Zacks.com Featured Expert Kevin Matras Highlights the Following Stocks: ElkCorp, Gildan Activewear, Inc., and POSCO.CHICAGO -- Zacks.com releases it's exclusive Screen of the Week report that highlights another successful stock picking strategy developed with their Research Wizard software. This week, Kevin Matras looks at Cash Flows (and increasing Cash Flows) for a winning stock picking strategy. Stocks in this week's screen are: ElkCorp (NYSE NYSE See: New York Stock Exchange :ELK), Gildan Activewear Gildan Activewear TSX: GIL NYSE: GIL is a Canadian clothing company headquartered in Montreal, Quebec. The company is the subject of criticism by the Maquila Solidarity Network, especially over recent plant closures[1]. References 1. , Inc (NYSE:GIL GIL Global Interpreter Lock (to protect Python objects from being modified from multiple threads at once) GIL Gerenciador de Informações Locais (Brasil) ), and POSCO POSCO Pohang Iron & Steel Co, Ltd (NYSE:PKX). Click here for the full story exclusively on Zacks.com: http://at.zacks.com/?id=109 Screen of the Week written by Kevin Matras of Zacks Investment Research Zacks Investment Research A firm that compiles earnings estimates and brokerage firm investment recommendations for thousands of publicly traded firms. : "Increasing Cash Flows" In this week's screen, Kevin Matras focuses on another winning screening strategy that is both easy to build and easy to use with the Research Wizard program. This one uses Cash Flows (and identifies an increase in Cash Flows) as one of the main components in the strategy. Cash Flow is considered, by some analysts, to be a company's most important financial barometer. Since Cash Flow pays the bills and keeps the company operating, many look to it as the best measure of a business' profits. The parameters to this screen are as follows; Zacks Rank equal to 1 (The Zacks Rank has proven to be one of the best, if not THE BEST rating system out there. Only stocks with a 'Strong Buy' from Zacks are included.) Average Broker Rating equal to 1 (Since broker ratings are typically skewed skewed curve of a usually unimodal distribution with one tail drawn out more than the other and the median will lie above or below the mean. skewed Epidemiology adjective Referring to an asymmetrical distribution of a population or of data wildly to 'Buy' and 'Strong Buy', Kevin decided to cancel out Verb 1. cancel out - wipe out the effect of something; "The new tax effectively cancels out my raise"; "The `A' will cancel out the `C' on your record" wipe out any company where the brokers aren't fully on board.) Current Cash Flow greater than or equal to 5 Year Avg. Cash Flow ($/share) (This will produce only those stocks that are exhibiting Stable or Increasing Cash Flows with respect to their 5 Year Avg. Cash Flow numbers.) And all of the stocks have to be trading at greater than or equal to $5 share. Results: Kevin ran a series of tests over each of the last 3 years (2002, 2003 and 2004). Each test used a four-week rebalancing Rebalancing The process of realigning the weightings of one's portfolio of assets. Notes: For example, if your portfolio's proportion of stock has grown too large for your intended assets weightings and risk tolerance, you might rebalance by selling some stock and putting period and ea. run was rebalanced over a different set of four-week periods to eliminate coincidental co·in·ci·den·tal adj. 1. Occurring as or resulting from coincidence. 2. Happening or existing at the same time. co·in performance and to verify robustness. In 2002, this strategy showed an average annualized annualized Of or relating to a variable that has been mathematically converted to a yearly rate. Inflation and interest rates are generally annualized since it is on this basis that these two variables are ordinarily stated and compared. gross return of over 44% with an average win ratio (winning periods vs. total periods) of 68%. In 2003, it showed an average annualized gross return of over 62% with an 80% win ratio. And in 2004, the average annualized gross return was over 22% with a 73% win ratio. This screen typically produces on average of 7-9 stocks per run. This week, there are 10. Here's 3 from that list; ELK ElkCorp GIL Gildan Activewear, Inc. PKX POSCO Get the rest of the stocks on this list and start using this winning strategy or pick from a list of other winning strategies that come loaded with the Research Wizard. Sign up now for your free trial to the Research Wizard and start making better decisions today. http://at.zacks.com/?id=111 About Screen of the Week Zacks.com created the first and best screening system on the web earning the distinction as the "#1 site for screening stocks" by Money Magazine. But powerful screening tools is just the start. That is why Zacks created the Screen of the Week to highlight profitable stock picking strategies that investors can actively use. Each week, Zacks Profit from the Pros free email newsletter shares a new screening strategy. Learn more about it here http://at.zacks.com/?id=112 About Zacks Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 to compile To translate a program written in a high-level programming language into machine language. See compiler. , analyze, and distribute investment research to both institutional and individual investors. The guiding principle behind Zacks work is the belief that investment experts, such as brokerage analysts and investment newsletter writers, have superior knowledge about how to invest successfully. The goal is to unlock these pros' profitable insights for individual investors hard-pressed to find this valuable information in one source. A free subscription to "Profit from the Pros" weekly e-mail newsletter provides the best way to use these experts' insights for more profitable investing. Register for a free subscription to the Profit from the Pros newsletter at http://at.zacks.com/?id=113 Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates. Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation solicitation In criminal law, the act of asking, inducing, or directing someone to commit a crime. The person soliciting another becomes an accomplice to the crime. The term also refers to the act of obtaining bribes, as well as to the crime of a prostitute who offers sexual to buy or sell any security. |
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