Ranked by 28-Period Williams %R as of 02/20/09 *
|
Stock |
Reference Date |
% Chg |
Gain in
2009 |
Company |
Industry |
% from Max |
Monthly % Gain |
%R1 |
%R2 |
|
None this week |
Key
|
Passed Recent
Filter |
|
Price declined by
half of stop loss setting |
|
Oversold re
Williams %R (%R2 = most recent) |
|
Overbought
re Williams %R (%R2 = most recent) |
Growth Momentum Stock Screening Criteria
The approach focuses on companies with proven
records of earnings growth while still in a stage of earnings
acceleration. It was developed by a well know author. When screening
for quarterly earning increases, it is important to compare a
quarter to the same quarter last year. Strong industry fundamentals should show up for a number of
companies. The system tries to identify the strong companies
leading the current market cycle. The screen specifies a minimum annual growth
rate of 25% in earnings per share from continuing operations over the last five
years.
A stock needs a catalyst to start a strong price advance.
It is possible to study the
companies passing the preliminary screens to see if any catalysts
exist. A second consideration that the author emphasizes is that
investors should pursue stocks showing strong upward price
movements. The author says that stocks that seem too high-priced and
risky most often go even higher, while stocks that seem cheap often
go even lower. The author's newspaper highlights stocks within 10% of their 52-week high and this
was the criterion established for this screen. The author
found that 95% of the winning stocks had fewer than 25 million shares
outstanding, while the median for the group was 4.6 million. We used a screen
for stocks to have fewer then 20 million shares outstanding.
Relative strength compares the performance of a stock relative to the market as
a whole. The author recommends only looking for stocks with a percentage rank
of 70% or better—stocks that have performed better than 70% of all stocks. A
stock needs a few institutional sponsors for it to show above-market
performance. Three to 10 institutional owners are suggested as a reasonable
minimum number. The final
aspect of the system looks at the overall market
direction.
Information is provided by the American
Association of Individual Investors.