1. USF MBA Investment Club Suggested Stock Screening Strategies Compiled by Brian Chatagnier

2. Screening Parameters Some suggested parameters: Some suggested parameters: Market Cap - $250M Min Market Cap - $250M Min Price/Sales between 2 & 9 (below 2 can indicate value stocks) Price/Sales between 2 & 9 (below 2 can indicate value stocks) Revenue Growth- 15% min over 5 years, or 20% over 1 yr Revenue Growth- 15% min over 5 years, or 20% over 1 yr ROA- 8% min ROA- 8% min Current Ratio above 1.5 Current Ratio above 1.5

3. Example Screening Yahoo! screener results (www.screen.yahoo.com): Yahoo! screener results (www.screen.yahoo.com): Market Cap- $250M+ Market Cap- $250M+ Revenue-100M+ Revenue-100M+ P/E Between 10 & 30 P/E Between 10 & 30 P/S Between 0 & 10 P/S Between 0 & 10 Analyst Estimated 1yr growth above 20% Analyst Estimated 1yr growth above 20% Analyst Estimated 5yr growth above 10% Analyst Estimated 5yr growth above 10%

4. Example Screening USAA Screening (www.usaa.com) USAA Screening (www.usaa.com) Mid-Mega Caps Mid-Mega Caps ROA > 10% ROA > 10% ROA 5yr Avg > 10% ROA 5yr Avg > 10% Price / Sales > 2 Price / Sales > 2 Current Ratio > 2 Current Ratio > 2

5. Diversification These screening parameters return companies from all different industries These screening parameters return companies from all different industries

6. Further Analysis How much time can we devote to analyze each individual security? How much time can we devote to analyze each individual security? How much weight do we give broader industrial sectors? How much weight do we give broader industrial sectors?