analysis only. The winner had a whopping final portfolio value of $161000!

We must admit that we started to slack off near the end of the round and we should have sold off some losers before they turn the turn for the worse, like FCP and AVN.UN.

Our biggest winners were APOL, WAG, and NGX (already sold off).

Here was our final portfolio holdings:

Standings (rank and portfolio value calculated
since portfolio creation to last update)

Portfolio Details

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Mr. Norman Rothery at the Canadian Moneysaver magazine uses the Graham stock criteria to screen for stocks on a yearly basis. For those of you who don’t know who Benjamin Graham is, he is also known as the “Father of Value Investing”. He is the mentor of the greatest investor of all time, Warren Buffet.

Anyways, back on point, Rothery started publishing the stock screen and results in the year 2000. Below is a chart of the results thus far:

If you were to take the stock picks from Mr. Rothery/ Graham since the year 2000, you would have a 350% return. Not too shabby compared to the S&P return of 1%.

Here is the stock screen criteria used:

• P/E Ratio < 15
• P/B Ratio < 1.5
• Book Value > 0.01
• Current Ratio > 2
• Annual EPS Growth (5-yr avg) > 3%
• 5-Year Dividend Grwoth > 0%
• 5-Year P/E Low > 0.01
• 1-Year Revenue > $400 Million

Here are the results for of the screen (Sept 27, 2006):

Blair (BL)

Briggs & Stratton (BGG)

Seaboard(SEB)

Media General (MEG)

Teekay Shipping (TK)

Overseas Shipholding (OSG)

Gibralter Industries (ROCK)

Schnitzer Steel (SCHN)

This screen can be EASILY replicated using MSN’s free stock sceener. The Graham strategy is to purchase deeply discounted strong companies but sell them when you reach a 50% profit or by the end of the year.

Be wary though, no matter what stocks that a stock screener spits out, you need to do your own due diligence on the companies before purchasing.

Happy Investing!

Be Wise… and Be Stingy..

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