October’s Perfect Stock List

[] Today's market commentary from TradingPub is here! To view this email as a web page, go [here.]( To view this email as a web page, go [here.]( [] [] [] October’s Perfect Stock List Each month, I look at three different metrics to help build a list of low-risk, high-upside stocks given their rock-solid balance sheets. Now… I must urge caution as the month begins. We’re in a [negative equity momentum]( environment. And investors can’t just start slinging trades left and right. But, if you want great names for the long term, we use three metrics that are critical to finding the best names to trade around. • The Piotroski F-score. • The Altman Z-score. • A valuation rank. • They’re optionable, meaning they have an options chain. Now, that sounds overly simple. Well, it’s not... Because the stocks we identify have sound fundamentals — which seem to perform well in this current economy. As we do each month, let’s dive into those perfect stocks. The Perfect Plays We start each screen by focusing on improving financial growth and low debt exposure — the F-Score tells both. This score was created by former Stanford/Chicago Professor Joseph Piotroski. The F-Score — or Piotroski Score — is a nine-point system that rewards each company for meeting a certain criterion on its balance sheet. If the company meets all nine criteria, it has an F-score of 9. On its own, just this number is incredibly powerful, as a strong score is a sign of outstanding financial discipline at the company. Let’s look at all nine principles. 1. Positive net income: Assign 1 if the company has positive net income in the current year; otherwise, assign 0. 2. Positive operating cash flow: Assign 1 if the company has positive operating cash flow in the current year; otherwise, assign 0. 3. Increasing return on assets (ROA): Assign 1 if the company's ROA is higher in the current year compared to the previous year; otherwise, assign 0. 4. Positive cash flow from operations in relation to net income: Assign 1 if the company's operating cash flow is greater than net income; otherwise, assign 0. 5. Decreasing leverage: Assign 1 if the company's long-term debt ratio is lower in the current year compared to the previous year; otherwise, assign 0. 6. Increasing current ratio: Assign 1 if the company's current ratio (current assets divided by current liabilities) is higher in the current year than the previous year; otherwise, assign 0. 7. No dilution of shares: Assign 1 if the company did not issue additional shares of common stock in the last year; otherwise, assign 0. 8. Increasing gross margin: Assign 1 if the company's gross margin (gross profit divided by sales) is higher in the current year than the previous year; otherwise, assign 0. 9. Increasing asset turnover: Assign 1 if the company's asset turnover (sales divided by average total assets) is higher in the current year compared to the previous year; otherwise, assign 0. Then there’s the Altman Z-Score. A weighted average of five metrics determines whether a company might go out of business. So, if a company falls below 2.6, it has a risky balance sheet. Why is it risky? There are large debt loads or weak cash flow. Simple as that. As always, I want to find stocks with a Z-Score of 3 or higher. I don’t know what’s coming in the rest of 2023, let alone 2024. So I want to ensure that I’m protected if a major credit event transpires. We have a lot of questions about liquidity in the future, and these names are the ones built to ride out a potential storm. They tell us RIGHT NOW what is working in the U.S. economy. Finally, I add on a quick valuation score. We want stocks trading at cheap buyout multiples… It’s as simple as that. Since we are fans of selling put spreads on stocks that we want to own on a monthly rotation, I’ve ensured that these stocks have liquid options chains. The Perfect Plays So… here’s the list. And surprising as usual. We have several energy names in ARLP, LBRT and CEIX. [] But how about Toll Brothers Inc. (NYSE: TOL) or Build-A-Bear Workshop Inc. (NYSE: BBW). Turns out these stocks have done great by cutting back on their leverage, employing shareholder-friendly actions, and riding a bit of a contrarian wave. Remember, we want sectors to be positive when selling put spreads, and we cover all of this at Executive Payouts Unlimited. [Check it out, right here.]( [] Chat soon, Garrett {NAME} *This is for informational and educational purposes only. There is an inherent risk in trading, so trade at your own risk. [] [] _________________________________________________ [] Unless You’ve Worked on Wall Street, You’d Never Know This Existed There’s an “invisible hand” that can [control where any stock is heading next.]( It doesn't show up on the balance sheet…or on a stock’s chart… It’s nowhere to be found when you look at the fundamentals… And it’s completely undetected by commonly used valuation metrics. Unless you're on the inside… working on Wall Street… or for one of the top firms… You’d never know it even exists. But once you can see this “invisible hand” for yourself… And how it can completely control a stock’s every move… [You’ll Never See the Market the Same Again]( [] _______________________________________________ [] Market Momentum is RED Equity Momentum was red again, but the market is trying its best to get off the mat with interest rates rising again this week. *This is for informational and educational purposes only. There is inherent risk in trading, so trade at your own risk. [] _______________________________________________ [] Want to get a link to my TradingPub articles as soon as they post? I’ve got you covered! Telegram is an entirely free messaging app and getting access is as easy as 1… 2… 3… 1. Download Telegram on your mobile device (Before you can add Telegram to your desktop computer, you must download the application on your phone and create your account: To download to your iPhone, [click here](. To download to your Android device, [click here](. After the download is complete, please create an account. NOTE: You can manage your privacy settings by clicking “Settings,” and then “Privacy & Security.” 