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Future Blue Chips

An Overview of the Future Blue Chips Investment Strategy

Location of Screen:  The screen was originally discussed in an MSN article by Harry Domash and is run on Sum of Some using the MSN screening tool

Updated: Continually, based on current market data

Inception: Posted in February 2007

Created By: Harry Domash

Harry Domash:

Stock Screen Parameters for the Future Blue Chips Screen

The below bullet points use technical parameters that can automatically be screened.  These parameters are run by Sum of Some using the MSN screening tool.  The text in italics explains how the parameter was defined in the screener.

1) Big Companies: Find companies with large market capitalizations

Parameter: Market Capitalization >= $50 billion

2) S&P: Let the S&P analysts decide the company is worth inclusion into the S&P

Parameter: S&P Index Membership = S&P 500

3) Institutional Investors: Find companies that institutional owners want to have in their portfolio

Parameter: Institutional Ownership > 60%

4) Analysts: Pick companies that the analysts like

Parameter: Mean Recommendation >= Moderate Buy

5) Earnings Growth: Find companies which have solid growth expecatations.  Since this screen is looking for blue chips, the growth may be a bit lower than smaller companies

Parameter: EPS Growth Next 5 Years >= 10

6) Profitable: Find companies that are able to grow from their investments rather than through borrowing or selling stock

Parameter: ROE: 5-Year Average >= 15

7) Debt: Find companies that are in less debt than others in the industry

Parameter: Debt to Equity Ratio <= Industry Average Debt to Equity Ratio

8) Revenue: Find companies that are increasing profits through revenue growth

Parameter: 5-Year Revenue Growth >= 5

9) Trend: Find companies which are in a long-term upward trend

Parameter: Last Price >= 200-Day Moving Average