Validea Hot List - July 17, 2015

Executive Summary | Portfolio | Guru Analysis | Watch List


Executive Summary	July 17, 2015

The Economy

While investors seem heartened that Eurozone leaders have reached a deal to help Greece stave off a financial collapse, economic news at home has been more mixed over the past fortnight.

For starters, there was the June jobs report, which looked solid but had some big caveats. The economy added 223,000 jobs during June, the Labor Department said, with the unemployment rate falling to 5.3%, the lowest it has been since April 2008. The broader "U-6" rate (which unlike the headline number takes into account those working part-time who want full-time work, and discouraged workers who have given up looking for a job) fell to 10.5%, the lowest it has been since before Lehman Brothers collapsed and triggered the 2008-09 financial crisis.

On the down side, however, average hourly wages were flat vs. May, and the number of people not in the workforce jumped by more than 600,000. And the jobs-added figures for April and May were revised downward by a total of 60,000.

Good news came from the service sector, which expanded in June for the 65th straight month, according to the Institute for Supply Management, doing so at about the same strong pace it did in May. New orders also grew at a solid pace. Employment conditions weren't as strong as they were in May, but were still good.

Elsewhere, it continues to be a bumpy ride for the US consumer. After surging in May, retail and food service sales fell 0.3% in June, according to a new report from the Census Bureau. Compared to the year-ago period, they were up 2.9%, however, one of the better year-over-year gains we've seen in recent months.

Industrial production increased for only the second time this year, rising 0.3% in June, according to a new Federal Reserve report. The gains were driven by a 1.0% increase in mining output, which is likely a result of energy companies stabilizing after making big cutbacks amid the oil price declines. Utility output, which tends to be driven by seasonal factors, rose 1.5%. Manufacturing output was flat.

Speaking of energy, gas prices have indeed leveled off. A gallon of regular unleaded on average cost $2.78 as of July 15, down just slightly from $2.80 a month earlier, according to AAA. That's still about 23% below where it was a year ago. If the Iran nuclear deal goes through, significant amounts of Iranian oil could be released into world markets, putting new downward pressure on oil and gas prices.

Since our last newsletter, the S&P 500 returned 2.3%, while the Hot List returned -2.7%. So far in 2015, the portfolio has returned 10.2% vs. 3.2% for the S&P. Since its inception in July 2003, the Hot List is far outpacing the index, having gained 256.4% vs. the S&P's 112.3% gain.

Portfolio Update

While it remains well ahead of the S&P 500 year-to-date, the past fortnight wasn't a good one for the Hot List. Seven of the portfolio's ten holdings were in the red since our last newsletter, as of mid-morning trading on Thursday.

The worst performer was auto loan firm Credit Acceptance Corp., which was down 8.6%. The stock has been an extremely strong performer over the past year, and hit a 52-week high just last week. The pullback may have been a case of investors tempering their enthusiasm, particularly with a new analyst initiating coverage on the firm and issuing a "sell" rating. Credit Acceptance's fundamentals remain very strong, however, as it still gets strong interest from two of my models and high scores from several others.

Another laggard was Sanderson Farms, which was down about 6%. Some bird flu outbreaks around the globe may have been hurting shares of the poultry producer. There has been a lot of short interest in the stock, but its fundamentals remain quite strong. Sanderson gets strong interest from three of my models and high marks from a few others.

The portfolio did have some nice winners over the past fortnight. Leading the way was Heritage Insurance Holdings, which was up more than 7%. Shares hit a new 52-week high and are up close to 20% since joining the portfolio on June 5. The gains may be the result of continuing momentum after a few consecutive quarters of very strong earnings and sales growth.

Also performing well was commercial real estate firm Marcus & Millichap, which gained about 5%. There didn't seem to be a stock-specific catalyst for the gains, but M&M is another firm that has been producing excellent growth over the past year and has strong share price momentum.

Despite a down couple weeks, the Hot List remains well ahead of its benchmark for the year and the long-term, and its holdings have extremely strong fundamentals. On average, its 10 holdings have a 5-year earnings per share growth rate of over 20% and trade for less than 13 times earnings. That combination of strong growth and good value bodes well going forward. In two weeks, we will rebalance the portfolio, and check back in on how the current holdings are faring.

Editor-in-Chief: John Reese

Since Inception
Hot List	256.4%
S&P 500	112.3%
Accuracy	55.0%
Beta	1.2

YTD
Hot List	10.2%
S&P 500	3.2%

Since Last Issue
Hot List	-2.7%
S&P 500	2.3%

Avg. Fundamentals
Market Cap (mil)	$4,836
PE Ratio	12.6
5 Yr EPS Growth	20.3%
Yield	1.0%
Rel. Strength	59

Portfolio Sectors
Financial	5
Services	2
Basic Materials	1
Capital Goods	1
Consumer/Non-Cyclical	1

Guru Spotlight: Warren Buffett

For many investors, the hardest part of investing isn't deciding which stocks to pick -- it's knowing when to sell. So given the difficulty of selling, and his penchant for simple, out-of-the-box thinking, it shouldn't be too much of a surprise that the great Warren Buffett says his favorite time to sell a stock is, well, never.

Consider what Buffett wrote in his 1988 better to Berkshire Hathaway shareholders:

In 1988 we made major purchases of Federal Home Loan Mortgage Pfd. and Coca Cola. We expect to hold these securities for a long time. In fact, when we own portions of outstanding businesses with outstanding managements, our favorite holding period is forever. We are just the opposite of those who hurry to sell and book profits when companies perform well but who tenaciously hang on to businesses that disappoint. Peter Lynch aptly likens such behavior to cutting the flowers and watering the weeds.

To Buffett, stellar businesses are steady, reliable compounding machines, and ideally he would rather hold onto one of them forever than try to make a profit by jumping in and out of other less worthy stocks at the right times. But that doesn't mean Buffett and Berkshire won't ever sell a stock. Just about every quarter, the company will make some adjustments to its holdings, and sometimes it will even make extremely significant changes. For example, in last year's fourth quarter, Berkshire sold off its entire 41 million share stake in Exxon Mobil amid tumbling oil prices. Exxon had been Berkshire Hathaway's eighth-largest position, but the firm ditched the oil giant after holding it for only about a year and a half.