2. Download Telegram on your desktop: Once you’ve downloaded Telegram onto your mobile device and created your personal account, you can download it onto your desktop computer. To download onto your PC, [click here](. To download onto your MacOS, [click here](. 3. Then add the TradingPub channel and you’re done: [9_jjnFuAvno0MjNh]( See you there! Garrett [] [] [] October’s Perfect Stock List Each month, I look at three different metrics to help build a list of low-risk, high-upside stocks given their rock-solid balance sheets. Now… I must urge caution as the month begins. We’re in a [negative equity momentum]( environment. And investors can’t just start slinging trades left and right. But, if you want great names for the long term, we use three metrics that are critical to finding the best names to trade around. - The Piotroski F-score. - The Altman Z-score. - A valuation rank. - They’re optionable, meaning they have an options chain. Now, that sounds overly simple. Well, it’s not... Because the stocks we identify have sound fundamentals — which seem to perform well in this current economy. As we do each month, let’s dive into those perfect stocks. The Perfect Plays We start each screen by focusing on improving financial growth and low debt exposure — the F-Score tells both. This score was created by former Stanford/Chicago Professor Joseph Piotroski. The F-Score — or Piotroski Score — is a nine-point system that rewards each company for meeting a certain criterion on its balance sheet. If the company meets all nine criteria, it has an F-score of 9. On its own, just this number is incredibly powerful, as a strong score is a sign of outstanding financial discipline at the company. Let’s look at all nine principles. 1. Positive net income: Assign 1 if the company has positive net income in the current year; otherwise, assign 0. 2. Positive operating cash flow: Assign 1 if the company has positive operating cash flow in the current year; otherwise, assign 0. 3. Increasing return on assets (ROA): Assign 1 if the company's ROA is higher in the current year compared to the previous year; otherwise, assign 0. 4. Positive cash flow from operations in relation to net income: Assign 1 if the company's operating cash flow is greater than net income; otherwise, assign 0. 5. Decreasing leverage: Assign 1 if the company's long-term debt ratio is lower in the current year compared to the previous year; otherwise, assign 0. 6. Increasing current ratio: Assign 1 if the company's current ratio (current assets divided by current liabilities) is higher in the current year than the previous year; otherwise, assign 0. 7. No dilution of shares: Assign 1 if the company did not issue additional shares of common stock in the last year; otherwise, assign 0. 8. Increasing gross margin: Assign 1 if the company's gross margin (gross profit divided by sales) is higher in the current year than the previous year; otherwise, assign 0. 9. Increasing asset turnover: Assign 1 if the company's asset turnover (sales divided by average total assets) is higher in the current year compared to the previous year; otherwise, assign 0. Then there’s the Altman Z-Score. A weighted average of five metrics determines whether a company might go out of business. So, if a company falls below 2.6, it has a risky balance sheet. Why is it risky? There are large debt loads or weak cash flow. Simple as that. As always, I want to find stocks with a Z-Score of 3 or higher. I don’t know what’s coming in the rest of 2023, let alone 2024. So I want to ensure that I’m protected if a major credit event transpires. We have a lot of questions about liquidity in the future, and these names are the ones built to ride out a potential storm. They tell us RIGHT NOW what is working in the U.S. economy. Finally, I add on a quick valuation score. We want stocks trading at cheap buyout multiples… It’s as simple as that. Since we are fans of selling put spreads on stocks that we want to own on a monthly rotation, I’ve ensured that these stocks have liquid options chains. The Perfect Plays So… here’s the list. And surprising as usual. We have several energy names in ARLP, LBRT and CEIX. [] But how about Toll Brothers Inc. (NYSE: TOL) or Build-A-Bear Workshop Inc. (NYSE: BBW). Turns out these stocks have done great by cutting back on their leverage, employing shareholder-friendly actions, and riding a bit of a contrarian wave. Remember, we want sectors to be positive when selling put spreads, and we cover all of this at Executive Payouts Unlimited. [Check it out, right here.]( [] Chat soon, Garrett {NAME} *This is for informational and educational purposes only. There is an inherent risk in trading, so trade at your own risk. [] [] _________________________________________________ [] Unless You’ve Worked on Wall Street, You’d Never Know This Existed There’s an “invisible hand” that can [control where any stock is heading next.]