Re: [CANSLIM] DGO / IBD question


From: "Katherine Malm" <kmalm@earthlink.net>
Subject: Re: [CANSLIM] DGO / IBD question
Date: Wed, 1 May 2002 09:30:08 -0500

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Tom,

Good catch. I had never noticed that they used different time frames for =
their calculations. Here's the "official" definitions from each source:

Katherine

=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D
From DGO:
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



From IBD Stock Checkup:

EPS Growth Rate %, 3 YEAR
The compound 3-year growth rate calculated using the least squares fit =
over the latest two to three years' earnings per share on a running =
12-month basis. Growth rate will be calculated only if there is a =
minimum of eight trailing 4-quarter periods of positive earnings (uses a =
minimum of 11 quarters of data).=20

  ----- Original Message -----=20
  From: Tom Worley=20
  To: canslim@lists.xmission.com=20
  Sent: Wednesday, May 01, 2002 7:32 AM
  Subject: Re: [CANSLIM] DGO / IBD question


  Hi Mona,

  don't know about finding the "same" figure, but DGO shows a five year =
number
  labeled "Growth Rate" in the data block. From some past experiences, =
as well
  as the DGO beta site experience, I think each one is using different =
time
  frames for some of the calculations. DGO uses 5 years for this item, I =
think
  IBD may only be using 3 years, which would explain the difference.

  Tom Worley
  stkguru@bellsouth.net
  AIM: TexWorley
  ----- Original Message -----
  From: "Mona Guarino" <webmaster@design21.com>
  To: <canslim@lists.xmission.com>
  Sent: Wednesday, May 01, 2002 11:23 AM
  Subject: [CANSLIM] DGO / IBD question


  In the IBD stocks in the news graphic displays, there is usually an =
"annual
  eps growth" figure. Is there anyplace in IBD or DGO where I can find =
the
  same annual eps figure? I am not seeing anything that matches it.

  Example, today's printed IBD shows:
  DRS as 39% annual eps growth

  DGO weekly shows EPS growth rate as 7%

  What am I missing here?

  -- Mona

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charset=3Diso-8859-1">
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</HEAD>
<BODY bgColor=3D#ffffff>
<DIV>Tom,</DIV>
<DIV>&nbsp;</DIV>
<DIV>Good catch. I had never noticed that they used different time =
frames for=20
their calculations. Here's the "official" definitions from each =
source:</DIV>
<DIV>&nbsp;</DIV>
<DIV>Katherine</DIV>
<DIV>&nbsp;</DIV>
<DIV>=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D</DIV>
<DIV>From DGO:</DIV>
<DIV>
<P><STRONG><FONT face=3DArial color=3D#000080 size=3D3>EARNINGS =
FIVE-YEAR GROWTH=20
RATE:</FONT><BR><FONT face=3DArial size=3D2>This item is c<FONT =
face=3DArial=20
color=3D#000080 size=3D2>alculated by using a least squares regression =
fit over a=20
3-to-5 year period of earnings per share based on a trailing =
four-quarter count.=20
For example, if a stock is currently in its second quarter, the first =
period=20
used in this calculation will consist of the sum of =
</FONT></FONT></STRONG><FONT=20
face=3DArial size=3D2><B>Q2 + Q1 (of the current fiscal year) plus Q4 =
+Q3 (of the=20
prior fiscal year).&nbsp; Each successive period will be based on the =
next=20
trailing four quarters of earnings per 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>
<P><STRONG><FONT face=3DArial color=3D#000080 =
size=3D2></FONT></STRONG>&nbsp;</P>
<P><STRONG><FONT face=3DArial color=3D#000080 size=3D2>From IBD Stock=20
Checkup:</FONT></STRONG></P>
<H4 class=3Ddetail>EPS Growth Rate %, 3 YEAR</H4>
<P>The compound 3-year growth rate calculated using the least squares =
fit over=20
the latest two to three years=92 earnings per share on a running =
12-month basis.=20
Growth rate will be calculated only if there is a minimum of eight =
trailing=20
4-quarter periods of positive earnings (uses a minimum of 11 quarters of =
data).=20
</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=3Dstkguru@bellsouth.net =
href=3D"mailto:stkguru@bellsouth.net">Tom=20
  Worley</A> </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> Wednesday, May 01, 2002 =
7:32=20
  AM</DIV>
  <DIV style=3D"FONT: 10pt arial"><B>Subject:</B> Re: [CANSLIM] DGO / =
IBD=20
  question</DIV>
  <DIV><BR></DIV>Hi Mona,<BR><BR>don't know about finding the "same" =
figure, but=20
  DGO shows a five year number<BR>labeled "Growth Rate" in the data =
block. From=20
  some past experiences, as well<BR>as the DGO beta site experience, I =
think=20
  each one is using different time<BR>frames for some of the =
calculations. DGO=20
  uses 5 years for this item, I think<BR>IBD may only be using 3 years, =
which=20
  would explain the difference.<BR><BR>Tom Worley<BR><A=20
  =
href=3D"mailto:stkguru@bellsouth.net">stkguru@bellsouth.net</A><BR>AIM:=20
  TexWorley<BR>----- Original Message -----<BR>From: "Mona Guarino" =
&lt;<A=20
  =
href=3D"mailto:webmaster@design21.com">webmaster@design21.com</A>&gt;<BR>=
To:=20
  &lt;<A=20
  =
href=3D"mailto:canslim@lists.xmission.com">canslim@lists.xmission.com</A>=
&gt;<BR>Sent:=20
  Wednesday, May 01, 2002 11:23 AM<BR>Subject: [CANSLIM] DGO / IBD=20
  question<BR><BR><BR>In the IBD stocks in the news graphic displays, =
there is=20
  usually an "annual<BR>eps growth" figure. Is there anyplace in IBD or =
DGO=20
  where I can find the<BR>same annual eps figure? I am not seeing =
anything that=20
  matches it.<BR><BR>Example, today's printed IBD shows:<BR>DRS as 39% =
annual=20
  eps growth<BR><BR>DGO weekly shows EPS growth rate as 7%<BR><BR>What =
am I=20
  missing here?<BR><BR>-- Mona</BLOCKQUOTE></BODY></HTML>

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