When Buffett and Berkshire do sell, however, it doesn't seem to be because they are looking to make a quick gain or because a short-term fear has arisen. Instead, it's because the conditions that led to their initial bullish thesis have changed. Generally, that's what we do, though the way we put that idea into practice differs significantly from how Buffett operates. We reassess our holdings every month, as you know, to see if their fundamentals and financials are holding up. Our belief is that if you buy a stock because it has, say, a low P/E ratio, high return on equity, and no long-term debt, you should unload it if and when it no longer has those qualities, be it a month from now or five years from now.

Compared to quarterly or annual rebalancing approaches (which we also track), this monthly rebalancing system seems to have helped my Buffett-based model maximize returns. Check out the returns for our Buffett portfolios using various rebalancing methods:

Buffett-Based 10-Stock Portfolio, Monthly Rebalancing Approach

Buffett-Based 10-Stock Portfolio, Quarterly Rebalancing Approach

Buffett-Based 10-Stock Portfolio, Annual Rebalancing Approach

The monthly rebalancing approach also has the best annualized returns among our three 20-stock Buffett portfolios.

Now, rebalancing frequencies will certainly affect trading costs, which in turn will affect your net returns, and the model portfolios we track do not include trading fees (or dividends). And there are tax implications to more frequent trading, too. Keep in mind, however, that while our monthly rebalanced 10-stock Buffett portfolio has the ability to change over all of its holdings every month, it has been far from a rapid-fire trading vehicle. Three of its current holdings have been in the portfolio for more than a year, and one of those -- Ross Stores -- has been a holding since October 2012. Coach, Inc., spent nearly five years in the portfolio before it was replaced last August.

The portfolio's lower turnover rate is a result of the stock-picking criteria the Buffett model uses. It requires a company to have a decade of persistent earnings growth, a decade of strong returns on equity, and a decade of strong returns on retained earnings. While a lot of companies might have a good year or two or three, very few are able to put up a decade of excellence, which requires that the firm perform well during good economic times and bad times as well. So there are not going to be scores of new stocks popping up every month that pass the strategy. Plus, companies that can meet those targets often have a durable competitive advantage, so they continue to meet the targets as time rolls on and stay in the portfolio. In addition, the model also looks at certain fundamentals like earnings and return on equity on a full-year basis, so a business's quarterly ups and downs don't always have an immediate impact on its stock's rating.

That being said, it does appear that having the ability to more frequently ditch stocks whose fundamentals deteriorate rapidly, and the ability to shift from one "Buffett-type" stock to another that is cheaper, have added value to the monthly rebalanced portfolio.

All of this is not to say that I think Buffett should be rebalancing Berkshire's portfolio every month. When you are managing a $100 billion portfolio with many multi-billion-dollar positions, buying and selling stocks presents logistical challenges that individual investors don't have to deal with. For our portfolios, the monthly rebalancing seems to generate the best gross returns, but for different strategies and circumstances different frequencies may be best. To me, the key broader point is that you sell a stock not when it has a bad month in terms of price performance, or when scary headlines about it surface, or when it reaches a certain price target. You sell a stock when the reasoning used to buy it no longer holds up. If you can do that with consistency and discipline, you should succeed no matter what you're rebalancing frequency is.

News about Validea Hot List Stocks

Heritage Insurance Holdings, Inc. (HRTG): Heritage has continued to make new 52-week highs over the past fortnight. There didn't appear to be a clear catalyst for the stock's recent rise -- it is up close to 20% since joining the portfolio on June 5. Heritage has posted several quarters in a row of very strong earnings, so the recent gains may be the result of continuing earnings-driven momentum.

The Next Issue

In two weeks, we will publish another issue of the Hot List, at which time we will rebalance the portfolio. If you have any questions, please feel free to contact us at hotlist@validea.com.


Current Portfolio

Ticker	Company Name	Industry	Guru Score
AFSI	AMTRUST FINANCIAL SERVICES INC	Insurance (Prop. & Casualty)	100
SAFM	SANDERSON FARMS, INC.	Food Processing	89
HRTG	HERITAGE INSURANCE HOLDINGS INC	Insurance (Prop. & Casualty)	83
LL	LUMBER LIQUIDATORS HOLDINGS INC	Retail (Home Improvement)	70
GTLS	CHART INDUSTRIES, INC.	Misc. Capital Goods	66
WRLD	WORLD ACCEPTANCE CORP.	Consumer Financial Services	64
SC	SANTANDER CONSUMER USA HOLDINGS INC	Consumer Financial Services	60
SSL	SASOL LIMITED (ADR)	Chemical Manufacturing	55
MMI	MARCUS & MILLICHAP INC	Real Estate Operations	44
CACC	CREDIT ACCEPTANCE CORP.	Consumer Financial Services	30

Ticker	Market Cap	Date Added	Start Price	Current Price	Return
AFSI	$5,472	5/8/2015	$58.12	$66.38	14.2%
SAFM	$1,564	1/16/2015	$80.96	$69.80	-13.8%
HRTG	$807	6/5/2015	$22.00	$27.09	23.1%
LL	$553	6/5/2015	$21.37	$20.41	-4.5%
GTLS	$1,018	3/13/2015	$33.50	$33.32	-0.5%
WRLD	$535	7/2/2015	$61.21	$59.63	-2.6%
SC	$8,858	7/2/2015	$26.20	$24.76	-5.5%
SSL	$23,049	6/5/2015	$34.45	$35.20	2.2%
MMI	$1,749	7/2/2015	$46.54	$47.19	1.4%
CACC	$4,751	7/2/2015	$261.14	$230.68	-11.7%


Detailed Stock Analysis

Disclaimer: The analysis is from Validea's selection and interpretation of content from the guru's book or published writings, and is not from nor endorsed by the guru. See Full Disclaimer

AMTRUST FINANCIAL SERVICES INC

Profile

Strategy: Contrarian Investor
Based on: David Dreman

Amtrust Financial Services, Inc. is an insurance holding company. Through its wholly owned subsidiaries, the Company provides specialty property and casualty insurance focusing on workers' compensation and commercial package coverage for small business, specialty risk and extended warranty coverage, and property and casualty coverage for middle market business. The Company operates through three segments. The Small Commercial Business segment provides workers' compensation and commercial package and other property and casualty insurance products. The Specialty Risk and Extended Warranty segment provides coverage for consumer and commercial goods and custom designed coverages, such as accidental damage plans and payment protection plans. The Specialty Program segment provides workers' compensation, package products, general liability, commercial auto liability, excess and surplus lines programs and other specialty commercial property and casualty insurance.

