Not the only one checking Tim Horton's (THI)

Since my last post on the three companies I have been prowling around, The Motley Fool's Jordan DiPietro has also locked in on Tim Horton's, especially given it's favorable valuation. It's a good high level article on Tim Horton's. I'm still digging deeper into the company.

On the prowl again (Tim Horton's, Taiwan Semiconductor, and Power-One)

Unemployment rate reported another nice drop to 8.8% last Friday. I've been monitoring overall economic conditions from oil prices, consumer confidence, housing, and the unemployment rate. Still weary about rising oil prices, but a number of stocks fell into my screen today. My usual screen turned up a lot more stocks than usual this time around, approximately 40 in total. The criteria for the selection:

• P/E < 15 (Looking for stocks trading at a stock multiple below 15x the company's trailing twelve months earnings)
• Return on Assets >20% (For every dollar of assets the company holds, I'm looking for the company to generate at least 20 cents in profit)
• PEG Ratio < 1 (Looking for stocks whose growth prospects are growing faster than the company's P/E)
• Current Ratio > 1 (The company has enough liquid assets to cover it's liabilities)
• Operating Margins > 20% (The company is able to generate at least 20 cents for every dollar of sales after it has paid it's larger expense items such as raw materials and salaries)

Out of the 40, I've narrowed it down to 3 stocks that look promising. Looking to do some research and possibly initiate positions as early as tomorrow. The 3 companies are:

• Tim Horton's (THI): A really nice coffee/doughnut/sandwhich chain in Canada and parts of the US.
• Taiwan Semiconductor (TSM): The company designs and sells semiconductors, integrated circuits, and related equipment.
• Power-One Inc. (PWER): designs and manufactures, power conversion and power management solutions for the renewable energy and communications infrastructure industries.

These companies look to be managed well, at least on paper.

Tim Horton's (THI):

• P/E (ttm): 12.21
• ROA : 28%
• Current Ratio: 2.05x
• Operating Margin: 34.39%

Taiwan Semiconductor (TSM):

• P/E (ttm): 12.09
• ROA: 25.51%
• Current Ratio: 2.26
• Operating Margin: 37.69%

Power-One, Inc. (PWER):

• P/E: 9.18
• ROA: 25.88%
• Current Ratio: 1.75%
• Operating Margin: 25.27%

More analysis and research about these 3 companies to come.