Table 3. Rule #1 Passing Companies
Company ROIC
5-Yr
Avg
(%)
5-Yr Avg Annual Growth EPS
Grth
Est
(%)
LT Debt-
to-
FCF
(X)
Volume
10-day
Avg
(000s)
Insider
Sell
Trades
(X)
Mkt
Cap
($ Mil)
52-Wk
Re
Strgth
(%)
Description
Equity
(%)
Sales
(%)
EPS
(%)
FCF/
Shr
(%)
Pinnacle Airlines Corp. (M: PNCL) 32 11.7 32.5 40.4 22.7 20 0.49 624 22 325.7 140 regional airline hold co.
Odyssey Re Holdings (N: ORH) 10.6 20.5 23.1 121.8 69.1 14 0.92 557 4 2,673.40 20 reinsurance underwriter
RenaissanceRe Holdings (N: RNR) 14.1 18.2 33.1 31.2 16.1 12.3 0.65 1,008 29 4,095.90 2 reinsurance & insurance
First Marblehead Corp. (N: FMD) 39.7 114.4 84 89.8 58.5 36.1 0.07 1,421 51 3,145.90 -13 education lending servs
NutriSystem Inc. (M: NTRI) 28.8 110.7 88.6 160.1 176.3 23.5 0 1,441 16 1,697.30 -16 food for weight mgmt
InterDigital, Inc. (M: IDCC) 27.6 35.5 55.6 68.8 202.9 23.3 0.01 1,687 0 1,212.60 -23 digital wireless tech
Palomar Medical Tech. (M: PMTI) 25.7 97.5 49.9 50 35.2 22.4 0 600 0 555.6 -26 laser cosmetic prods
Travelzoo Inc. (M: TZOO) 33.7 110.1 62.7 122.1 102.8 20 0 460 0 262.3 -50 Internet media co.
Median for Rule #1 Stocks 28.2 66.5 52.8 79.3 63.8 21.2 0.04 816 10 1455 -14.5  
Median for All Exch. Stocks 7 9.6 10.4 15.4 7.5 14.5 12.52 308 1 466.7 -4  
Exchange Key: M=NASDAQ National or NASDAQ Small Cap Market, N= New York Stock Exchange
Source: AAII's Stock Investor Pro/Reuters Research, Inc. Data as of August 17, 2007.