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The week's question
In December 2024, in the thread "Re: BRK: Why Not XOM?", BreckHutHigh asked the members: "What about the long road trips with kids?" This week it is put to everyone again. The button below opens the small thread re-asking it - read what others have said so far, then give your own answer as an ordinary reply.
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Investment Strategies / Mechanical Investing
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Author: SteadyAim   😊 😞
Number: of 6131 
Subject: Re: Non-Mag7 screen
Date: 08/13/25 6:03 PM
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They make a positive current EPS with negative book value: they don't need any net assets at all in order to make money, like YUM. Unfortunately this gets naively calculated as a negative ROE

Could you invert the ROE to get "equity per return" and then look for the lowest value, a bit like using earnings yield instead of p/e? Would that give you a valid ordering through positive and negative values?

You'd have to screen for EPS>0 and maybe check the results to make sure any odd ones aren't included.

SA
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This community has written 6,115 posts about Mechanical Investing. The article-length ones it recommended most:
Dividend investing · 52 recs · 2025
Non-Mag7 screen · 34 recs · 2025
OT - Div yields and returns · 32 recs · 2024
Using AI to generate backtesting programs · 30 recs · 2025
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