Analysis

Guru Score: 79%

MARKET CAP: [PASS]

Medium to large-sized companies (the largest 1500 companies) should be chosen, because they are more in the public eye. Furthermore, the investor is exposed to less risk of "accounting gimmickry", and companies of this size have more staying power. AFSI has a market cap of $5,472 million, therefore passing the test.

EARNINGS TREND: [PASS]

A company should show a rising trend in the reported earnings for the most recent quarters. AFSI's EPS for the past 2 quarters, (from earliest to most recent quarter) 0.88, 1.85 have been increasing, and therefore the company passes this test.

EPS GROWTH RATE IN THE IMMEDIATE PAST AND FUTURE: [PASS]

This methodology likes to see companies with an EPS growth rate higher than the S&P in the immediate past and a likelihood that this trend will continue in the near future. AFSI passes this test as its EPS growth rate over the past 6 months (-6.09%) has beaten that of the S&P (-9.96%). AFSI's estimated EPS growth for the current year is (1.10%), which indicates the company is expected to experience positive earnings growth. As a result, AFSI passes this test.

This methodology would utilize four separate criteria to determine if AFSI is a contrarian stock. In order to eliminate weak companies we have stipulated that the stock should pass at least two of the following four major criteria in order to receive "Some Interest".

P/E RATIO: [PASS]

The P/E of a company should be in the bottom 20% of the overall market. AFSI's P/E of 10.99, based on trailing 12 month earnings, meets the bottom 20% criterion (below 12.42), and therefore passes this test.

PRICE/CASH FLOW (P/CF) RATIO: [FAIL]

The P/CF of a company should be in the bottom 20% of the overall market. AFSI's P/CF of 10.03 does not meet the bottom 20% criterion (below 7.11), and therefore fails this test.

PRICE/BOOK (P/B) VALUE: [FAIL]

The P/B value of a company should be in the bottom 20% of the overall market. AFSI's P/B is currently 2.76, which does not meet the bottom 20% criterion (below 1.01), and it therefore fails this test.

PRICE/DIVIDEND (P/D) RATIO: [FAIL]

The P/D ratio for a company should be in the bottom 20% of the overall market (that is the yield should be in the top 20%). AFSI's P/D of 66.23 does not meet the bottom 20% criterion (below 19.84), and it therefore fails this test.

This methodology maintains that investors should look for as many healthy financial ratios as possible to ascertain the financial strength of the company. These criteria are detailed below.

PAYOUT RATIO: [PASS]

A good indicator that a company has the ability to raise its dividend is a low payout ratio. The payout ratio for AFSI is 14.37%, while its historical payout ratio has been 14.73%. Therefore, it passes the payout criterion.

RETURN ON EQUITY: [PASS]

The company should have a high ROE, as this helps to ensure that there are no structural flaws in the company. This methodology feels that the ROE should be greater than the top one third of ROE from among the top 1500 large cap stocks, which is 16.89%, and would consider anything over 27% to be staggering. The ROE for AFSI of 28.31% is high enough to pass this criterion.

PRE-TAX PROFIT MARGINS: [PASS]

This methodology looks for pre-tax profit margins of at least 8%, and considers anything over 22% to be phenomenal. AFSI's pre-tax profit margin is 13.36%, thus passing this criterion.

YIELD: [FAIL]

The company in question should have a yield that is high and that can be maintained or increased. AFSI's current yield is 1.51%, while the market yield is 2.65%. AFSI fails this test.

SANDERSON FARMS, INC.

Profile

Strategy: Price/Sales Investor
Based on: Kenneth Fisher

Sanderson Farms, Inc. is a poultry processing company which is engaged in the production, processing, marketing and distribution of fresh and frozen chicken and other prepared chicken items. In addition, the Company is engaged in the processing, marketing and distribution of prepared chicken through its wholly owned subsidiary, Sanderson Farms, Inc. (Foods Division). It produces a range of processed chicken products and prepared chicken items. It sells ice pack, chill pack, bulk pack and frozen chicken, in whole, cut-up and boneless form, under the Sanderson Farms brand name to retailers, distributors, and casual dining operators in the south-eastern, south-western, north-eastern and western United States and to customers who resell frozen chicken into export markets. During the fiscal year ended October 31, 2013 (fiscal 2013), it processed 452 million chickens, or over 3.0 billion dressed pounds.

Analysis

Guru Score: 100%

PRICE/SALES RATIO: [PASS]

The prospective company should have a low Price/Sales ratio. Non-cyclical (non-Smokestack) companies with Price/Sales ratios below 0.75 are tremendous values and should be sought. SAFM's P/S of 0.54 based on trailing 12 month sales, is below 0.75 which is considered quite attractive. It passes this methodology's P/S ratio test with flying colors.

TOTAL DEBT/EQUITY RATIO: [PASS]

Less debt equals less risk according to this methodology. SAFM's Debt/Equity of 1.03% is acceptable, thus passing the test.

PRICE/RESEARCH RATIO: [PASS]

This methodology considers companies in the Technology and Medical sectors to be attractive if they have low Price/Research ratios. SAFM is neither a Technology nor Medical company. Therefore the Price/Research ratio is not available and, hence, not much emphasis should be placed on this particular variable.

PRELIMINARY GRADE: Some Interest in SAFM At this Point
Is SAFM a "Super Stock"? YES

PRICE/SALES RATIO: [PASS]

The prospective company should have a low Price/Sales ratio. Non-cyclical(non-Smokestack) companies with Price/Sales ratios below .75 are tremendous values and should be sought.SAFM's P/S ratio of 0.54 is below .75 which is considered extremely attractive. It passes this methodology's P/S ratio test with flying colors.

LONG-TERM EPS GROWTH RATE: [PASS]

This methodology looks for companies that have an inflation adjusted EPS growth rate greater than 15%. SAFM's inflation adjusted EPS growth rate of 16.60% passes the test.

FREE CASH PER SHARE: [PASS]

This methodology looks for companies that have a positive free cash per share. Companies should have enough free cash available to sustain three years of losses. This is based on the premise that companies without cash will soon be out of business. SAFM's free cash per share of 4.65 passes this criterion.

THREE YEAR AVERAGE NET PROFIT MARGIN: [PASS]

This methodology looks for companies that have an average net profit margin of 5% or greater over a three year period. SAFM, whose three year net profit margin averages 5.37%, passes this evaluation.