( It doesn't show up on the balance sheet…or on a stock’s chart… It’s nowhere to be found when you look at the fundamentals… And it’s completely undetected by commonly used valuation metrics. Unless you're on the inside… working on Wall Street… or for one of the top firms… You’d never know it even exists. But once you can see this “invisible hand” for yourself… And how it can completely control a stock’s every move… [You’ll Never See the Market the Same Again]( [] _______________________________________________ [] Market Momentum is RED Equity Momentum was red again, but the market is trying its best to get off the mat with interest rates rising again this week. *This is for informational and educational purposes only. There is inherent risk in trading, so trade at your own risk. [] _______________________________________________ [] Want to get a link to my TradingPub articles as soon as they post? I’ve got you covered! Telegram is an entirely free messaging app and getting access is as easy as 1… 2… 3… 1. Download Telegram on your mobile device (Before you can add Telegram to your desktop computer, you must download the application on your phone and create your account: To download to your iPhone, [click here](. To download to your Android device, [click here](. After the download is complete, please create an account. NOTE: You can manage your privacy settings by clicking “Settings,” and then “Privacy & Security.” 2. Download Telegram on your desktop: Once you’ve downloaded Telegram onto your mobile device and created your personal account, you can download it onto your desktop computer. To download onto your PC, [click here](. To download onto your MacOS, [click here](. 3. Then add the TradingPub channel and you’re done: [9_jjnFuAvno0MjNh]( See you there! Garrett [] A TradingPub Publication ABOUT US: We believe that the opportunity for financial literacy and freedom belongs to all people, not just those who already have years of investing experience. TradingPub provides an array of educational services and products that will help you navigate the markets and become a better investor. Trading is made simple through our online forum full of trading techniques to give you the best tools to kick-start your investing journey. We offer collaborative webinars and training; we love to teach. No matter the opportunity, we bring together a strong community of like-minded traders to focus on analyzing market news as it’s presented each day. DISCLAIMER: FOR INFORMATION PURPOSES ONLY. The materials presented from TradingPub LLC are for your informational purposes only. Neither TradingPub nor its employees offer investment, legal or tax advice of any kind, and the analysis displayed with various tools does not constitute investment, legal or tax advice and should not be interpreted as such. Using the data and analysis contained in the materials for reasons other than the informational purposes intended is at the user’s own risk. DISCLAIMER: TRADE AT YOUR OWN RISK; TRADING INVOLVES RISK OF LOSS; SEEK PROFESSIONAL ADVICE. TradingPub is not responsible for any losses that may occur from transactions effected based upon information or analysis contained in the presented. To the extent that you make use of the concepts with the presentation material, you are solely responsible for the applicable trading or investment decision. Trading activity, including options transactions, can involve the risk of loss, so use caution when entering any option transaction. You trade at your own risk, and it is recommended you consult with a financial advisor for investment, legal or tax advice relating to options transactions. Please visit for our full Terms and Conditions. [Unsubscribe]( This email was sent to {EMAIL} by TradingPub 101 Marketside Ave, Suite 404 PMB 318 Ponte Vedra, Florida 32081, United States [] A TradingPub Publication ABOUT US: We believe that the opportunity for financial literacy and freedom belongs to all people, not just those who already have years of investing experience. TradingPub provides an array of educational services and products that will help you navigate the markets and become a better investor. Trading is made simple through our online forum full of trading techniques to give you the best tools to kick-start your investing journey. We offer collaborative webinars and training; we love to teach. No matter the opportunity, we bring together a strong community of like-minded traders to focus on analyzing market news as it’s presented each day. DISCLAIMER: FOR INFORMATION PURPOSES ONLY. The materials presented from TradingPub LLC are for your informational purposes only. Neither TradingPub nor its employees offer investment, legal or tax advice of any kind, and the analysis displayed with various tools does not constitute investment, legal or tax advice and should not be interpreted as such. Using the data and analysis contained in the materials for reasons other than the informational purposes intended is at the user’s own risk. DISCLAIMER: TRADE AT YOUR OWN RISK; TRADING INVOLVES RISK OF LOSS; SEEK PROFESSIONAL ADVICE. TradingPub is not responsible for any losses that may occur from transactions effected based upon information or analysis contained in the presented. To the extent that you make use of the concepts with the presentation material, you are solely responsible for the applicable trading or investment decision. Trading activity, including options transactions, can involve the risk of loss, so use caution when entering any option transaction. You trade at your own risk, and it is recommended you consult with a financial advisor for investment, legal or tax advice relating to options transactions. Please visit for our full Terms and Conditions. [Unsubscribe]( This email was sent to {EMAIL} by TradingPub 101 Marketside Ave, Suite 404 PMB 318 Ponte Vedra, Florida 32081, United States