Rule #1 Companies to Study

[rk4353w]

If anyone has found any Rule #1 companies which are currently in or close to their MOS's please can you share them.

I have found the following, they are being offered up as ideas for study only, and in no way should be regarded as buy recomendations:

CHS, BBY, MXIM, BBBY, SYK

I will post more ideas as I find them.

I have done well following NAIC's investment principles, if anyones interested check out there site at www.better-investing.org
They use a Stock Selection Guide to find stocks to study. This form has been in use since the 50's. Its generation is all computerized now, using their software, which is very reasonably priced. :)

[robirch]

I would add UNH. As soon as they get past the SEC investigation, the stock should zoom. I used to be one of their administrators and even though I have not worked for or with them for a number of years, I still believe that their approach to healthcare is the best of the managed health companies (moat). Additionally, they have an extremely heavy enrollment with the new Medicare Drug benefit.

Agree with BBY as it is by far the best electronic store nationally.

[rk4353w]

I recently bought and sold UNH, losing money on it.
I was disgusted by the controversy surrounding the stock options granted to the CEO, which apparently are now worth some 1+ billion dollars.
I sold as soon as I heard this. There was also some concern regarding the timing of how these options were priced. Ouch....

Maybe TEVA is worthy of further study? The quantitive side looks acceptable, however, this is no good unless we're comfortable without the qualitive side of the equation.

Good luck, and Better Investing! :)

[SteveO]

According to my calculations, both BBY and UNH are still trading above their MOS. However, I'd like to add the following as stocks to watch:
NBR (trading at 32% of MOS)
AKAM (50%)
FCX (53%)
PTEN (93%)
YHOO (66%)

SteveO

[mcgelligot]

ASVI is trading well bellow MOS (28.00 by my calculations). The stock has been in free fall, for no apparent reason for about a month, bringing it from 35.00 down to 20.00.

I violated rule one, to my regret, and bought in at 22.88, thinking it was the bottom. I should learn to wait for the arrows. I just hate missing all that potential between the bottom and when the signals say it's right to buy. Got my fingers burned, which will hopefully keep me away from the stove in the future.

That being said, I intend jumping in again as soon as the indicators show a positive and confirmed uptrend. I think the company has good management. It has meaning in that they are the best makers of rubber tracked vehicles in the world. They have excellent growth in the past and look to do the same in future. I recommend a look, but of course I am no professional analyst so make your own judgements and do your own research.

[colt45]

Originally Posted by SteveO

According to my calculations, both BBY and UNH are still trading above their MOS. However, I'd like to add the following as stocks to watch:
NBR (trading at 32% of MOS)
AKAM (50%)
FCX (53%)
PTEN (93%)
YHOO (66%)

SteveO

Hey Steve,

I'm just a newbie and have only read Rule #1 once so far, but I think I got enough out of the book to see that all of these companies break Rule #1 rules all over the place. Sorry to be so blunt, but maybe you should re-evaluate???

[jmbreci]

Originally Posted by colt45

Hey Steve,

I'm just a newbie and have only read Rule #1 once so far, but I think I got enough out of the book to see that all of these companies break Rule #1 rules all over the place. Sorry to be so blunt, but maybe you should re-evaluate???

Hey Colt,

Maybe you should elaborate a little bit more before just stating that and leaving it at that. PTEN looks quite promising just by the #'s and Yahoo, once by this year, looks decent as well. I have not looked at the other. I know that I looked at PTENs numbers extensively and I think, once they hit an uptick, that they currently are a buy.

[oly]

Here are a few companies to look at :
CECO, UPL, INFY, SAY, CTSH, BSTE, CLE, ASVI

I got them off of the MSN search as explained on Phil's site. They all are currently at or under MOS. I plugged them into Andy's fundamental analysis form to verify that. Two problems I found with several of them are: they don't have a full 10 years worth of numbers and they don't pass all of the 4 M's (Meaning) for me... Maybe they will work for some of you.

I am still in the paper trading stage, so maybe I will plugged them into the simulator when the tools say so just for fun!!!

Terry

[colt45]

Originally Posted by jmbreci

Hey Colt,

Maybe you should elaborate a little bit more before just stating that and leaving it at that. PTEN looks quite promising just by the #'s and Yahoo, once by this year, looks decent as well. I have not looked at the other. I know that I looked at PTENs numbers extensively and I think, once they hit an uptick, that they currently are a buy.

Sorry, I probably should have elaborated, cuz I thought someone might call me on it. So, just at a first glance:

with PTEN, they appear to have some impressive numbers but they don't have a 10 yr history and what's their moat?
with YHOO, their 5 yr ROIC is 3.6% and the 10 yr is -6.1%!!!

STRICKLY speaking "Rule #1 investing", they fail. It's my opinion that in a Rule #1 investment forum, you should be discussing Rule #1 businesses, that's why I came here.

So did you guys read the book?

[jmbreci]

PTEN - http://moneycentral.msn.com/investor...N&stmtView=Ann

http://moneycentral.msn.com/investor...N&stmtView=Ann

What's not 10 years about that? Moat - how about 403 drilling rigs at the end of 2005, for both oil and natural gas. I still believe we need both of them now and for the foreseeable future.

Please post your correlation numbers on Yahoo, because just throwing them out does me no good and I cannot validate or see how you came up with those at all.

BTW, the "strickly speaking" line seems rude and inconsiderate. If you read the book, you know that while he lays everything out, he does mention that you do not necessarily throw something out because it misses one mark by a sliver.