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Tuesday, March 21, 2017
Consumer and Services DART
This is a third occurrence of DART method producing a more or less homogeneous results.
The setting for this scan (FinViz link) follow most of DART v2 guidelines, except:
a. A 2% threshold for dividends is removed. Any divi is good enough.
b. Volume requirements are reduced to 300K. We've been trading on lower volumes for-awhile.
Out of 69 stocks - more than third are financials.
Some technology is still here, but it's a played out theme... back in 2016 (post link).
Over half of Best List can be characterized by Consumer driven theme, heavily skewed to Service sector.
From clothes, stores and recreation to business needs - Consumer & Services DART (C&S) got it all, plus more.
I took a liberty to add some building materials to compliment industrial supplies; also medical lab seemed like a good fit for Medicaid processor (MMS) and employment agency (RHI).
C&S has everything from exterminator (ROL) to elegant blue box (TIF)... like it's a reflection of our 'Consumer Service' economy... or something...
There are few stocks of this kind just beyond a threshold of this list, and if my suspicion is correct, there will be more to come. Initial selection isn't set in stone either - some of today's candidates will drop off the list.
C&S will run as a typical DART method experiment.
10 equal size positions, about 3300 each, with generous cash reserve - for 35K portfolio.
Standard DART rules apply.
I would run it with real money, but I don't have enough.
Besides, I trade DART v2, which will pick up some of these one way or another. (tips hat)
Browser window needs to be adjusted so these groups are seen 3 across. This way almost every row is united by common theme, with best candidate selected for portfolio.
FINviz Link for above stocks.
These stocks don't pay much dividends - I don't expect this portfolio to yield more that 1.3% (if that).
More than half grow their earnings at double-digit rate, but sales are harder to juice up (thou I hope it will improve).
A good third has no debt at-all.
IMNSHO, every one of these has a potential to go up by 50% or more in a year or less.
How they get there is another story.
This is a test!
No real money will be traded, but I will keep a virtual trading account with (near) real records.
This is a link for Market-Watch simulator game, for comparison and tracking purposes.
Please note that while Market-Watch seems to trade correctly, it's results are not entirely realistic.
Also, it does not account for dividends at-all.