A Powerful New
Feature
Access to our stock tables, ability
to sort them, and links to sites providing added free information are
now provided. This will greatly enhance the process of selecting a list
of stocks as investment candidates and making a final investment
decision
Stock Tables
Tables providing the most recent data
for all stocks listed in our web site databases can be accessed from the three
tabs below, Income, Income/Growth, and Growth. Data is updated about
once per week, more often when significant changes occur. Changes are
date stamped when introduced.
A
Suggested Sorting Procedure
Sorting
stocks to develop a list of investment candidates is essentially a
process of elimination, or a bottoms up approach. This rapidly reduces
the number of stocks which are worthy of consideration at any given
time. We suggest focusing attention on (sorting out) only those stocks
that satisfy the following criteria:
- Dividend
Percentage (%). Use this criterion if income is an
important factor in the selection process.
- Number
of Years (#YRS) no greater than a threshold depending on
the nature of the stock. A value of about 1.0-2.0 is a good starting
point, but values near zero are desirable.
- Accumulation-Distribution (AC/DIS) less than 4 -- i.e. 3 (neutral), 2 (buying
strength), or 1
(strong buying strength) .
- Consensus
of Analysts (CIA) no larger than 5.0 (i.e. favorable
recommendations; you may want to use a somewhat smaller limit).
- Industry
Rank (IND) no larger than 3 or 4.
- Long Term Growth
(LTGR) no larger than 2 or perhaps 3 if an income stock.
- Growth
Investment Value (GIV) no less than a threshold level
dependent on the type of stock and its earnings growth quality. We
suggest at least 30 for income stocks and 40 or 50 for growth stocks providing little or no dividend.
- Master
Indicator (MI). MI is a penalty function and should be no greater than about 8-10.
- Buy
Flags (BF). You may want to consider only those stocks
which merit flags according to our computer evaluation, which is
based on guidelines similar to those above. It is usually best to
avoid those stocks with an "X"
in the flag column, at least temporarily, since they fall below the
desired performance threshold in at least one major area.
- Price
Change (% CH). We suggest that any stock which has
recently suffered a sharp drop in price should be avoided until a
more favorable price trend develops.
- Percent from
12 month high (%HI).
Stocks trading near their 12 month highs are likely in
uptrends and displaying healthy overall price performance.
You may also want to consider only
those stocks which have Growth Ratings
(GR) of 1 -- i.e. very consistent earnings growth. Predicted Growth Rate
(PR GR) is important if you are interested primarily in stocks
displaying rapidly growing earnings. If your final list of stocks is
still too long after the above exercise, tighten up any of the above
criteria which are particularly important to your own investment
objectives.
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