Re: [CANSLIM] Testing Smart Money Screening Tool

From: "Patrick Wahl" <pjwahl@attbi.com>
Subject: Re: [CANSLIM] Testing Smart Money Screening Tool
Date: Sun, 21 Apr 2002 14:13:01 -0600

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On 21 Apr 2002 at 12:08, Warren Keuffel wrote:

> A -- 5 Yr earnings growth % >= 25%
> C -- Quarterly earnings % (compared to same qtr previous year) >= 25%
> I -- Institutional ownership < 40%
> S -- Market Cap < $200M
> S -- Debt as % of total cap < 50%
> 
> I have not looked at the charts for these bad boys, or done any further DD,
> but I am curious what comments you might have about (a) screening in this
> manner; (b) the screening parameters (numbers) I used; and (c) which, if
> any, parameters would you drop, add or change.

A few thoughts: bump the market cap up to about a billion or so, that isn't that large 
these days, unless you are really shooting for just the midget caps, cut the earnings 
growth down from 5 years to 1 year, but that is a good percentage to use, and also 
add a check for revenue growth, maybe greater than 25%.  5 years is a very long 
time to sustain that sort of growth, you are going to filter out a lot of companies with 
that time frame.  Another thing I do in my quotes plus scan is something like Close 
within 20% of 52 week high (or some percentage), and close > the 50 day moving 
average, just so your scan isn't kicking out some dogs, performance-wise.

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