HFWR Value Portfolio

[HFWR]

Subtitle: Dart-Throwing With Stock-screener
Sub-subtitle: Slow Day at the Silicon Mine...

As noted above, I am stuck at w*** on Labor Day (ironic, isn't it?) with not much to do. So I've [-]pulled some stock symbols out of my ass[/-] [-]carefully constructed[/-] created a portfolio of, for lack of a better term, "value" stocks, based strictly on the output of the Yahoo Stock Screener, using the following criterii:

Market cap => $10B
P/E <= 10
PEG => 2
P/B <= 2

This gave me a list of five stocks: AZ, E, NTT, APC, and IP.

I then built a spreadsheet, to devise three portfolios, each based on a different weighting method: price weighting (9/1 price), cap weighting, and P/E weighting (inverse).

Then, for [-]shits and grins[/-] kicks, I created portfolios that can be tracked by anyone bored enough to do so:

http://www.bloomberg.com/apps/subscriber/webport

userid: erorg_portfolio
pw: portfolio

 

[Dawg52]

Reminds me of when I got bored at work. I studied different retirement portfolios only using mutual funds and ETF's.

How much longer before you retire?

 

[HFWR]

Reminds me of when I got bored at work. I studied different retirement portfolios only using mutual funds and ETF's.

How much longer before you retire?

TBD...

 

[HFWR]

I suppose we need a benchmark for comparison; how about VTV?

 

[twaddle]

... based strictly on the output of the Yahoo Stock Screener

Danger, Will Robinson!

Yahoo sometimes gets the number wrong. I chose E in another thread, but it turns out Yahoo is way off on market cap (and P/B, etc). I noticed a few of your other picks were ADRs, so I wouldn't be surprised if Yahoo was wrong on a few of them.

 

[HFWR]

Danger, Will Robinson!

Yahoo sometimes gets the number wrong. I chose E in another thread, but it turns out Yahoo is way off on market cap (and P/B, etc). I noticed a few of your other picks were ADRs, so I wouldn't be surprised if Yahoo was wrong on a few of them.

I concur, but I'd opine that no "free" stock screener can be fully trusted...

Edit/update: I was going to compare screens from different sources, but excite no longer has a screener, bloomburg has no screener, and CNBC's screener doesn't offer PEG ratio as a criteria...

Since the username and pw are known, anyone who wants to add a portfolio can do so.

 

[HFWR]

I've decided to alter my portfolio to match Greg's model portfolio at http://www.early-retirement.org/forums/f44/gentlemens-stock-picking-club-29582.html...

So to keep it simple: ten large cap stocks at 10K hypothetical dollars each=$100k total

I've decided I don't really like PEG ratio, since it uses "forward earnings", a number even [-]a monkey[/-] an analyst could love. Plus, on reflection, I think I would have changed the PEG to <= 1, rather than => 2...

I'm still using the mechanical [-]monkey[/-] method, i.e. Yahoo stock screener, warts and all. Mkt cap => 50B, P/E <= 10, P/B <= 2, which, oddly enough, gives me ten stocks exactly...

 

[HFWR]

Up 1.77% first day...

 

[Martha]

Up 1.77% first day...

Sell!

 

[HFWR]

One month results:

Price-weighting (equal # shares of each to = $100k): +4.06%
Cap-weighting: +4.64%
P/E-weighting: +6.5%
Equal-weighting ($10,000 each): +4.39%

VTV: +3.5%

 

[Webzter]

AZ is an ADR. Does that affect how something like Yahoo spits out p/e? I wouldn't think so, but just wondering.

I should have bought at the start of the month... employee purchase price is 25% off.

 

[HFWR]

AZ is an ADR. Does that affect how something like Yahoo spits out p/e? I wouldn't think so, but just wondering.

I should have bought at the start of the month... employee purchase price is 25% off.

Not sure, but see [-]Wab's[/-] Twaddle's caveat about Yahoo...

 

[twaddle]

Yahoo seems to be OK wrt AZ. On a few other ADR's, they blow the number of shares outstanding, which throws off their market cap, P/E, and P/B calculations.