What fundamentals have you found most useful in stock selection? Looking for ratio'd fundamentals like P/E ? P/S ? Debt/Equity ? Cash/Equity ? Debt/Gross Income ? Debt/Net Income ? Debt/Asset ? Others? TIA, Cash
RS (percentile) EPS (percentile) instituional ownership (minimum #) range of float (min and max) Price value (Min and max) Minimum daily volume US stock I hold list size to 100 to 125. I use an Initial Analysis Sheet as well. This determines the TA suitability. The trading stratgy is a one pager with five rules. See attached. For the quality, Worden tested the criterial on the NAZ 100 and got a Sharpe of 60+
Thanks Jack, In terms of your percentile RS and EPS values, is that in relation to your list, the industry for the stock, or all stocks in the market?
I begin with all US stocks (about 15,000). Since I want quality (this means reliable by public standards) I use RS and EPS. Nominally the top 20% (80th percentile and up) provide this. The float is to give me volatility in price. Too manny shares outstanding and the market has no volatility. I like a minimum of 20% in the channel and I take 10% each 4 to 6 day long trend. Institutional holdings help too on the volatility. Financial planners are buy and hold type advisors to institutions. I use this seven part filter to get a list. I stack the stocks according to how I score cycles. Volume is the differentiator. (see attached.) The list has 7's, 0's, and 1's I buy when the score goes from 0 to 7 and sell when the score goes from 4 to 3. The hold is 7,6,5,4 (which is my phone number as you would guess.) When a new stock appears on the list; it is vetted with an Initial Analysis Sheet. This is TA and not fundamental analysis as is the filtering. All of this is explained in an illustrated transcript of a video (cantasia) entitleD: "Putting the Pieces Together". (It can be googled it is too big (135 pages) for ET)
Sales & Earnings growth, toll booth product, sector performance, any new contracts awarded (recent or upcoming), displacements