Saturday, May 27, 2006

I Want a New Stock

I Want a New Drug Stock

I will likely be adding another stock by Mid-June. It is never too early to begin considering the candidates. One point about MFI, the lists really don’t change very quickly. Only when either new earnings data comes out or if the stock goes on a spurt.

I did a pull of stocks from the website which gave me 50 stocks to think about. I quickly pared that list down based on having already nixed certain stocks and the other stocks were nixed as I want to try to be diversified. Here are the current candidates:


Symbol

Trade

Market Cap

EBITDA

EPS (ttm)

OVTI

28.58

1.52B

110.44M

1.48

ASEI

60.85

497.69M

49.81M

3.27

FTD

12.95

362.30M

65.96M

0.74

KSWS

27.20

933.29M

105.00M

2.10

FDG

34.7236

5.10B

877.12M

5.808

VTRU

38.35

376.83M

94.40M

2.45

RAIL

63.12

793.42M

113.10M

5.18

AGYS

16.47

502.73M

59.83M

0.64

KG

17.73

4.29B

782.87M

0.41

ORCT

12.95

199.25M

22.02M

1.44

What am I looking for? I think that ideally you want stocks that have some pricing power. I also want stocks that have increasing earnings and revenues. All else being equal, I suppose I would rather have a small cap (under $1b) than a large cap. A strong balance sheet would be a positive as well. Finally, I would want to read the most recent news and make sure there aren’t any death knells out there.

During the upcoming week, I'll try and comment a bit on each candidate and see if I can convince myself of the best buy.

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