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Screening for Ideas

Traders Magazine, May 2002

Kathryn M. Welling

Inspired, in part, by Kevin Johnson's agreement that the market's mega-caps still look awfully vulnerable-and also by Steve Galbraith's message that sitting back and accepting a style straightjacket is, well, crazy - I did a little casting about for some fresh, or at least different, investment ideas. The pond I started trolling in contained almost 10,000 stocks, the entire AAII universe, and the methodology was nothing particularly fancy. But the results, displayed in the two charts across the bottom of this page, are reflective of a market whose character has maybe not changed as dramatically over the last 18 months as you might guess on first glance at Kevin's chart. First, a word or two on some of the stocks that didn't make either cut: the mega-caps. They didn't make the cut for the bottom chart, of "Over-Owned and Over-Valued" Stocks without Yields, not because they aren't richly priced, but because-in a nod to Steve's notion that, at this market juncture, companies actually showing some growth could become true values-I included a growth measure in the screens.

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