I basically log new 52 week lows into a googledocs template as a starting point for additional research.
None of the stocks logged into this spreadsheet should be construed (or confused) as buy/sell recommendations. These are preliminary observations only on candidates for further research.
What am I looking for?
- High pre-tax cap rate (in excess of 15%). I measure pre-tax cap rate as EBIT / EV
- Preferably, excess cash. I measure excess cash by taking the difference between mkt cap and EV.
- Very preferably, micro-caps (i.e., caps < $200M).
I don't automatically add anything making a new 52 week low to the spreadsheet. I do a quick analysis of free cash flow, margins, leverage, and valuation.
Happy huntimg. Hope the list helps anyone interested in their search for ideas.