Re: [CANSLIM] EPS Growth Rate


From: "Katherine Malm" <kmalm@earthlink.net>
Subject: Re: [CANSLIM] EPS Growth Rate
Date: Mon, 25 Feb 2002 20:02:50 -0600

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Hi Scott,

Here's the official definition. It's not always obvious where the =
numbers come from when looking at DGO's 5 year earnings growth history =
because they use trailing 4 quarters to do the calculation. I usually =
just trust their computers have done all the math properly and go with =
it!!!

Katherine
EARNINGS FIVE-YEAR GROWTH RATE:
This item is calculated by using a least squares regression fit over a =
3-to-5 year period of earnings per share based on a trailing =
four-quarter count. For example, if a stock is currently in its second =
quarter, the first period used in this calculation will consist of the =
sum of Q2 + Q1 (of the current fiscal year) plus Q4 +Q3 (of the prior =
fiscal year).  Each successive period will be based on the next trailing =
four quarters of earnings per share.

The amount of time used to calculate the Growth Rate is based on two =
factors;=20

  a.. Availability of data=20
  b.. Positive earnings=20
If a stock does not have at least three years of positive earnings =
(based on the trailing four-quarter method noted above), an "N/A" will =
appear.=20

The amount of time used for this calculation will consist of at least =
three years but no more than five years of positive earnings per share. =
If a four-quarter period sum is negative, that period and additional =
earnings further back in time, will not be used in the calculation of =
this data item.=20

  ----- Original Message -----=20
  From: Scott Gettis=20
  To: canslim@lists.xmission.com=20
  Sent: Monday, February 25, 2002 7:44 PM
  Subject: [CANSLIM] EPS Growth Rate


  Could someone explain how DGO computes Growth Rate?

  -
  -To subscribe/unsubscribe, email "majordomo@xmission.com"
  -In the email body, write "subscribe canslim" or
  -"unsubscribe canslim".  Do not use quotes in your email.


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<!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN">
<HTML><HEAD>
<META http-equiv=3DContent-Type content=3D"text/html; =
charset=3Dwindows-1252">
<META content=3D"MSHTML 5.50.4807.2300" name=3DGENERATOR>
<STYLE></STYLE>
</HEAD>
<BODY bgColor=3D#ffffff>
<DIV>Hi Scott,</DIV>
<DIV>&nbsp;</DIV>
<DIV>Here's the official definition. It's not always obvious where the =
numbers=20
come from when looking at DGO's 5 year earnings growth history because =
they use=20
trailing 4 quarters to do the calculation. I usually just trust their =
computers=20
have done all the math properly and go with it!!!</DIV>
<DIV>&nbsp;</DIV>
<DIV>Katherine</DIV>
<DIV>
<P><STRONG><FONT face=3DArial color=3D#000080 size=3D3>EARNINGS =
FIVE-YEAR GROWTH=20
RATE:</FONT><BR><FONT size=3D2><FONT face=3DArial>This item is c<FONT=20
color=3D#000080>alculated by using a <FONT color=3D#ff0000>least squares =
regression=20
fit over a 3-to-5 year period of earnings per share based on a trailing=20
four-quarter count.</FONT> For example, if a stock is currently in its =
second=20
quarter, the first period used in this calculation will consist of the =
sum of=20
</FONT></FONT></FONT></STRONG><FONT face=3DArial size=3D2><B>Q2 + Q1 (of =
the current=20
fiscal year) plus Q4 +Q3 (of the prior fiscal year).&nbsp; Each =
successive=20
period will be based on the next trailing four quarters of earnings per=20
share.</B></FONT></P>
<P><FONT face=3DArial size=3D2><B>The amount of time used to calculate =
the Growth=20
Rate is based on two factors;&nbsp;</B></FONT></P>
<UL>
  <LI><FONT face=3DArial size=3D2><B>Availability of data</B></FONT>=20
  <LI><FONT face=3DArial size=3D2><B>Positive earnings</B></FONT> =
</LI></UL>
<P><FONT face=3DArial size=3D2><B>If a stock does not have at least =
three years of=20
positive earnings (based on the trailing four-quarter method noted =
above), an=20
</B><STRONG><FONT face=3DArial color=3D#000080 size=3D2>"N/A" will=20
appear.&nbsp;</FONT></STRONG></FONT></P>
<P><FONT face=3DArial size=3D2><STRONG><FONT face=3DArial =
color=3D#000080 size=3D2>The=20
amount of time used for this calculation will consist of at least three =
years=20
but no more than five years of positive earnings per share. If a =
four-quarter=20
period sum is negative, that period and additional earnings further back =
in=20
time, will not be used in the calculation of this data=20
item.&nbsp;</FONT></STRONG></FONT></P></DIV>
<BLOCKQUOTE=20
style=3D"PADDING-RIGHT: 0px; PADDING-LEFT: 5px; MARGIN-LEFT: 5px; =
BORDER-LEFT: #000000 2px solid; MARGIN-RIGHT: 0px">
  <DIV style=3D"FONT: 10pt arial">----- Original Message ----- </DIV>
  <DIV=20
  style=3D"BACKGROUND: #e4e4e4; FONT: 10pt arial; font-color: =
black"><B>From:</B>=20
  <A title=3Dsgettis@ucla.edu href=3D"mailto:sgettis@ucla.edu">Scott =
Gettis</A>=20
  </DIV>
  <DIV style=3D"FONT: 10pt arial"><B>To:</B> <A =
title=3Dcanslim@lists.xmission.com=20
  =
href=3D"mailto:canslim@lists.xmission.com">canslim@lists.xmission.com</A>=
 </DIV>
  <DIV style=3D"FONT: 10pt arial"><B>Sent:</B> Monday, February 25, 2002 =
7:44=20
  PM</DIV>
  <DIV style=3D"FONT: 10pt arial"><B>Subject:</B> [CANSLIM] EPS Growth =
Rate</DIV>
  <DIV><BR></DIV>Could someone explain how DGO computes Growth=20
  Rate?<BR><BR>-<BR>-To subscribe/unsubscribe, email "<A=20
  =
href=3D"mailto:majordomo@xmission.com">majordomo@xmission.com</A>"<BR>-In=
 the=20
  email body, write "subscribe canslim" or<BR>-"unsubscribe =
canslim".&nbsp; Do=20
  not use quotes in your email.<BR></BLOCKQUOTE></BODY></HTML>

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