TAM Deep Value Stock Screeners – Overnight Market Update – May 18, 2017

The Acquirer’s Multiple® Valuation Ratio

All stocks are picked using The Acquirer’s Multiple® valuation ratio. The ratio examines several financial statement items that other multiples like the price-to-earnings ratio do not, including debt, preferred stock, and minority interests; and interest, tax, depreciation, amortization and capital expenditures.

The Acquirer’s Multiple® is calculated as follows:

Enterprise Value / Operating Earnings

The Acquirer’s Multiple® was developed by Tobias Carlisle who is the founder and Chief Investment Officer of Carbon Beach Asset Management LLC. He is also the author of Deep Value: Why Activists Investors and Other Contrarians Battle for Control of Losing Corporations (2014, Wiley Finance), and Quantitative Value: A Practitioner’s Guide to Automating Intelligent Investment and Eliminating Behavioral Errors (2012, Wiley Finance). He has extensive experience in investment management, business valuation, public company corporate governance, and corporate law.

TAM Deep Value Stock Screeners – Market Update

The TAM Deep Value Stock Portfolio fell 3.01% overnight to 9.89%. The Russell 3000 (INDEXRUSSELL:RUA) fell 1.89% to 8.67%. The S&P 500 (INDEXSP:.INX) fell 1.82% to 2357. The TAM Deep Value Stock Portfolio leads the Russell 3000 by 1.23% since inception.

In other overnight news from the three TAM Deep Value Stock Screeners:

TAM Large Cap 1000 Stock Screener

This screen shows the top 30 companies in The Acquirer’s Multiple® Large Cap 1000 universe, which is drawn from the largest 1,000 U.S. exchange-traded stocks and ADRs excluding financials and utilities.

Biggest Gainers: Target Corporation (NYSE:TGT) up 0.99%, Tyson Foods, Inc. (NYSE:TSN) up 0.29%.

Biggest Losers: Embraer SA (ADR) (NYSE:ERJ) down 6.42%, Gentex Corporation (NASDAQ:GNTX) down 5.90%.

TAM All Investable Stock Screener

This screen shows the top 30 companies in The Acquirer’s Multiple® All Investable Stocks universe, which includes the largest half of U.S. exchange-traded stocks and ADRs. The screen excludes financials and utilities.

Biggest Gainers: Alliance Holdings GP, L.P. (NASDAQ:AHGP) up 0.07%.

Biggest Losers: Seadrill Partners LLC (NYSE:SDLP) down 6.61%, InterDigital, Inc. (NASDAQ:IDCC) down 6.23%.

TAM Small & Micro Cap Stock Screener

This screen shows the top 30 companies in The Acquirer’s Multiple® Small and Micro Cap Stocks universe, which includes the smallest half of U.S. exchange-traded stocks and ADRs. The screen excludes financials and utilities.

Biggest Gainers: Flanigan’s Enterprises, Inc. (NYSEMKT:BDL) up 3.09%, Natural Alternatives International, Inc. (NASDAQ:NAII) up 2.55%.

Biggest Losers: Goldfield Corp (NYSEMKT:GV) down 7.87%, Cherokee Inc (NASDAQ:CHKE) down 6.83%.

Stocks mentioned include: (NASDAQ:AHGP), (NASDAQ:CHKE), (NASDAQ:GNTX), (NASDAQ:IDCC), (NASDAQ:NAII), (NYSE:ERJ), (NYSE:SDLP), (NYSE:TGT), (NYSE:TSN), (NYSEMKT:BDL), (NYSEMKT:GV).



About the Author

The Acquirer's Multiple
The Acquirer’s Multiple® is the valuation ratio used to find attractive takeover candidates. It examines several financial statement items that other multiples like the price-to-earnings ratio do not, including debt, preferred stock, and minority interests; and interest, tax, depreciation, amortization. The Acquirer’s Multiple® is calculated as follows: Enterprise Value / Operating Earnings* It is based on the investment strategy described in the book Deep Value: Why Activist Investors and Other Contrarians Battle for Control of Losing Corporations, written by Tobias Carlisle, founder of acquirersmultiple.com. The Acquirer’s Multiple® differs from The Magic Formula® Earnings Yield because The Acquirer’s Multiple® uses operating earnings in place of EBIT. Operating earnings is constructed from the top of the income statement down, where EBIT is constructed from the bottom up. Calculating operating earnings from the top down standardizes the metric, making a comparison across companies, industries and sectors possible, and, by excluding special items–earnings that a company does not expect to recur in future years–ensures that these earnings are related only to operations. Similarly, The Acquirer’s Multiple® differs from the ordinary enterprise multiple because it uses operating earnings in place of EBITDA, which is also constructed from the bottom up. Tobias Carlisle is also the Chief Investment Officer of Carbon Beach Asset Management LLC. He's best known as the author of the well regarded Deep Value website Greenbackd, the book Deep Value: Why Activists Investors and Other Contrarians Battle for Control of Losing Corporations (2014, Wiley Finance), and Quantitative Value: A Practitioner’s Guide to Automating Intelligent Investment and Eliminating Behavioral Errors (2012, Wiley Finance). He has extensive experience in investment management, business valuation, public company corporate governance, and corporate law. Articles written for Seeking Alpha are provided by the team of analysts at acquirersmultiple.com, home of The Acquirer's Multiple Deep Value Stock Screener. All metrics use trailing twelve month or most recent quarter data. * The screener uses the CRSP/Compustat merged database “OIADP” line item defined as “Operating Income After Depreciation.”