Warren Buffett's Big Company Takeover

Description:

I have recently heard that Warren Buffett is interested in buying a large company, between 40 to 60 Billion.

Knowing this, I decided to create a screen on finance.yahoo.com and narrow down the candidates. Working around the limitations of the screener at finance.yahoo.com (and inspired by the links below), I managed to come up with this screen:
a. Company market cap between 40 and 60 billion.
b. Forward PE = 17 percent
d. Current Ratio >= 1
e. Free Cash Flow > 100m
f. No Tech Stocks.

The screen returns me only 8 candidates:
1. TGT -- Target Corporation
2. CAT -- Caterpillar
3. LOW -- Lowe's Companies
4. DD -- Du Pont
5. HON -- Honeywell
6. DOW -- Dow Chemical
7. OXY -- Occidental Petroleum
8. LMT -- Lockheed Martin

Buffett recently sold shares in TGT so maybe we can eliminate that.

Source(s):

1. Inspired by a Fast Money episode where they screened for companies. I don't remember the result, but the process inspired me.

2. Article on investing like a young Warren Buffett:
http://moneycentral.msn.com/content/Investing/Findhotstocks/P90537.asp

3. Screener at finance.yahoo.com

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