Bulkowski’s Fundamental Analysis

CPI: on 08/27/2010

The following article topics are arranged from the best performing fundamentals to the worst.

1. Capital spending. Stocks showing a decrease in capital spending performed twice as well.

2. Long-term debt. Stocks with no long-term debt underperform those with higher debt 100% of the time.

3. Dividends. Stocks not paying a dividend outperform 80% of the time.

4. Price to book value. Stocks with low price to book value perform better than high ratios 78% of the time.

5. Price to cash flow. Stocks with low price to cash flow ratios perform better than high ratios 78% of the time.

6. Price to earnings ratio. Stocks with low price to earnings ratios outperform 71% of the time.

7. Price to sales ratio. Stocks with low price to sales ratios outperform 71% of the time.

8. Return on total capital. Stocks with low ROTC beat high ROTC stocks only 57% of the time except during and after a bear market.

9. Return on shareholders’ equity. Stocks with low ROSE beat those with high ROSE only 49% of the time, but show promise in a bear market.

10. Shares outstanding. Fewer shares outstanding can boost performance the following year.

See Also

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