Posted by shinado > 2015-11-29 01:26 | Report Abuse

I like how you try to develop a point system for your stock selection. It's interesting. But I must say, sometimes for NTA/price it makes no sense.

For example, take Nestle.

Last Q report shows that NTA is at RM3.45. Trading price is RM73.60. But does it make it a bad stock? Not really. And it can be the other way round too. Some companies have high NTA/price, but fundamentally it's a bad stock.

I don't know how you intend to make changes for it. But from my point of view, the stocks you have selected based on this system are mostly good stocks. Congrats!

Posted by shinado > 2015-11-29 01:51 | Report Abuse

On another note, stock screeners usually have limited data that you can extract. But it also depends on what criteria you look for.

Some noteable criteria that most stock screener are lacking:

1. Return on Invested Capital (ROIC)
2. Free Cash Flow (FCF)
3. Return on Asset (ROA)
4. Cash Return on Invested Capital (CROIC)
5. Earnings Before Interest & Taxes over Enterprise Value (EBIT/EV)
6. Profit Margins (Gross profit, net profit etc)
7. Other financial ratios such as debt ratio, current ratio, dividend payout ratio etc

You may or may not use these for selection criteria but ultimately it depends on what you are really looking for. I think you have a good start.