Only 1 Stock Passes This Tough Screenhttp://www.fool.com/investing/small-cap/2011/11/11/only-1-stock-passes-this-tough-screen.aspx Rex Moore
November 11, 2011
This article is part of our Rising Star Portfolios series.
Today, my search continues for some great small- and mid-cap stocks to add to my real-money "multivitamin" portfolio. Yesterday, I revealed the results for this month's Foolish 8 screen and came up with eight candidates. Today, we turn to the Modified Foolish 8.
According to the independent American Association of Individual Investors, the Mod 8 has an average annual growth rate of 20.2% from January 1998 through May 2011. The S&P 500 averaged 2.5% annually over that period. (Disclaimer: The AAII methodology involves buying a stock the month it appears on a screen and selling when it's off -- something we'd never do. Still, this performance points to the screen's strong potential.)
Only one company passes the screen this month.
Source: S&P Capital IQ.
Hittite Microwave (Nasdaq: HITT ) dropped off the screen from last month.
LSB is a diversified small cap with two main segments, climate control and chemical. Its agriculture chemical products place it in direct competition with fertilizer powerhouses Terra Nitrogen (NYSE: TNH ) and PotashCorp (NYSE: POT ) . I covered its latest earnings report in depth and came to the conclusion that the 15% sell-off was overdone. Digging deeper: