Dykstra: Making MVP Picks

When the voters determine who they will cast their MVP votes for, they look at certain numbers across the board. The batting average, on-base percentage, home runs, and runs batted in are all important statistics to analyze.

I have my own numbers that I like to evaluate. When scanning the stock universe, I look for companies with a forward price-to-earnings (P/E) ratio of less than 15. This stat is a measure of investor confidence and anything under 15 tells me that the operators on Wall Street have pushed this stock down too far.

Companies with little or no debt are also great ones to choose. It is important to stick with a stock that has a good amount of free cash after it pays off its bills. This allows them added flexibility to grow their business even when times are tough. I favor companies that have a high amount of institutional support as well.

These statistics are great in determining which stocks will turn out to come through in the clutch for me. I have had a number of recent picks that have turned around for wins already. I picked up a cool $1,000 win with Microsoft(MSFT Quote) on Oct. 13. I was able to ring the register to the tune of a $4,100 win on Nov. 4 with a victory with General Electric(GE Quote). My Archer Daniels Midland(ADM Quote) pick crossed the finish line recently as well, for a profit of $7,650.

Like Pujols, a multiple MVP winner, several stocks have touched home plate many times for me. Halliburton(HAL Quote) has been a big time MVP for me this season. Texas Instruments(TXN Quote) is another one that has helped bring in the wins many times. Wachovia(WB Quote), United Technologies(UTX Quote), Boeing(BA Quote), Parker Hannifin(PH Quote) and Frontier Oil(FTO Quote) are other examples.

Always remember: Life is a journey, enjoy the ride! Lenny Dykstra manages "Nails on the Numbers," a premium options alerts service sold by TheStreet.com. Mr. Dykstra is 83-0 in his options trades this year. For a free trial to "Nails on the Numbers," click here. Mr. Dykstra writes regularly about options trading for TheStreet.com.