HERITAGE INSURANCE HOLDINGS INC

Profile

Strategy: P/E/Growth Investor
Based on: Peter Lynch

Heritage Insurance Holdings, Inc. (Heritage Insurance), formerly Heritage Insurance Holdings, LLC, is a property and casualty insurance holding company. The Company is engaged in providing personal and commercial residential insurance. Through Its subsidiary, Heritage Property & Casualty Insurance Company (Heritage P&C), it provides personal residential insurance for single-family homeowners and condominium owners, rental property insurance and commercial residential insurance in the state of Florida. The Company is vertically integrated and control or manage all aspects of insurance underwriting, actuRoboto analysis, distribution and claims processing, and adjusting. It has approximately 207,000 personal residential policies in force and approximately 2,400 commercial residential policies in force.

Analysis

Guru Score: 93%

DETERMINE THE CLASSIFICATION:

This methodology would consider HRTG a "fast-grower".

P/E/GROWTH RATIO: [PASS]

The investor should examine the P/E (11.48) relative to the growth rate (44.14%), based on the average of the 3 and 4 year historical eps growth rates, for a company. This is a quick way of determining the fairness of the price. In this particular case, the P/E/G ratio for HRTG (0.26) is very favorable.

SALES AND P/E RATIO: [NEUTRAL]

For companies with sales greater than $1 billion, this methodology likes to see that the P/E ratio remain below 40. Large companies can have a difficult time maintaining a growth rate high enough to support a P/E above this threshold. HRTG, whose sales are $295.1 million, is not considered large enough to apply the P/E ratio analysis. However, an investor can analyze the P/E ratio relative to the EPS growth rate.

EPS GROWTH RATE: [PASS]

This methodology favors companies that have several years of fast earnings growth, as these companies have a proven formula for growth that in many cases can continue many more years. This methodology likes to see earnings growth in the range of 20% to 50%, as earnings growth over 50% may be unsustainable. The EPS growth rate for HRTG is 44.1%, based on the average of the 3 and 4 year historical eps growth rates, which is considered 'OK'. However, it may be difficult to sustain such a high growth rate.

TOTAL DEBT/EQUITY RATIO: [NEUTRAL]

HRTG is a financial company so debt to equity rules are not applied to determine the company's financial soundness.

EQUITY/ASSETS RATIO: [PASS]

This methodology uses the Equity/Assets Ratio as a way to determine a financial intermediary's health, as it is a better measure than the Debt/Equity Ratio. HRTG's Equity/Assets ratio (43.00%) is extremely healthy and above the minimum 5% this methodology looks for, thus passing the criterion.

RETURN ON ASSETS: [PASS]

This methodology uses Return on Assets as a way to measure a financial intermediary's profitability. HRTG's ROA (14.51%) is above the minimum 1% that this methodology looks for, thus passing the criterion.

FREE CASH FLOW: [NEUTRAL]

The Free Cash Flow/Price ratio, though not a requirement, is considered a bonus if it is above 35%. A positive Cash Flow (the higher the better) separates a wonderfully reliable investment from a shaky one. This methodology prefers not to invest in companies that rely heavily on capital spending. This ratio for HRTG (26.76%) is too low to add to the attractiveness of the stock. Keep in mind, however, that it does not adversely affect the company as it is a bonus criteria.

NET CASH POSITION: [NEUTRAL]

Another bonus for a company is having a Net Cash/Price ratio above 30%. Lynch defines net cash as cash and marketable securities minus long term debt. According to this methodology, a high value for this ratio dramatically cuts down on the risk of the security. The Net Cash/Price ratio for HRTG (19.75%) is too low to add to the attractiveness of this company. Keep in mind, however, that it does not adversely affect the company as it is a bonus criteria.

LUMBER LIQUIDATORS HOLDINGS INC

Profile

Strategy: P/E/Growth Investor
Based on: Peter Lynch

Lumber Liquidators Holdings, Inc. (Lumber Liquidators) is a retailer of hardwood flooring, and hardwood flooring enhancements and accessories in North America. The Company's product categories include Solid and Engineered Hardwood; Laminate; Bamboo, Cork and Vinyl Plank, and Moldings and Accessories. The Company sells its products primarily to homeowners or to contractors on behalf of homeowners. The Company offers wood flooring under18 brand names, led by Bellawood, a collection of solid and engineered hardwood flooring, bamboo flooring, moldings and accessories. The Company also offers a range of flooring enhancements and installation accessories, including moldings, noise-reducing underlay and tools. It offers around 400 different flooring product stock-keeping units. As of February 23, 2015, Lumber Liquidators operated around 354 stores located in 46 states of the United States and nine store locations in Canada.

Analysis

Guru Score: 91%

DETERMINE THE CLASSIFICATION:

This methodology would consider LL a "fast-grower".

P/E/GROWTH RATIO: [PASS]

The investor should examine the P/E (13.36) relative to the growth rate (26.50%), based on the average of the 3, 4 and 5 year historical eps growth rates, for a company. This is a quick way of determining the fairness of the price. In this particular case, the P/E/G ratio for LL (0.50) makes it favorable.

SALES AND P/E RATIO: [PASS]

For companies with sales greater than $1 billion, this methodology likes to see that the P/E ratio remain below 40. Large companies can have a difficult time maintaining a growth high enough to support a P/E above this threshold. LL, whose sales are $1,061.1 million, needs to have a P/E below 40 to pass this criterion. LL's P/E of (13.36) is considered acceptable.

EPS GROWTH RATE: [PASS]

This methodology favors companies that have several years of fast earnings growth, as these companies have a proven formula for growth that in many cases can continue many more years. This methodology likes to see earnings growth in the range of 20% to 50%, as earnings growth over 50% may be unsustainable. The EPS growth rate for LL is 26.5%, based on the average of the 3, 4 and 5 year historical eps growth rates, which is acceptable.

TOTAL DEBT/EQUITY RATIO: [PASS]

This methodology would consider the Debt/Equity ratio for LL (0.00%) to be wonderfully low (equity is at least ten times debt). This ratio is one quick way to determine the financial strength of the company.

FREE CASH FLOW: [NEUTRAL]

The Free Cash Flow/Price ratio, though not a requirement, is considered a bonus if it is above 35%. A positive Cash Flow (the higher the better) separates a wonderfully reliable investment from a shaky one. This methodology prefers not to invest in companies that rely heavily on capital spending. This ratio for LL (-2.50%) is too low to add to the attractiveness of the stock. Keep in mind, however, that it does not adversely affect the company as it is a bonus criteria.

NET CASH POSITION: [NEUTRAL]

Another bonus for a company is having a Net Cash/Price ratio above 30%. Lynch defines net cash as cash and marketable securities minus long term debt. According to this methodology, a high value for this ratio dramatically cuts down on the risk of the security. The Net Cash/Price ratio for LL (3.68%) is too low to add to the attractiveness of this company. Keep in mind, however, that it does not adversely affect the company as it is a bonus criteria.

