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The First Cut Articles

Consensus: Stocks That Pass the Most Screens

December 2010 by John Bajkowski
These 25 stocks were identified by four or more AAII screens. Read more »

Cash Flow Kings With Rising Dividends

November 2010 by John Bajkowski
These companies have both raised dividend payments and maintained positive free cash flow for the last seven years. Read more »

Low Price-to-Sales Ratio Stocks

September 2010 by John Bajkowski
Low price-to-sales ratios may identify undervalued firms sooner than price-earnings ratios. Read more »

Stocks With Low Risk/Reward Scores

July 2010 by John Bajkowski
Using Charles Rotblut’s risk/reward scoring system to find stocks. Read more »

Attractively Priced Dividend Growth

June 2010 by John Bajkowski
Identifying high-yield stocks with a record of dividend growth. Read more »

Tortoriello's Quantitative Strategies

May 2010 by John Bajkowski
Applying Richard Tortoriello's strategies to find investment candidates. Read more »

Socially Responsible Stocks

April 2010 by John Bajkowski
The 30 stocks most widely held by socially responsible mutual funds. Read more »

Consensus: Stocks That Pass the Most Screens

January 2010 by John Bajkowski
These 25 stocks were identified by four or more AAII screens. Read more »

Low P/E Stocks With Positive Earnings Surprises

December 2009 by John Bajkowski
A starting point for investors. This issue's focus is on stocks that have had a significant positive quarterly earnings surprise since September, and that sport a below-average forward price-earnings ratio. Read more »

Attractively Priced Share Buyback Stocks

November 2009 by John Bajkowski
A starting point for investors. This issue's focus is on finding stocks that have recently repurchased their shares, and have below-average price-to-book-value ratios. Read more »

Stocks on the Move With Price Momentum

October 2009 by John Bajkowski
A starting point for investors. This issue's focus is on finding stocks with improving relative strength percentage rankings, and the highest prices as a percentage of their 52-week highs. Read more »

Financially Stable Stocks With Low Prices

September 2009 by John Bajkowski
A starting point for investors. A recent study found that portfolios of low-priced stocks outperformed higher-priced stocks, and the excess performance was not explained by firm factors such as size or valuation. With that in mind, this issue's First Cut focuses on stocks that are selling at prices below $5 per share and that have indications of both long-term financial stability and financial strength. Read more »

Stocks With Possible "Hidden" Earnings

August 2009 by John Bajkowski
A starting point for investors. This issue's focus is on firms with possible "hidden" earnings, indicated by a record of positive free cash flow that is currently greater than earnings and that are trading with low price-to-free-cash-flow ratios. Read more »

Stocks With a Competitive Edge

July 2009 by John Bajkowski
A starting point for investors. This issue's focus is on firms with positive sales growth and above-average profit margins. Read more »

High Quality + High Yield + High Growth Stocks

June 2009 by John Bajkowski
A starting point for investors. This issue's focus is on Lowell Miller's strategy for investing in high-quality growth stocks with high and growing dividends. Read more »

Magic Formula Stocks

May 2009 by John Bajkowski
A starting point for investors. This issue's focus is on Joel Greenblatt's "Magic Formula" for picking stocks: high returns on capital, and a low price-to-enterprise valu Read more »

Benjamin Graham Bear Market Stocks

April 2009 by John Bajkowski
A starting point for investors. This issue's focus is on stocks with low prices relative to a firm's net current assets, a basic Benjamin Graham approach to finding stocks trading well below their instrinsic value. Read more »

The Outcasts: Stocks Removed From the S&P 500

February 2009 by John Bajkowski
A starting point for investors. This issue's focus is on stocks possibly neglected due to their removal from the S&P 500 index. Read more »

All-Star Stocks That Pass the Most Screens

January 2009 by John Bajkowski
A starting point for investors. This issue's focus is on finding companies that passed the most AAII Stock Screens. Read more »

The First Cut: Cash-Rich Firms

November 2008 by John Bajkowski
A starting point for investors. This issue's focus is on finding companies with high levels of net cash per share relative to their share prices. Read more »

The First Cut: Momentum Stocks With Positive Earnings Surprises

October 2008 by John Bajkowski
A starting point for investors. This issue's focus is on finding companies with positive earnings surprises over the last quarter, coupled with above-average relative price strength. Read more »

The First Cut: Stocks With Low Accrual Ratios

September 2008 by John Bajkowski
A starting point for investors. This issue's focus is on finding companies that actually generate more cash than their accrual earnings indicate by screening for accrual ratios. The accrual ratio is calculated by subtracting free cash flow from net income, dividing the result by total assets and presenting the figure as a percentage. Read more »

The First Cut: Real Dogs: Pet-Care Stocks

August 2008 by John Bajkowski
A starting point for investors. This issue's focus is on finding stocks in the pet-care industry, an area that some investors believe may be "recession-proof." Read more »

The First Cut: Dividend Achievers

July 2008 by John Bajkowski
A starting point for investors. This issue's focus is on finding stocks with the highest long-term dividend growth rate, and stocks with the highest yields. Read more »

The First Cut: Using Enterprise Value to Locate Bargains

June 2008 by John Bajkowski
A starting point for investors. This issue's focus is on finding bargain stocks using a stock's enterprise value to gauge the worth of a company. Read more »

The First Cut: S&P 500 Stocks With High Payout Ratios & Below-Average P/Es

May 2008 by John Bajkowski
A starting point for investors. This issue's focus is on S&P 500 stocks with high dividend payout ratios and below-average price-earnings ratios. Read more »

The First Cut: Declining Total Assets and Positive Earnings Surprises

April 2008 by John Bajkowski
A starting point for investors. This issue's focus is on stocks with the greatest annual decline in total assets, based on a recent research paper suggesting these stocks tend to outperform stocks with the largest increases in total assets. Read more »

The First Cut: Navellier's Growth Stock Winners

February 2008 by John Bajkowski
A starting point for investors. This issue's focus is on stocks that meet Louis Navellier's eight tried-and-true fundamental factors. Read more »

Positive Surpries With Below-Average P/Es

January 2008 by John Bajkowski
A starting point for investors. This issue's focus is on stocks with below-average price-earnings ratios whose recent quarterly earnings reports surpassed the consensus forecast. Read more »