Posted by: beautifool December 3, 2013
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@lopchandai and some others
What method do you use to find stocks that interest you? I normally use stock screener and use low P/E ratio (not more than 7) and price to book in the range of 0.2 to 0.7. All these small banks fall under this category. You can use google screener and play with it.
Recently, I have started using another method which is not based on screener but rather google alerts. If you read press release of different companies, most of them use the same language. So I thought why not put some of those "key words" and use google alerts. Here are some of the google alerts I've used..
1. "announces special dividend" - With this you'll receive in your gmail of all the companies that are paying special dividend. If you're the first to find this news, chances are you'll get the special dividend and make some % gain in a quick flip.
2. Shareholder equity increase - when you receive such an alert, chances are you're finding a good company. When shareholder equity increases, the company is doing what it is supposed to do. Make shareholders happy.
3. tangible book value increase - Same thing as above.
4. backlog increase - Normally a very good sign when backlog increases.
5. posted record profit - Same thing.
6. continued growth in adjusted earnings -
I've added few more alerts..
7. Receives FDA Approval
8. Receives FDA orphan-drug designation
Idea is to read PR of different companies and choose from those lines the key sentences that can be used by other companies as well who are performing well.
Few months ago, I bought 10 shares of a company called GNRC (Generac Holdings Inc) based on the google alert #6 I received. I knew nothing about the company other than it makes generators. I had bought it around 42 dollars and today it is 52 dollars. I still don't know anything much about the company but google alert did work. The alert came from their PR of earlier quarter.
If you use any interesting tools, please don't hesitate to share.