CHART INDUSTRIES, INC.

Profile

Strategy: Growth/Value Investor
Based on: James P. O'Shaughnessy

Chart Industries, Inc. (Chart) is a diversified manufacturer of engineered equipment engineered equipment for the industrial gas, energy, and biomedical industries. The Company's equipment and engineered systems are used for low-temperature and cryogenic applications. It operates through three segments: Energy & Chemicals (E&C), Distribution & Storage (D&S) and BioMedical. Its products include vacuum insulated containment vessels, heat exchangers, cold boxes and other cryogenic components. Its E&C and D&S segments manufacture products used in energy-related and industrial applications, such as the separation, liquefaction, distribution and storage of hydrocarbon and industrial gases. Through its BioMedical segment, it supplies cryogenic and other equipment used in the medical, biological research and animal breeding industries. The Company, through Thermax, Inc., provides cryogenic fluid vaporizers utilized in industrial gas, petro-chemical and liquefied natural gas applications.

Analysis

Guru Score: 75%

MARKET CAP: [PASS]

The first requirement of the Cornerstone Growth Strategy is that the company has a market capitalization of at least $150 million. This will screen out the companies that are too illiquid for most investors, but still include a small growth company. GTLS, with a market cap of $1,018 million, passes this criterion.

EARNINGS PER SHARE PERSISTENCE: [PASS]

The Cornerstone Growth methodology looks for companies that show persistent earnings growth without regard to magnitude. To fulfill this requirement, a company's earnings must increase each year for a five year period. GTLS, whose annual EPS before extraordinary items for the last 5 years (from earliest to the most recent fiscal year) were 0.69, 1.47, 2.36, 2.60 and 2.67, passes this test.

PRICE/SALES RATIO: [PASS]

The Price/Sales ratio should be below 1.5. This value criterion, coupled with the growth criterion, identify growth stocks that are still cheap to buy. GTLS's Price/Sales ratio of 0.87, based on trailing 12 month sales, passes this criterion.

RELATIVE STRENGTH: [FAIL]

The final criterion for the Cornerstone Growth Strategy requires that the Relative Strength of the company be among the top 50 of the stocks screened using the previous criterion. This gives you the opportunity to buy the growth stocks you are searching for just as the market is embracing them. GTLS has a relative strength of 20. This does not pass the final criterion. As a result, this methodology would not consider the stock even though it passed the previous three criteria.

WORLD ACCEPTANCE CORP.

Profile

Strategy: Growth Investor
Based on: Martin Zweig

World Acceptance Corporation operates a small-loan consumer finance business in fourteen states and Mexico. The Company is engaged in the small-loan consumer finance business, offering short-term small loans, medium-term larger loans, related credit insurance and ancillary products and services to individuals. The Company offers standardized installment loans of between $300 and $4,000 through 1,271 offices in Alabama, Georgia, Illinois, Indiana, Kentucky, Louisiana, Mississippi, Missouri, New Mexico, Oklahoma, South Carolina, Texas, Tennessee, Wisconsin and Mexico as of March 31, 2014. The Company serves individuals with limited access to consumer credit from banks, credit unions, other consumer finance businesses and credit card lenders. In the United States offices, the Company also offers income tax return preparation services to its customers and others.

Analysis

Guru Score: 85%

P/E RATIO: [PASS]

The P/E of a company must be greater than 5 to eliminate weak companies, but not more than 3 times the current Market P/E because the situation is much too risky, and never greater than 43. WRLD's P/E is 5.06, based on trailing 12 month earnings, while the current market PE is 18.00. Therefore, it passes the first test.

REVENUE GROWTH IN RELATION TO EPS GROWTH: [FAIL]

Revenue Growth must not be substantially less than earnings growth. For earnings to continue to grow over time they must be supported by a comparable or better sales growth rate and not just by cost cutting or other non-sales measures. WRLD's revenue growth is 5.46%, while it's earnings growth rate is 21.28%, based on the average of the 3, 4 and 5 year historical eps growth rates. Therefore, WRLD fails this criterion.

SALES GROWTH RATE: [PASS]

Another important issue regarding sales growth is that the rate of quarterly sales growth is rising. To evaluate this, the change from this quarter last year to the present quarter (7.1%) must be examined, and then compared to the previous quarter last year compared to the previous quarter (-4.3%) of the current year. Sales growth for the prior must be greater than the latter. For WRLD this criterion has been met.

The earnings numbers of a company should be examined from various different angles. Three of these angles are stability in the trend of earnings, earnings persistence, and earnings acceleration. To evaluate stability, the stock has to pass the following four criteria.

CURRENT QUARTER EARNINGS: [PASS]

The first of these criteria is that the current EPS be positive. WRLD's EPS ($5.34) pass this test.

QUARTERLY EARNINGS ONE YEAR AGO: [PASS]

The EPS for the quarter one year ago must be positive. WRLD's EPS for this quarter last year ($3.53) pass this test.

POSITIVE EARNINGS GROWTH RATE FOR CURRENT QUARTER: [PASS]

The growth rate of the current quarter's earnings compared to the same quarter a year ago must also be positive. WRLD's growth rate of 51.27% passes this test.

EARNINGS GROWTH RATE FOR THE PAST SEVERAL QUARTERS: [FAIL]

Compare the earnings growth rate of the previous three quarters with long-term EPS growth rate. Earnings growth in the previous 3 quarters should be at least half of the long-term EPS growth rate. Half of the long-term EPS growth rate for WRLD is 10.64%. This should be less than the growth rates for the 3 previous quarters which are 17.11%, 24.44% and 1.52%. WRLD does not pass this test, which means that it does not have good, reasonably steady earnings.

This strategy looks at the rate which earnings grow and evaluates this rate of growth from different angles. The 4 tests immediately following are detailed below.

EPS GROWTH FOR CURRENT QUARTER MUST BE GREATER THAN PRIOR 3 QUARTERS: [PASS]

If the growth rate of the prior three quarter's earnings, 13.98%, (versus the same three quarters a year earlier) is less than the growth rate of the current quarter earnings, 51.27%, (versus the same quarter one year ago) then the stock passes.

EPS GROWTH FOR CURRENT QUARTER MUST BE GREATER THAN THE HISTORICAL GROWTH RATE: [PASS]

The EPS growth rate for the current quarter, 51.27% must be greater than or equal to the historical growth which is 21.28%. WRLD would therefore pass this test.

