Stock Screener: Gran Colombia Gold


If I don't have any ideas anymore what to buy, I use the stock screener.



Gran Colombia Gold is a high grade gold miner with positive free cash flow of $40 million/annum. Yet it trades at $160 million market capitalization. I believe this stock is an easy double a few years from now. It doesn't have a dividend, but it has huge earnings.











What you want to do is filter on 4 attributes: market cap, P/E, dividend yield and percentage change.



1)
Market Cap: do not choose small companies as they are mostly fraudulent
or don't have sustainable earnings. Don't choose big companies because
these are not volatile enough to get fast profits from. I'd filter
between 200 million and 4 billion.



2) P/E ratio: choose
the companies with the lowest P/E ratio, these companies are dirt cheap
while still having earnings. Cheap is below P/E of 5. But do not choose
below P/E of 2 because those are mostly companies that are going
bankrupt or have bad growth.



3) Dividend yield: always
choose companies that have dividends, because these companies have real
earnings and can prove they have sustainable earnings to reward
investors. The higher the better of course, but don't push it above 7%
as those companies probably don't have the money to pay out dividends on
a regular basis. I'd go for companies with dividends between 3% and 7%.



4) Volatility: don't choose companies that are so volatile. Maximum year over year change should be between the 20% range.

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