Ideas Brought to You by the Letter F

Before we move into the weekend, I want to review one of my favorite ways to use F-scores. It is a useful tool in all steps and stages of stock selection process but it really shines in finding investments with a little more of a long-shot flavor to them. These are companies that carry more debt than I would usually consider acceptable and that trade at steep discounts to their asset value. A high F-score indicates to me that a company's fundamentals are improving and that it is generating sufficient cash to carry the debt load. In addition, there is a high probability that the two-edged sword of leverage will cut in our favor.

In running the screen for leveraged companies trading below tangible book with high scores, I noted an unusually short list of candidates. Just 24 U.S.-listed names make the final cut. Only eight of these have a market cap in excess of $100 million. There is only one stock with a market cap above the billion dollar mark. As the market has worked higher this year, the list of opportunities for cheap stocks has gotten shorter and smaller....501 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

Read the full story and get access to the Real Money Pro trading floor.

There’s no substitute for a trading floor to get great ideas, so Jim Cramer created a better one at Real Money and blogs there exclusively. We then added legendary hedge fund manager, Doug Kass, with his exclusive Daily Diary and best investing ideas. Staffed with more than 4 dozen investing pros, money managers, journalists and analysts, Real Money Pro gives you a flood of opinions, analysis and actionable trading advice found nowhere else, and allows you to interact directly with each expert.

Already a Subscriber? Please login.

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data provided by Interactive Data. Company fundamental data provided by Morningstar. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by Interactive Data Managed Solutions.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

IDC calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.