This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

Your Homework: Prep for the Market Turnaround Now

In spite of my views on the market, I run my screens every week. I look for stocks that meet the Schloss criteria -- those selling below book value with little debt and insider ownership. This helps me find the small, cheap stocks like Sycamore Networks (SCMR - Get Report) trading for less than cash that I want to own now. It also helps me find companies like Darling International (DAR - Get Report) -- profitable, solid companies I will want to buy in a selloff.

I also run my Ben Graham screen every week. This produces a list of profitable companies trading at P/E ratios below 8 that own at least twice as much as they owe. I may not buy shares of Forest Labs (FRX) today, but it is on my list to buy when the market reaches my downside targets. Garmin (GRMN - Get Report) probably has more weakness ahead of it due to very weak consumer spending, but given its strong financial condition and dominant market share, it is on my list of recovery stocks to buy at lower prices. Running the screens and finding promising stocks now gives me time to do the homework. When the stock market gets to my levels, I will not have the time to read 10-Qs and 10-Ks. No one will ring a bell a week in advance so I can go through the institutional shareholder lists or read the latest proxy filing.

I also take advantage of what I consider my personal research department. I search at least once a week for 13-D filings of interest. When I see that an activist firm with a long-term track record of success is buying shares of Jackson Hewitt Tax Services (JTX), I want to take a deeper look at the company. If Bill Gates' investment firm Cascade buys shares of Otter Tail Power (OTTR - Get Report) and wants to meet with company management, I want to look at the stock.

2 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
SCMR $0.39 -0.26%
BSX $16.97 1.07%
DAR $16.02 -6.97%
ESIO $6.65 0.00%
FRX $99.00 -0.77%

Markets

DOW 18,135.72 +38.82 0.21%
S&P 500 2,101.04 +2.51 0.12%
NASDAQ 4,982.8090 +15.6680 0.32%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs