by Shiv Kapoor
Quant & AOM Editor
Gurgaon, India (DYDD)
Neuro Screener 1/14/2013
I am searching for a stock, listed in US and of US incorporation, with a market capitalization of over $20 billion.
I used the NeuroScreener to produce a list of stocks of US incorporation with market capitalization of over $20 billion having a NeuroScore of between 75 and 85.
This is the list: BLK ABT QCOM SYK MA VIAB JPM HAL GOOG.
It is earnings season; a risky time to trade. Expectations get built into the run up to earnings; meeting expectations is not enough for further price gains. So I want to narrow down the selection to stocks where expectations are low. What I am looking for is
reasonable valuations with mediocre to weak technical.
So delving in a bit deeper, I look at NeuroQuote and find:
- BLK: Valuation is appealing, but the technical picture is too strong; suggesting much of the good news is priced.
- ABT: Valuation is appealing, technical are mediocre. But on account of the recent spin off of Abbvie, I’d shy away from this company until there is a better track on how the stand alone pharmaceutical business will perform.
- QCOM: Decent valuation, with mediocre technical conditions.
- SYK: Valuation appealing, but the technical picture is too strong; suggesting much of the good news is priced.
- MA: Valuation is not at all appealing, while the technical picture is too strong.
- VIAB: Valuation is appealing, but the technical picture is strong.
- JPM: Valuation is appealing, but the technical picture is too strong.
- HAL: Valuation is appealing, but the technical picture is strong.
- GOOG: Valuation is appealing, technical picture is mediocre.
So I am down to two; QCOM and GOOG. I like both. Comparing the thirty eight criteria used by AOM one on one for the two stocks, gives GOOG a slight edge. Both QCOM and GOOG are low beta stocks (1.03 & 1.04 respectively). Both stand to gain from the mobile era and have similar long term growth expectations. QCOM is the better priced stock and it’s my pick.
Investing is a process, not an action. It starts with stock selection (NeuroScreener), the next step is stock review (NeuroQuote), the third step is a price or value check and the final step is a pride of ownership test; I’d be happy to own GOOG & QCOM.
