spyder, are you curious that all of those results in your screen are in the homebuilding sector? Do you think the way the homebuilder's balance sheets are comprised favors inclusion in your scan and disfavors the inclusion of other companies?
In regards to your short position, you could easily have the right idea here. There is a second part of the Graham Equation that I do not use for trading purposes, but would for longer term holding purposes - and that is value. According to Graham, these three companies are hugely overvalued. For Graham, that meant nothing more than, he wouldn't buy them. For me, it means, I won't hold them very long. Graham calculated value accordingly:
assets - liabilities / outstanding shares = Graham's Value Price
Graham would buy a stock if the actual price was less than his calculated price, and sell when the actual price reached 90% of his calculated price. Of course, Graham didn't have to trade in an over valued market like today.
When I first started running the screen, I too wondered why only stocks in the homebuilder sector appeared in the results. Then I recalled what Warren Buffet said not all that many months ago: He wouldn't buy anything right now. Mr. Buffet was probably referring to the lessons his old mentor Graham had taught him many years ago., and decided the whole market was too overvalued to apply Graham's teachings. Better to wait on the sidelines, or choose another investment vehicle.
It could be that my screen is too strict. It could also mean that the rest of the 12,000 companies traded each day aren't doing as well as they would like us all to believe. Or, it could simply mean the market hasn't contracted enough yet, and we are still in the midst of a Bear Market. Whatever the actual reason turns out to be, I use the Graham Screen for adding stocks to my 'watch list' and then trade them like any other stock once something occurs to focus my interest.
