31 stocks picked for strength：31股力量了

31STOCKSPICKEDFORSTRENGTHABOUTJOHNDORFMANJOHNDORFMAN6175428888FREELANCECOLUMNISTPITTSBURGHTRIBUNEREVIEWJOHNDORFMANISCHAIRMANOFTHUNDERSTORMCAPITALINBOSTONANDASYNDICATEDCOLUMNISTHISFIRMORCLIENTSMAYOWNORTRADESECURITIESDISCUSSEDINTHISCOLUMNBYJOHNDORFMANPUBLISHEDMONDAY,FEBRUARY10,20141118PMQUALCOMMINCQCOM,APIONEERINMOBILEPHONETECHNOLOGY,HASBEENNAMEDABALANCESHEETPOWERHOUSEFORTHENINTHTIMEINMYANNUALASSESSMENTOFCOMPANIESFINANCIALSTRENGTHTHATTIESTHERECORD,SETIN2013BYFORESTLABORATORIESINCFRX,WHICHMISSEDTHECUTTHISYEARAVXCORPAVXOFFOUNTAININN,SC,AMAKEROFELECTRONICCOMPONENTS,ISBACKONTHEHONORROLLFORASIXTHTIMEDOLBYLABORATORIESINCDLBISSALUTEDFORAFIFTHTIMETWENTYEIGHTOTHERCOMPANIESMAKEMYBALANCESHEETPOWERHOUSESLISTALL31WINNERSARELISTEDNEARTHEENDOFTHISCOLUMNABALANCESHEETISACORPORATENETWORTHSTATEMENTITLISTSALLOFACOMPANYSASSETSANDLIABILITIESTHEAMOUNTBYWHICHASSETSEXCEEDLIABILITIESISCALLEDSTOCKHOLDERSEQUITYORBOOKVALUETHISYEAR,IMODIFIEDTHEBALANCESHEETPOWERHOUSECRITERIA,BUTONLYSLIGHTLYTOMAKETHEROSTER,ACOMPANYMUSTHAVEASTOCKMARKETVALUEOF1BILLIONORMOREHAVEATLEAST300MILLIONINCASHORNEARCASHHAVELONGTERMDEBTLESSTHAN200MILLIONHAVETOTALDEBTLESSTHAN5PERCENTOFTOTALCAPITALHAVEEARNINGSOFATLEAST10CENTSASHAREINTHEMOSTRECENTFOURQUARTERSHAVEAQUICKRATIOCURRENTLIQUIDASSETSDIVIDEDBYCURRENTLIABILITIESOF30ORBETTERLOOKBACKIHAVECOMPILEDTHISLISTANNUALLYFROM2001TO2006,ANDAGAINFROM2011TOTHEPRESENTINTHE10YEARSCOVEREDINTHESERIES,IHAVEHANDEDOUT272COMMENDATIONSTO141COMPANIESBUTWHILETHECOMPANIESDESERVEKUDOS,THATDOESNTMEANIRECOMMENDBUYINGTHEIRSTOCKSTHISYEAR,FOREXAMPLE,IRECOMMENDPURCHASEOFSTOCKINONLYTHREEOFTHE31HONOREDCOMPANIESDURING10YEARS,IHAVERECOMMENDED26OFTHESTOCKSWHYDOIRECOMMENDSOFEW,WHENTHECOMPANIESAREOBVIOUSLYEXCELLENTITISBECAUSETHEIREXCELLENCEISNOSECRET,ANDTHEREFOREMANYOFTHESESTOCKSSELLFOR20TO30TIMESEARNINGS,SOMETIMESEVENMORETHEAVERAGE12MONTHGAINONMYRECOMMENDATIONSINTHISSERIESHASBEEN226PERCENT,INCLUDINGA279PERCENTGAINONTHETHREESTOCKSISELECTEDAYEARAGOACTIVISIONBLIZZARDINCWASUP449PERCENTDOLBYLABORATORIES,UP299PERCENTANDBEDBATHBEYONDINC,88PERCENTALLFIGURESARETOTALRETURNSINCLUDINGDIVIDENDSFORCOMPARISON,INTHESAME10YEARS,THESTANDARDPOORS500INDEXHASAVERAGEDA75PERCENTRETURNINTHELATESTYEARFEB12,2013,THROUGHFEBRUARY7,2014,TOBEEXACT,ITRETURNED207PERCENTBEARINMINDTHATTHEPERFORMANCEFIGURESFORMYCOLUMNRECOMMENDATIONSARETHEORETICALANDDONTREFLECTTRADINGCOSTSORTAXESPASTPERFORMANCEDOESNTPREDICTFUTURERESULTSANDTHERESULTSOFMYCOLUMNPICKSSHOULDNEVERBECONFUSEDWITHFIGURESFORPORTFOLIOSIRUNFORCLIENTSHONORROLLHEREISTHEFULLLISTOFBALANCESHEETPOWERHOUSESASOFEARLY2014TOCONSERVESPACE,IOMITFULLCORPORATENAMESNINETIMEWINNERQUALCOMMQCOMSIXTIMEWINNERAVXAVXFIVETIMEWINNERDOLBYLABORATORIESDLBFOURTIMEWINNERCOGNIZANTTECHNOLOGYCTSHTHREETIMEWINNERSMKSINSTRUMENTSMKSI,SKYWORKSSOLUTIONSSWKS,SEIINVESTMENTSSEIC,ANDINTUITIVESURGICALISRGTWOTIMEWINNERSAKAMAITECHNOLOGIESAKAM,ALEXIONPHARMACEUTICALSALXN,CREECREE,ANDNVIDIANVDAFIRSTTIMEWINNERSAVAGOTECHNOLOGIESAVGO,CHIPOTLEMEXICANGRILLCMG,CONVERGYSCVG,INTERPARFUMSIPAR,INTERNATIONALRECTIFIERIRF,IPGPHOTONICSIPGP,LINKEDINLNKD,LULULEMONATHLETICALULUALSOMARVELLTECHNOLOGYMRVL,MELLANEXTECHNOLOGIESMLNX,MICHAELKORSHOLDINGSKORS,MYRIADGENETICSMYGN,PLANTRONICSPLT,QLOGICQLGC,SYNAPTICSSYNA,TROWEPRICEGROUPTROW,TECHNETECH,TESSERATECHNOLOGIESTSRA,ANDZEBRATECHNOLOGIESZBRAFORESTLABS,WHICHHADMADEEVERYPREVIOUSLIST,MISSEDTHISYEARBECAUSEITSQUICKRATIOWASALITTLEBELOW30MICROSOFTCORP,WHICHMADETHELISTSIXTIMESINTHEPAST,DIDNTMAKEITTHISYEARASITSDEBTISTOOHIGHSURPRISINGLY,APPLEINCAAPL,FAMOUSFORITSGIANTCASHHOLDING,DIDNTMAKETHECUTEITHERITEXCEEDSTHECASHREQUIREMENTMANYTIMESOVER,BUTHASABOUT17BILLIONINDEBT,WHICHAMOUNTSTO13PERCENTOFEQUITYRECOMMENDATIONSTHISYEARILIKEINTERPARFUMSINCIPAR,ANEWYORKCOMPANYTHATMAKESPERFUMEUNDERLICENSINGAGREEMENTSWITHPRESTIGIOUSBRANDS,SUCHASBURBERRY,VANKLEEFARPELS,DUNHILLANDKARLLAGERFELDISEEMERITINQLOGICCORPTHEALISAVIEJA,CALIF,COMPANYMAKESCOMPONENTSFORSERVERSANDNETWORKINGEQUIPMENTFINALLY,IFAVORSIXTIMEWINNERAVX,WHICHLOOKSINEXPENSIVEWHENYOUCOMPARETHESTOCKPRICEWITHPERSHARESALESORWITHBOOKVALUETHEMAJORITYOFTHESTOCKISOWNEDBYKYOCERACORPOFKYOTO,JAPANICAUTIONAGAINSTBUYINGSTOCKINLINKEDINCORPLNKDTHOUGHTHEWEBSITEISPOPUL