Looking to close out my Wal-Mart trade today – if I can close it for $50.00, will pull the trigger – lock in the $900.00 profit (Note: TD Ameritrade does not charge transaction costs for options trades under .05 per option).
Here are the results from the 52 Week Low Screen:
| Name | Ticker | Price | Fair Value | Margin of Safety | Yield % | MOS % |
| Gap Inc | GPS | $25.02 | $45.00 | $19.98 | 3.6% | 44.4% |
| Suburban Propane Partners LP | SPH | 30.17 | 39 | $8.83 | 11.7% | 22.6% |
| Rockwell Automation Inc | ROK | $103.06 | $120.00 | $16.94 | 2.5% | 14.1% |
Tempted to take a flyer on the GAP after my Wal-Mart trade closes. Also, take a look at the yield on Suburban Propane Partners! Propane usage is in secular decline, so this is a classic value trap – but 11.7% – that is $887.50 every 3 Months on a $30,000 investment.
Based on the following screen:
- Morningstar analysis available.
- Less than 5% above its 52 week low.
- Greater than or equal to Narrow moat.
- Free cash flow/enterprise value greater than 5% (should be above what the 10 Year Treasury Bond is yielding).
- Financial Health Grade >= B.
- Forward P/E <= 20.
- Stock Industry not = Asset Management
- Dividend Yield % >= 2.5
- For candidates that have passed all the filters, review the individual stocks Return on Invested Capital (ROIC) for the previous 10 years to select the best long term candidates.
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