Stock Quotes in this Article: FFHL, SVLF

 The following commentary comes from an independent investor or market observer as part of TheStreet’s guest contributor program, which is separate from the company’s news coverage. The opinions expressed are those of the author and do not represent the views of TheStreet or its management.

NEW YORK (Scott's Investments) -- On a monthly basis I conduct a close replication of AAII's (American Association of Individual Investors) Shadow Stock screen. The goal is to find small, undervalued stocks with high price momentum over the past 52 weeks.

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    The screen and data below are courtesy of Stockscreen123. I use the following screen criteria to identify high momentum value stocks:

    • No over-the-counter stocks 
    • No financial stocks 
    • Market cap > $20 Million and < $200 million 
    • Previous EBITDA quarter and trailing 12 months are positive 
    • Share price > $1 
    • Price/book < 0.80 
    • Price/sales < 1.2 
    • Top 10 stocks are selected based on highest 52-week returns 
    • Minimum average daily volume > 5,000 shares

    The results for this month are below:

    March's list returned an average of 2.23% (excluding dividends, commissions, and taxes).

    Looking at this month's list, Fuwei Films (FFHL) is worthy of further attention. While its 52-week momentum is high, it recently received a delisting notice from Nasdaq.  FFHL's intermediate momentum is a stark contrast to the 52-week momentum: Quarterly returns are -52.04% and one-month returns are -48.14%. For those looking at price momentum and stability, this information should give investors pause.

    Silverleaf Resorts (SVLF) also has high price momentum and solid fundamentals. However, in February SVLF's board agreed to sell SVLF to Cerberus Capital Management for $2.50 share. Thus, any position in SVLF at this point will only serve to place you in the middle of an acquisition with little upside (unless shareholders are successful in fighting the sale of the company).

    At the time of publication, author had no positions in stocks mentioned.

     

    Scott's Investments, focuses on consolidating and tracking free online investment resources for the public with an emphasis on ETFs, portfolio/trading strategies and macroeconomics. Follow Scott's Investments on Twitter.