Week 6, 2018 – Top Stock Bargains Watch List

Author: AsgeirTHE TOP BARGAINS WATCH LIST FOR THIS WEEK (WEEK 6, 2018) IS NOW AVAILABLE! So far this year, the list has been updated every second week, which is sufficient in my opinion when it comes to a list for monitoring stocks to invest in. As before, calculations and short explanations are included to make it understandable. Anyway, please leave a question in the comments field area at the bottom if anything is unclear, or if you just simply want to discuss a related issue.

To repeat myself, it is not very complicated, I believe in keeping it simple, and I believe that sticking to simple, easy-to-follow investing principles is the big key to succeed over time in the markets.

Rough markets these days.. Has the market reached the top, and is set for a solid turn-down? It is not my intention to predict anything, that would be speculation and not investing. I am a fan of value investing, hard facts, and not a fan of wannabe-oracles. In these volatile periods, maybe it is more important than ever not to be disillusioned and emotionally involved in the ups and downs. But instead let the real facts and figures guide you, e.g. by using a list like this. You are welcome to read on.. I hope you will enjoy and that you will have great benefit of the scores!

Explanation of the results and how the Market Adjusted Total Score (MATS) works

All companies listed here are the stocks that got an above average MATS (Market Adjusted Total Score). You can read more about how the numbers and scores are calculated and how the model works here: “The Market Adjusted Total Score – MATS”. First I ran the Magic Formula Investing screener to pick the 50 top companies with a minimum market cap of 300 Mill. USD. I intentionally excluded companies above 8.000 Mill USD. This week the screener provided a portfolio of 35 companies.

The average Market Adjusted Total Score (MATS) for yesterday (February 6th) was 87,8..

34 of the companies from the screener all together gave an average MATS score of 87,8, more than three points up since last update two weeks ago (19th of January, average score: 84,3). One company is not included in the average score, which is Unisys since this stock got an extremely high score of 742, and this would have given an unbalanced average score of 106,5, and six of the top bargain stocks would have been excluded. The companies that ended up with higher than average score, are the top bargain companies listed in the table below.

How is it possible for Unisys Corp. (NYSE: UIS) to get an extreme score of 742,3? Unisys has a Net Working Capital that exceeds its market cap value with 642 % (NWC: 3 128 Mill. USD / MCV: 421 Mill. USD). This results in a “Financial Score” of 698,1  in the table below. The stock quote has a 65 % discount from its highest level in the last three years, and this increases the score furthermore. There might be plenty of reasons why Unisys can have such a high NWC, usually this is definitely positive, without doubt, but on the other hand it most likely does not mean that the company is three times “better” than the next on the list which gets 216,9 points…

Here is the list – with calculations and scores: 

(You will find a further explanation of the parameters just below the table.)

Company High last 3 Yrs Current Price Dividend paid Percent of High Added Value (if >50 % discount from High last 3 Years) Financial Score Total Score S&P, Percent of High Market Discount

Market Adjusted Total Score

UIS 23,77 8,35 35,1 14,9 698,1 720,4 93,8 43,8

742,3

2018-02-06
TVTY 48,05 37 77,0 208,5 208,5 93,8 16,8

216,9

2018-02-06
GME 47,44 16,14 0,38 34,8 15,2 155,6 178,4 93,8 43,8

200,3

2018-02-06
PDLI 7,29 2,55 35,0 15,0 118,7 141,2 93,8 43,8

163,1

2018-02-06
EVC 9,26 6,5 0,05 70,7 133,8 133,8 93,8 23,1

145,3

2018-02-06
CJREF 17,55 6,54 0,08 37,7 12,3 85,6 104,0 93,8 43,8

125,9

2018-02-06
AMAG 75,8 13,57 17,9 32,1 51,6 99,7 93,8 43,8

121,6

2018-02-06
AGX 74,5 40,35 54,2 86,1 86,1 93,8 39,6

105,9

2018-02-06
AMCX 85,78 51,06 59,5 88,7 88,7 93,8 34,3

105,8

2018-02-06
HRB 37,26 25,17 0,24 68,2 87,2 87,2 93,8 25,6

100,0

2018-02-06
SYNT 52,59 21,36 40,6 9,4 61,8 75,9 93,8 43,8

97,8

2018-02-06
CNCE 29,05 20,29 69,8 85,3 85,3 93,8 24,0

97,3

2018-02-06
EGOV 25,35 13 0,08 51,6 72,3 72,3 93,8 42,2

93,4

2018-02-06
S&P 500 2873 2695 93,8 93,8 6,2 2018-02-06

*Added Value: If >50 % discount from the highest price last 3 years, a factor of 1,5 is added to this difference into the “Total Score” area.*Market Discount: If the stock has fallen (or risen) more than the market, a factor of 0,5 is used into the “Market Adjusted Total Score” area to adjust for the difference.

*MATS: Market Adjusted Total Score. A score which aims to discover stocks with the best combination of financial performance and historical prices.

What changes are there in the Top Bargains Watch List since last time?

One company is out of the list this week, Pitney Bowes Inc. (NYSE: PBI). The reason is that it wasn’t among the stocks in the Greenblatt screener (the Magic Formula Investing Stock screener mentioned above), which makes the ground foundation of the calculations I make. Unisys got into the list this week by the same reason, it was among the companies that were included in the screener.

Unisys (UIS), Pitney Bowes (PBI)

Disclaimer: The Market Adjusted Total Score (MATS) calculated above, is only a result of my own calculations, and must not be interpreted as “market signals” in any way. I am not an investment advisor. Even though I do my best to avoid mistakes, wrong calculations may occur.

Is it possible to get a MATS calculation for other stocks too?

Yes, it certainly is! For any company in the US Stock Markets (or any other leading Stock Exchange in the world) it is possible to make a calculation of the Market Adjusted Total Score. As long as the company’s financial results are made available, I will be able to make this for you. If you read this, and you have not received a MATS calculation of your favourite stocks before, you can have one calculation FOR FREE! Just make a comment below of which company/stock you need to get a MATS score of, and you will receive this within a day or two. Or send a request to my e-mail at support@stockbargains.net.

The price of further MATS calculations (Market Adjusted Total Score):

  •  10 USD per calculation
  • 25 USD for three stocks (or the last available quarter plus the two last years for one stock).
  • 49 USD for one stock compared to five of its competitors (picked by you). MATS Scores are calculated for all six stocks. For even more relevant comparison, MATS Score of the stock is also adjusted to the average market discount of the five other stocks (in replacement of the adjustment vs the S&P 500 Index).