EARNINGS PERSISTENCE: [PASS]

Companies must show persistent yearly earnings growth. To fulfill this requirement a company's earnings must increase each year for a five year period. WRLD, whose annual EPS growth before extraordinary items for the previous 5 years (from the earliest to the most recent fiscal year) were 5.63, 6.59, 8.01, 9.60 and 11.90, passes this test.

LONG-TERM EPS GROWTH: [PASS]

One final earnings test required is that the long-term earnings growth rate must be at least 15% per year. WRLD's long-term growth rate of 21.28%, based on the average of the 3, 4 and 5 year historical eps growth rates, passes this test.

INSIDER TRANSACTIONS: [PASS]

A factor that adds to a stock's attractiveness is if insider buy transactions number 3 or more, while insider sell transactions are zero. Zweig calls this an insider buy signal. For WRLD, this criterion has not been met (insider sell transactions are 245, while insiders buying number 181). Despite the fact that insider sells out number insider buys for this company, Zweig considers even one insider buy transaction enough to prevent an insider sell signal, therefore there is not an insider sell signal and the stock passes this criterion.

SANTANDER CONSUMER USA HOLDINGS INC

Profile

Strategy: Contrarian Investor
Based on: David Dreman

Santander Consumer USA Holdings Inc. is a holding company. The Company is a specialized consumer finance company focused on vehicle finance and unsecured consumer lending products. The Company offers various auto financing products and services to Chrysler customers and dealers under the Chrysler Capital brand. These products and services include consumer retail installment contracts and leases, as well as dealer loans for inventory, construction, real estate, working capital and revolving lines of credit. The Company also originates vehicle loans through a Web-based direct lending program, purchases vehicle retail installment contracts and services automobile and recreational and marine vehicle portfolios for other lenders. Its products and services include vehicle finance, and origination and servicing.

Analysis

Guru Score: 90%

MARKET CAP: [PASS]

Medium to large-sized companies (the largest 1500 companies) should be chosen, because they are more in the public eye. Furthermore, the investor is exposed to less risk of "accounting gimmickry", and companies of this size have more staying power. SC has a market cap of $8,858 million, therefore passing the test.

EARNINGS TREND: [PASS]

A company should show a rising trend in the reported earnings for the most recent quarters. SC's EPS for the past 2 quarters, (from earliest to most recent quarter) 0.70, 0.81 have been increasing, and therefore the company passes this test.

EPS GROWTH RATE IN THE IMMEDIATE PAST AND FUTURE: [PASS]

This methodology likes to see companies with an EPS growth rate higher than the S&P in the immediate past and a likelihood that this trend will continue in the near future. SC passes this test as its EPS growth rate over the past 6 months (50.00%) has beaten that of the S&P (-9.96%). SC's estimated EPS growth for the current year is (26.98%), which indicates the company is expected to experience positive earnings growth. As a result, SC passes this test.

This methodology would utilize four separate criteria to determine if SC is a contrarian stock. In order to eliminate weak companies we have stipulated that the stock should pass at least two of the following four major criteria in order to receive "Some Interest".

P/E RATIO: [PASS]

The P/E of a company should be in the bottom 20% of the overall market. SC's P/E of 9.05, based on trailing 12 month earnings, meets the bottom 20% criterion (below 12.42), and therefore passes this test.

PRICE/CASH FLOW (P/CF) RATIO: [PASS]

The P/CF of a company should be in the bottom 20% of the overall market. SC's P/CF of 4.53 meets the bottom 20% criterion (below 7.11) and therefore passes this test.

PRICE/BOOK (P/B) VALUE: [FAIL]

The P/B value of a company should be in the bottom 20% of the overall market. SC's P/B is currently 2.25, which does not meet the bottom 20% criterion (below 1.01), and it therefore fails this test.

PRICE/DIVIDEND (P/D) RATIO: [FAIL]

The P/D ratio for a company should be in the bottom 20% of the overall market (that is the yield should be in the top 20%). SC's P/D of 41.32 does not meet the bottom 20% criterion (below 19.84), and it therefore fails this test.

This methodology maintains that investors should look for as many healthy financial ratios as possible to ascertain the financial strength of the company. These criteria are detailed below.

PAYOUT RATIO: [PASS]

A good indicator that a company has the ability to raise its dividend is a low payout ratio. The payout ratio for SC is 5.37%, while its historical payout ratio has been 9.70%. Therefore, it passes the payout criterion.

RETURN ON EQUITY: [PASS]

The company should have a high ROE, as this helps to ensure that there are no structural flaws in the company. This methodology feels that the ROE should be greater than the top one third of ROE from among the top 1500 large cap stocks, which is 16.89%, and would consider anything over 27% to be staggering. The ROE for SC of 28.83% is high enough to pass this criterion.

PRE-TAX PROFIT MARGINS: [PASS]

This methodology looks for pre-tax profit margins of at least 8%, and considers anything over 22% to be phenomenal. SC's pre-tax profit margin is 23.91%, thus passing this criterion.

YIELD: [FAIL]

The company in question should have a yield that is high and that can be maintained or increased. SC's current yield is 2.42%, while the market yield is 2.65%. SC fails this test.

SASOL LIMITED (ADR)

Profile

Strategy: Growth/Value Investor
Based on: James P. O'Shaughnessy

Sasol Limited (Sasol) is a South Africa-based international integrated energy and chemicals company. The Company develops and commercializes technologies, builds and operates facilities to produce a range of product streams, including liquid fuels, high-value chemicals and low-carbon electricity. The Company's operations are organized into three focused business clusters: South African Energy Cluster; International Energy Cluster and Chemical Cluster. The South African Energy Cluster is involved in coal mining, gas production, synfuels manufacturing and oil refining. The International Energy Cluster manages the Company's oil and gas business outside South Africa. The Chemical Cluster is involved in making polymers, solvents, olefins and surfactants and other chemicals.

Analysis

Guru Score: 75%

MARKET CAP: [PASS]

The first requirement of the Cornerstone Growth Strategy is that the company has a market capitalization of at least $150 million. This will screen out the companies that are too illiquid for most investors, but still include a small growth company. SSL, with a market cap of $23,049 million, passes this criterion.

EARNINGS PER SHARE PERSISTENCE: [PASS]

The Cornerstone Growth methodology looks for companies that show persistent earnings growth without regard to magnitude. To fulfill this requirement, a company's earnings must increase each year for a five year period. SSL, whose annual EPS before extraordinary items for the last 5 years (from earliest to the most recent fiscal year) were 2.15, 2.66, 3.10, 3.46 and 3.91, passes this test.

