Reviewing the Potential Wide Moat Companies

Monday, September 18th, 2006 | Stock Research, Wide Moat Companies with 9 Comments

Last week I cranked out a series of posts listing potential wide moat stocks I discovered using a screen based on Phil Town’s Big 5 Numbers.  I figured this week I would start working my way through this list.  My guess is that many of you are already starting to do the same.

For those of you who are followers of Rule #1 investing, I recommend using the great set of free spreadsheets available at the Rule One Investing Community. I particularly recommend the ADVFN based spreadsheet since it pulls in 10 years of data and has all the fundamental data you need to conduct Rule #1 analysis.

I was just about to start my research when I discovered that Justin Brand at ROIC had already done a huge amount of the work that I was about to do.  He uncovered roughly twenty new stocks on my wide moat lists worth further investigation. They include:

  • Apache Corporation (APA)
  • Building Materials Holding Corp. (BMHC)
  • CRA International, Inc. (CRAI)
  • Coventry Health Care, Inc. (CVH)
  • Coldwater Creek Inc. (CWTR)
  • CYTC Corporation (CYTC)
  • Diodes Incorporated (DIOD)
  • Global Payments Inc. (GPN)
  • Hovnanian Enterprises, Inc. (HOV)
  • Hydril Company (HYDL)
  • Lennar Corporation (LEN)
  • M.D.C. Holdings, Inc. (MDC)
  • NovaStar Financial Inc. (NFI)
  • Patterson Companies, Inc. (PDCO)
  • Qualcomm Inc. (QCOM)
  • Encore Wire Corporation (WIRE)
  • Seaboard Corporation (SEB)

I think I’m going to start my research using the twenty some stock Justin thought were truly wide moat companies. Maybe we’ll even find a fat pitch hiding in this list. Stay tuned throughout this week for posts regarding my research on these stocks.


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