I have looked at Quicken's purported NAIC screen from time to time and have had other experienced NAIC investors look at it, and it is, to put it mildly, a crock. Virtually none of its best picks using the NAIC criteria pass even a cursory look at an SSG. I'm surprised NAIC allows Quicken to use their name. It certainly gives a very bad impression of what a good NAIC stock is.
Rather than criticizing in general, let's get specific.
Let's look at their top choices.
1. Cubic Corp. 10 year sales growth 9.8%. Earnings line is all over the map. Shows no ability to manage profits and earnings. Pretax Profits and ROE are also all over the map. Average high PE is 157. This is NOT an NAIC stock.
2. PLMD. I actually looked at this one. It does look okay on the SSG, BUT it's being investigated for fraud by the feds. this is not what NAIC investors are looking for.
3. Business Objects. Growth was good until recently, but one look at the PERT-A, columns R & S, shows that growth recently has been in the low single digits down to negative. This is not what we're looking for.
4. AFCI. Good god, look at page 1 of the SSG. Sales have fallen the past year, earnings and profits are all over the map. PERT-A TTM EPS growth has been negative 90% for the past three quarters. This is a dog by NAIC standards.
I could go on, but why? this is a travesty of the NAIC concepts.
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Price is a crazy and incalculable thing, while Value is an intrinsic and indestructible thing. G.K. Chesterton
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Price is a crazy and incalculable thing, while Value is an intrinsic and indestructible thing. G.K. Chesterton