PRICE/SALES RATIO: [PASS]

The Price/Sales ratio should be below 1.5. This value criterion, coupled with the growth criterion, identify growth stocks that are still cheap to buy. SSL's Price/Sales ratio of 1.40, based on trailing 12 month sales, passes this criterion.

RELATIVE STRENGTH: [FAIL]

The final criterion for the Cornerstone Growth Strategy requires that the Relative Strength of the company be among the top 50 of the stocks screened using the previous criterion. This gives you the opportunity to buy the growth stocks you are searching for just as the market is embracing them. SSL has a relative strength of 30. This does not pass the final criterion. As a result, this methodology would not consider the stock even though it passed the previous three criteria.

MARCUS & MILLICHAP INC

Profile

Strategy: Small-Cap Growth Investor
Based on: Motley Fool

Marcus & Millichap, Inc. is a brokerage firm specializing in commercial real estate investment sales, financing, research and advisory services. The Company also offers market research, consulting and advisory services to developers, lenders, owners and investors. It also offers two services to its clients: commercial real estate investment brokerage and financing. The Company divides the commercial real estate market into three segments by investment: Private client segment, which include properties with prices under $10 million; Hybrid segment, which include properties with prices equal to or over $10 million and less than $20 million, and Institutional segment, which include properties with prices of $20 million and above. As of December 31, 2014, the Company had nearly 1,500 investment sales and financing professionals in 78 offices in the United States and Canada that provide investment brokerage and financing services to sellers and buyers of commercial real estate.

Analysis

Guru Score: 76%

PROFIT MARGIN: [PASS]

This methodology seeks companies with a minimum trailing 12 month after tax profit margin of 7%. The companies that pass this criterion have strong positions within their respective industries and offer greater shareholder returns. A true test of the quality of a company is that they can sustain this margin. MMI's profit margin of 9.34% passes this test.

RELATIVE STRENGTH: [PASS]

The investor must look at the relative strength of the company in question. Companies whose relative strength is 90 or above (that is, the company outperforms 90% or more of the market for the past year), are considered attractive. Companies whose price has been rising much quicker than the market tend to keep rising. MMI, with a relative strength of 95, satisfies this test.

COMPARE SALES AND EPS GROWTH TO THE SAME PERIOD LAST YEAR: [PASS]

Companies must demonstrate both revenue and net income growth of at least 25% as compared to the prior year. These growth rates give you the dynamic companies that you are looking for. These rates for MMI (105.88% for EPS, and 27.88% for Sales) are good enough to pass.

INSIDER HOLDINGS: [PASS]

MMI's insiders should own at least 10% (they own 63.33% ) of the company's outstanding shares which is extremely attractive since the minimum requirement is 10%. A high percentage indicates that the insiders are confident that the company will do well.

CASH FLOW FROM OPERATIONS: [PASS]

A positive cash flow is typically used for internal expansion, acquisitions, dividend payments, etc. A company that generates rather than consumes cash is in much better shape to fund such activities on their own, rather than needing to borrow funds to do so. MMI's free cash flow of $1.77 per share passes this test.

PROFIT MARGIN CONSISTENCY: [FAIL]

The profit margin in the past must be consistently increasing. The profit margin of MMI has been inconsistent in the past three years (Current year: 8.66%, Last year: 1.88%, Two years ago: 7.24%), which is unacceptable. This inconsistency will carryover directly to the company's bottom line, or earnings per share.

R&D AS A PERCENTAGE OF SALES: [NEUTRAL]

This criterion is not critically important for companies that are not high-tech or medical stocks because they are not as R&D dependant as companies within those sectors. Not much emphasis should be placed on this test in MMI's case.

CASH AND CASH EQUIVALENTS: [PASS]

MMI's level of cash $149.2 million passes this criteria. If a company is a cash generator, like MMI, it has the ability to pay off debt (if it has any) or acquire other companies. Most importantly, good operations generate cash.

ACCOUNT RECEIVABLE TO SALES: [PASS]

This methodology wants to make sure that a company's accounts receivable do not get significantly out of line with sales. It's a warning sign if a company's accounts receivable relative to sales increases significantly when compared to the previous year. Up to a 30% increase is allowed, but no more. Accounts Receivable to Sales for MMI was 0.80% last year, while for this year it is 0.93%. Although the AR to sales is rising, it is below the max 30% that is allowed. The investor can still consider the stock if all other criteria appear very attractive.

LONG TERM DEBT/EQUITY RATIO: [FAIL]

MMI's trailing twelve-month Debt/Equity ratio (8.01%) is too high, according to this methodology. You can find other more superior companies that do not have to borrow money in order to grow.

"THE FOOL RATIO" (P/E TO GROWTH): [FAIL]

The "Fool Ratio" is an extremely important aspect of this analysis. The methodology says consider holding the shares when the company's Fool Ratio is greater than 0.65 (MMI's is 0.69), but initial purchases in this range are unfavorable.

The following criteria for MMI are less important which means you would place less emphasis on them when making your investment decision using this strategy:

AVERAGE SHARES OUTSTANDING: [PASS]

MMI has not been significantly increasing the number of shares outstanding within recent years which is a good sign. MMI currently has 39.0 million shares outstanding. This means the company is not taking any measures, with regards to the number of shares, that will dilute or devalue the stock.

SALES: [FAIL]

Companies with sales less than $500 million should be chosen. It is among these small-cap stocks that investors can find "an uncut gem", ones that institutions won't be able to buy yet. MMI's sales of $604.1 million based on trailing 12 month sales, are too high and would therefore fail the test. It is companies with $500 million or less in sales that are most likely to double or triple in size in the next few years.

DAILY DOLLAR VOLUME: [PASS]

MMI passes the Daily Dollar Volume (DDV of $8.6 million) test. It is required that this number be less than $25 million because these are the stocks that remain relatively undiscovered by institutions. "You'll be scoring touchdowns against the big guys on your turf."

PRICE: [PASS]

This is a very insignificant criterion for this methodology. But basically, low prices are chosen because "small numbers multiply more rapidly than large ones" and the potential for big returns expands. MMI with a price of $47.19 passes the price test, even though it doesn't fall in the preferred range. The price should be above $7 in order to eliminate penny stocks and below $20 since most stocks in this price range are undiscovered by the institutions.

