GARP is "Growth at a Reasonable Price."
VickreyBrown Investments has teamed up with PSW and we have used their quantitative modeling system to identify 4 of the top value stocks for the 2nd half of 2015. We began with a list of 50 top candidates that made it through their screener, narrowed it down to a sweet 16 round based on which candidates had the best Fundamentals, which we reviewed one by one in our Live Member Chat Room over the past week and now we're down to the final 4.
While each one, of course, is a good stock pick, we are also going to give examples of how you can enhance the returns for each trade using stock options for both leverage AND risk mitigation, using some of the "BE THE HOUSE – Not the Gambler" methods that we teach our Members at Philstockworld.
(WYN) Wyndham Worldwide ($85.02) did not make the cut when we selected (HOT) Starwood Hotels as our favorite hotel stock last November at our Las Vegas Live Seminar but it came up on the screener as the sector has pulled back a bit. HOT ran from $73 to $87 (+19%) before pulling back to $82 while WYN ran from $77 to $94 (22%) before pulling back to $85. That makes WYN what we like to call a "fresh horse" as it has now pulled back more than HOT and the VB screener confirms we're ready to get going again.
Back in November I liked HOT (Sheraton, St Regis, W, Westiin, Le Meridien) the best as they focused more on luxury travelers, which were the segment I expected to pick up first. (IHG) InterContinental Hotels was also in the running but the Holiday Inn part bothered me as I wasn't sure bottom 80% consumers were ready to travel yet.
WYN is more low-end (Ramada, Super-8, Howard Johnsons) but they did very well out of the gate before settling back to $85, which they have been testing for the past two weeks. Vickrey's screener is correct as the value of WYN is better than either of the other two with $529M in earnings…
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