DIY

June 6, 2007

Here is the list of stocks with 70 plus EPS ratings for today. Now the task is to reduce it to few or none opportunities using the method I outlined for last couple of days.
The factors used to narrow the list are:
1 30 days or 65 days growth less than 10%
2 Relative Strength >=65
3 Current price must be within 15% of 52 week high or within 15% of recent high in case of IPO
4 No 4% plus breakout in last 10 days
You can post your analysis in comments.

ANGO,Angiodynamics (Google  Yahoo  Earnings  Chart) 
B,Barnes Group Inc (Google  Yahoo  Earnings  Chart) 
CHA,China Telecom (Google  Yahoo  Earnings  Chart) 
CTEC,Cholestech Corporation (Google  Yahoo  Earnings  Chart) 
DLTR,Dollar Tree Stores Inc (Google  Yahoo  Earnings  Chart) 
EDA,Endeavor Acquisition Corp (Google  Yahoo  Earnings  Chart) 
EEFT,Euronet Worldwide Inc (Google  Yahoo  Earnings  Chart) 
ETFC,E Trade Financial Corp (Google  Yahoo  Earnings  Chart) 
EXFO,Exfo Electro-Optical Eng (Google  Yahoo  Earnings  Chart) 
JSDA,Jones Soda Co (Google  Yahoo  Earnings  Chart) 
NFLX,Netflix Inc (Google  Yahoo  Earnings  Chart) 
NGS,Natural Gas Svcs Grp Inc (Google  Yahoo  Earnings  Chart) 
RUS,Russ Berrie & Co Inc (Google  Yahoo  Earnings  Chart) 
SWHC,Smith & Wesson Hldg Corp (Google  Yahoo  Earnings  Chart) 
TAL,TAL International Group Inc (Google  Yahoo  Earnings  Chart) 
TATTF,Tat Technol Ltd (Google  Yahoo  Earnings  Chart) 

13 comments :

  1. johnJun 6, 2007, 9:18:00 PM

    Pradeep,
    First filter yields: NFLX, EDA, TATTF, ANGO, ETFC, EEFT, EXFO, CTEC. DLTR, SWHC, JSDA
    Second filter yields: EDA, TATTF, EXFO, CTEC. DLTR, SWHC, JSDA
    Third filter yields: EDA, CTEC. DLTR, SWHC
    Fourth filter yields: EDA, DLTR, SWHC

    Thanks for the quiz!
    John

    ReplyDelete
  2. cfJun 6, 2007, 10:02:00 PM

    My method is differently ordered because I must do it by hand (It makes me wonder at my mining engineer grandfather, who lost a fortune in the 20s but made it back and so much more by the time he died in the 60s -- all by hand and no internet, wow!)
    * RS rating excludes ANGO, NFLX, EEFT, ETFC
    * Eyeballing the charts excludes B and DLTR
    * doing the math on 30 and 65 day excludes CTEC, CHA and EDA (boohoo, I liked how that chart looked and was rooting for it)
    * doing the math on the 4% excludes TAL, RUS, NGS, TATTF and JSDA

    That leaves me with SWHC and EXFO.

    Thank you for the good practice again.

    ReplyDelete
  3. AnonymousJun 6, 2007, 11:13:00 PM

    Hey Pradeep,
    I noticed that you included SWHC in your watch/buy list and I wonder how it managed to go through your screener. You mention that you prefer to trade underfollowed stock with low float and accelerating eps and sales.
    In the case of SWHC we see a deccelerating eps and revenues of an year over year basis. Doesn't that contradict to your own method?
    It is obvious that the stock is up in a major down day and on a 2.5 times the average volume, but that is not an all time high volume.(if that still mean something to you).
    The stock possesses relatively small float of 29.3 mill shares and it is 50% own by insiders, it is followed by only one analyst, which is a good precondition for a winner. SWHC is heavily shorted with 5.76 mill shares sold short, which represents 18.6% of the whole float. Short ratio is 7.3, which means that if the stock break the resistance of 15, many shorts will be heavilly squeezed. The stock is up 50% since December and more then 400% for the last 2 years, but according to OX it didn't meet the earning's expectatations last quarter and disapointed with -14.8%. It is clearly forming cup with handle base, which is a good start if it breaks over 15. Earnings are due in 8 days and still the average IV of the options is in normal. levels. put/call ration is 1.65, which is usually a contrary indicator for such a small and underfollowed stock.
    Which ones of your criterias that stock met in order to appear in your wach list.(except the over 100% rise in last 260 days). Thanks for your thoughts on the topic.

    ReplyDelete
  4. UnknownJun 6, 2007, 11:17:00 PM

    Step1: EEFT,ETFC,NFLX,ANGO,TATTF,EDA and EXFO
    Step2:
    ETFC,EDA and EXFO

    Step 3:
    ETFC,EDA and EXFO

    Step 4
    None

    ReplyDelete
  5. bowler2005Jun 7, 2007, 12:06:00 AM

    I get DLTR only

    ReplyDelete
  6. BGJun 7, 2007, 12:13:00 AM

    ETFC,DLTR,EXFO,EDA,SWHC

    ReplyDelete
  7. SusanJun 7, 2007, 12:48:00 AM

    Step1: ANGO, CTEC, EDA, EEFT, ETFC, EXFO, JSDA, NFLX, RUS, SWHC, TAL, TAFFT.
    Step2: dont have ibd, will trust CF on this. Left with: CTEC, EDA, EXFO, JSDA, RUS, SWHC, TAL, TAFFT.
    Step3: CTEC, EDA, EXFO, RUS, SWHC, TAL
    Step4: EDA,EXPO,SWHC

    ReplyDelete
  8. NashasaJun 7, 2007, 1:00:00 AM

    Step 1: ANGO, CTEC, DLTR, EDA, EEFT, ETFC, EXFO, JSDA, NFLX, SWHC, TATTF

    Step 2: All in Step1 (Don’t have IBD or TC. So manually calculated using formula: 0.4 * (C * 100 / C65) + 0.2 * (C * 100 / C130) + 0.2 * (C * 100 / C195) + 0.2 * (C * 100 / C260))

    Step 3: CTEC, DLTR, EDA, ETFC, EXFO, SWHC

    Step 4: DLTR, EDA, ETFC, EXFO, SWHC

    ReplyDelete
  9. SiyaJun 7, 2007, 5:26:00 AM

    Step1: ANGO,TATTF,NFLX, EEFT, EXFO,EDA, ETFC,SWHC, CTEC, DLTR, JSDA
    Step2: JSDA, TATTF, SWHC, DLTR, EDA, CTEC, EXFO
    Step3: CTEC, DLTR, EDA, SWHC, EXFO
    Step4: DLTR,EDA,SWHC, EXFO

    I took RS value of EXFO from IBD.

    Thanks,
    Siya

    ReplyDelete
  10. Pradeep BondeJun 7, 2007, 6:46:00 AM

    ivanhoff
    70 EPS is Earnings momentum so if a stock has one bad quarter on earnings, it still can have higher EPS ratings.
    The list at the end gives you hot prospect and one can further shortlist candidates from them based on actual earning growth rate, recency of acceleration, float, years since IPO and so on.

    ReplyDelete
  11. bowler2005Jun 7, 2007, 12:58:00 PM

    Pradeep,
    What is the correct list.

    Thanks

    ReplyDelete
  12. SusanJun 7, 2007, 1:08:00 PM

    pradeep, you showed a manual way to calculate RS (something like0.4 * (C * 100 / C65) + 0.2 * (C * 100 / C130).....).

    Is there a manual way to calculate EPS rating for the rest of who does not have IBD? thanks

    ReplyDelete
  13. Pradeep BondeJun 7, 2007, 1:28:00 PM

    S
    DLTR,EDA,SWHC, EXFO

    Susan
    Do all steps first barring EPS, for the reduced list see the earnings in Moneycentral, ultimately only last 2 quarters earnings matter in most cases. Look for earnings up 25% plus in either of last 2 quarters. You will not get exact same results, but it is a alternative.
    Or else trade other method like Double Trouble.

    ReplyDelete

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