INCOME TAX PERCENTAGE: [PASS]

MMI's income tax paid expressed as a percentage of pretax income this year was (40.31%) and last year (62.63%) are greater than 20% which is an acceptable level. If the tax rate is below 20% this could mean that the earnings that were reported were unrealistically inflated due to the lower level of income tax paid. This is a concern.

CREDIT ACCEPTANCE CORP.

Profile

Strategy: Growth Investor
Based on: Martin Zweig

Credit Acceptance Corporation (Credit Acceptance) is a provider of financing programs to automobile dealers that enable them to sell vehicles to consumers. The Company's financing programs are offered through a nationwide network of automobile dealers; from repeat and referral sales generated by customers, and from sales to customers responding to advertisements for it products. The Company has two programs: the Portfolio Program and the Purchase Program. Under the Portfolio Program, it advances money to dealer (Dealer Loan) in exchange for the right to service the underlying consumer loans. Under the Purchase Program, the Company buys the consumer loans from the dealer (Purchased Loan) and keeps all amounts collected from the consumer. Its target market is independent and franchised automobile dealers in the United States. It provides dealers the ability to offer vehicle service contracts to consumers through its relationships with third-party providers (TPPs).

Analysis

Guru Score: 92%

P/E RATIO: [PASS]

The P/E of a company must be greater than 5 to eliminate weak companies, but not more than 3 times the current Market P/E because the situation is much too risky, and never greater than 43. CACC's P/E is 17.30, based on trailing 12 month earnings, while the current market PE is 18.00. Therefore, it passes the first test.

REVENUE GROWTH IN RELATION TO EPS GROWTH: [FAIL]

Revenue Growth must not be substantially less than earnings growth. For earnings to continue to grow over time they must be supported by a comparable or better sales growth rate and not just by cost cutting or other non-sales measures. CACC's revenue growth is 12.65%, while it's earnings growth rate is 20.05%, based on the average of the 3, 4 and 5 year historical eps growth rates. Therefore, CACC fails this criterion.

SALES GROWTH RATE: [PASS]

Another important issue regarding sales growth is that the rate of quarterly sales growth is rising. To evaluate this, the change from this quarter last year to the present quarter (9.8%) must be examined, and then compared to the previous quarter last year compared to the previous quarter (5.6%) of the current year. Sales growth for the prior must be greater than the latter. For CACC this criterion has been met.

The earnings numbers of a company should be examined from various different angles. Three of these angles are stability in the trend of earnings, earnings persistence, and earnings acceleration. To evaluate stability, the stock has to pass the following four criteria.

CURRENT QUARTER EARNINGS: [PASS]

The first of these criteria is that the current EPS be positive. CACC's EPS ($3.41) pass this test.

QUARTERLY EARNINGS ONE YEAR AGO: [PASS]

The EPS for the quarter one year ago must be positive. CACC's EPS for this quarter last year ($2.12) pass this test.

POSITIVE EARNINGS GROWTH RATE FOR CURRENT QUARTER: [PASS]

The growth rate of the current quarter's earnings compared to the same quarter a year ago must also be positive. CACC's growth rate of 60.85% passes this test.

EARNINGS GROWTH RATE FOR THE PAST SEVERAL QUARTERS: [PASS]

Compare the earnings growth rate of the previous three quarters with long-term EPS growth rate. Earnings growth in the previous 3 quarters should be at least half of the long-term EPS growth rate. Half of the long-term EPS growth rate for CACC is 10.02%. This should be less than the growth rates for the 3 previous quarters, which are 19.53%, 22.91%, and 24.29%. CACC passes this test, which means that it has good, reasonably steady earnings.

This strategy looks at the rate which earnings grow and evaluates this rate of growth from different angles. The 4 tests immediately following are detailed below.

EPS GROWTH FOR CURRENT QUARTER MUST BE GREATER THAN PRIOR 3 QUARTERS: [PASS]

If the growth rate of the prior three quarter's earnings, 22.32%, (versus the same three quarters a year earlier) is less than the growth rate of the current quarter earnings, 60.85%, (versus the same quarter one year ago) then the stock passes.

EPS GROWTH FOR CURRENT QUARTER MUST BE GREATER THAN THE HISTORICAL GROWTH RATE: [PASS]

The EPS growth rate for the current quarter, 60.85% must be greater than or equal to the historical growth which is 20.05%. CACC would therefore pass this test.

EARNINGS PERSISTENCE: [PASS]

Companies must show persistent yearly earnings growth. To fulfill this requirement a company's earnings must increase each year for a five year period. CACC, whose annual EPS growth before extraordinary items for the previous 5 years (from the earliest to the most recent fiscal year) were 5.67, 7.07, 8.58, 10.54 and 11.92, passes this test.

LONG-TERM EPS GROWTH: [PASS]

One final earnings test required is that the long-term earnings growth rate must be at least 15% per year. CACC's long-term growth rate of 20.05%, based on the average of the 3, 4 and 5 year historical eps growth rates, passes this test.

INSIDER TRANSACTIONS: [PASS]

A factor that adds to a stock's attractiveness is if insider buy transactions number 3 or more, while insider sell transactions are zero. Zweig calls this an insider buy signal. For CACC, this criterion has not been met (insider sell transactions are 397, while insiders buying number 66). Despite the fact that insider sells out number insider buys for this company, Zweig considers even one insider buy transaction enough to prevent an insider sell signal, therefore there is not an insider sell signal and the stock passes this criterion.


Watch List

The Watch List contains the highest scoring stocks according to our guru consensus system that are not currently in the Hot List portfolio. We provide this list both for informational purposes and for investors who are not comfortable with a portfolio of ten stocks.

Ticker	Company Name	Industry	Guru Score
JLL	JONES LANG LASALLE INC	Real Estate Operations	99
UVE	UNIVERSAL INSURANCE HOLDINGS, INC.	Insurance (Prop. & Casualty)	87
FL	FOOT LOCKER, INC.	Retail (Apparel)	74
NOV	NATIONAL-OILWELL VARCO, INC.	Oil Well Services & Equipment	70
PNFP	PINNACLE FINANCIAL PARTNERS	Regional Banks	65
BOFI	BOFI HOLDING, INC.	Regional Banks	53
WDC	WESTERN DIGITAL CORP	Computer Storage Devices	51
GIII	G-III APPAREL GROUP, LTD.	Apparel/Accessories	50
BMA	BANCO MACRO SA (ADR)	Money Center Banks	49
MPC	MARATHON PETROLEUM CORP	Oil & Gas Operations	47


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