Hi,
Happy Thursday night!
I wanted to explain to you my favorite stock screener that I look at a few times each week.
It is a screener I built back in early 2025 that allows me to find great stocks at great prices that are very cash-rich!
These are companies that can often weather the storm as they have lots of cash and very little debt.
When you have lots of cash and little debt, you can buy-back stock, you can offer a special dividend, you can reinvest that cash to help grow the bottom line, and you also open yourself up to potentially getting acquired (people like buying businesses that have a lot of cash & little debt).
Here’s the screener:
The exact criteria of this screener is:
Filter | Criteria | Notes (reason) |
|---|---|---|
Market Cap | > 300m | I want to focus on real companies, not turds |
Average Volume | > 3m | I want people involved (1) |
Industries to exclude | Biotech, Banks, Shell Companies, Healthcare, Capital Markets, Oil & Gas, Precious Metals, Utilities, Auto, REIT, Waste, Chemicals, Insurance, Railroads, and Textile | This stuff is boring, and often incredibly difficult to understand all of the moving parts that these businesses have! |
Net Cash (Debt) | > 0 | Enterprise value below market cap |
Dollar Volume | > 50M | I want people involved (2) |
Price Change 1Y | < -30% | Good price potentially |
Country | United States | Countries other than US such as China tend to carry a lot of cash on the books, so it’s hard to spot potential opps. |
This screener allows me to find stocks that have gotten hit hard over the last year that have a ton of cash, little debt, and an enterprise value below their market cap.
I then dig through this list and see if anything makes sense to potentially buy and I use my trading skills to try to time them well!
Some important things I will do:
1) I will take a look at the chart and see if it has sped up to the downside which is preferred. Lots of red days, followed by bigger red days is usually when the “bottom” is close.
2) I want to figure out why the company is down over 30% in the last year and whether the market is maybe over reacting and an opportunity is present.
3) I want to listen to prior conference calls, especially the q&a section and get a good feel for the business.
4) I often will download the financials from Stock Analysis into a CSV and upload to Chatgpt to learn about what is going on in a simplified fashion.
5) I then try to time them as good as possible and put on the trade if I think there is asymmetry in the idea/trade.
From this list, I recently bought The Trade Desk ($TTD)!
This is a stock screener that has allowed me to catch some big over extension trades over the last year which includes a trade on $ZM, $HIMS, and now $TTD.
-Kyle
