lecture du week end

**s.lemon4** · 24/04/2004, 00:32

29. Rising Estimates and Possible Upside Surprise

Without a question, this earnings season threatens to be the
most difficult one for investors to navigate since at least
the last recession. The pace of the economic contraction
accelerated following September 11, making business
conditions worse for many companies. Nonetheless, there are
companies that are continuing to perform well and have a
higher-than-average chance of topping quarterly earnings
expectations. Stocks With Rising Earnings Estimates That May
Top Expectations identifies such companies.

The search strategy is built around two key criteria - a
streak of at least four consecutive quarters of positive
earnings surprises and recent upward revision in the earnings
forecast for the current year. The first criterion
establishes that a precedent exists for the company to top
expectations, while the second criterion suggests that
business conditions have continued to improve. Combining
these two criteria results a list of companies that are
continuing to thrive in the current climate and have a track
record of beating analyst estimates.

Using the two criteria by themselves would result in limited
list of stocks, but to improve the validity of the search, we
added four additional criteria. Earnings estimates from a
minimum of four analysts were required to limit the skewing
effects of one overly bullish analyst on the earnings forecast
for the current year. Four quarters of revenue growth was
required limit the results to only those companies that
increasing the topline and not just relying on cost-cutting
measures to improve profits. Similarly, requiring a sequential
positive change in revenue between the previous two quarters,
suggests that the sales growth curve has not begun to reverse
this year. Three-week relative performance of no less than 80
percent was required to eliminate those companies may have
dropped precipitously over the past few weeks - precipitous
drops suggest that sentiment is against a positive earnings
announcement.

The strategy is designed for both active traders and
long-term investors who are looking for investment ideas.
The strategy can be used as often as on a daily basis, though
it works well when run on a weekly basis as well. Investors
can click below to see the current results.

Search Criteria

Using WallStreetCity's ProSearch tool, investors can
build a search like the one below created by WallStreetCity
analysts to identify stocks with rising estimates that could
top earnings expectations.

Indicator Mode
------------------------------------------------------------
EPS Increase Last 4-Qtr Between 4.0 - 4.0
Proj EPS 1-Mth Change CFY Between 0.1 - 1,000.0, High
Analysts No. Cur FY Between 4.0 - 1,000
Rev. Increase Last 4 Qtr Between 4.0 - 4.0
Rev. Increase Last Qtr Between 100.1 - 99999.9
Rel Performance 3-Wk Between 80.0 - 99999.9

30. Searching For Companies With Strong Balance Sheets

The accounting heart of any corporation is its balance sheet.
Without a strong balance sheet and the means to maintain
fiscal strength, a company's ability to compete as a
going-concern is at risk. The recently announced
bankruptcies of Excite@Home {ATHMQ} and Exodus
Communications are proof of this; both companies took on
substantial levels of debt to grow their businesses and their
inability to service this debt destroyed them.

Companies With Strong Balance Sheets is search strategy
designed to identify those companies that are fiscally
strong, and thus have virtually no risk of bankruptcy
(extraordinary events excluded). These are companies that
have liquidity, no long-term debt, are profitable, and are
generating positive cash flow. The advantage of seeking out
such companies during recessionary times is that their fiscal
strength allows them to withstand a decrease in revenues
and/or profits. Furthermore, fiscal strength also gives them
the ability to gain market share either by acquiring
competitors at discount prices or engaging in a price war.

The search strategy is utilizes four different criteria, all
in the restrictive mode. The current ratio is a comparison
of the extent to which current assets exceed current
liabilities. It is a proxy of a company's ability to meet
short-term obligations with short-term assets. The
debt-to-equity criterion in ProSearch is the ratio of
long-term debt to equity; setting the ratio at zero limits
the results to only those companies without any long-term
debt. Positive levels of return on equity demonstrate that a
company is profitable and is building shareholder value.
Free cash flow per share measures the ability a company to
generate positive levels of cash from business operations; a
company without positive cash from operations will delete the
cash levels shown on the balance sheet and may eventually be
forced to take on debt in order to stay afloat.

The search strategy is designed for investors who place a
high emphasis on fundamental analysis as well as those
investors with low risk tolerances. Investors should
consider running the strategy on a weekly basis and can click
below to see the current results.

Search Criteria

Using WallStreetCity's ProSearch tool, investors can
build a search like the one below created by WallStreetCity
analysts to identify stocks strong balance sheets.

Indicator Mode
------------------------------------------------------------
Current Ratio Between 3.0 - 1000.0, High
Debt/Equity Ratio Between 0.0 - 0.0
Return on Equity Between 1.0 - 1.0
Cash Flow/Share Free Between 1.0 - 1000.0, High

31. Low Volume Stocks Coming Under Strong Buying Pressure

The September 11 attacks and the recent anthrax outbreaks
have pushed several thinly-traded stocks into the spotlight.
Traders who identified these stocks early in their breakouts
were able to benefit from substantial short-term percentile
gains, particularly since the stocks had already traded up
on extremely high levels of volume before the investment
media began to draw attention to the upward moves. Thus the
importance of being to identify such moves early in the
breakout cannot be understated.

Low Volume Stocks Coming Under Strong Buying Pressure is a
search strategy that allows traders and investors to find
such stocks. The strategy defines illiquid stocks as having
average volume of 5,000 to 250,000 shares per day. Within
this universe, stocks are screened for upward price movement
on volume levels that are at least 50 percent greater than
average, with emphasis placed on those stocks with highest
levels of relative volume. The results produce a list of
thinly-stocks that may be in the midst of significant upward
moves.

The search strategy is designed for those investors who are
looking for short-term trading opportunities and have a very
high tolerance for risk. Because of the volatility inherent
in the search results, interested investors should consider
running the search strategy on an intraday basis. Investors
can click below to see the results.

Search Criteria

By subscribing to Wall Street City, investors can utilize
Power ProSearch to build a search like the one below,
created by Wall Street City analysts, to identify
thinly-traded stocks that are trading upwards on unusually
high volume.

Indicator Mode
------------------------------------------------------------
Volume 30-Day Average Between 5.0 - 250.0
Rel Performance 1-Day Between 101.0 - 99999.9
Volume Ratio 1/30 Day Between 150.0 - 99999.9, High
Industry Group Display Only
Stock Exchange ALL US MARKETS

32. Large-Cap Stocks Displaying Technical Strength

The direction of the major stock indices is driven primarily
by large-cap stocks. Particularly, the S&P 500 and the
Nasdaq are very affected by how their largest members trade,
since both are market cap weighted averages. In other words,
the greater the market capitalization, the greater the
weighting a company is awarded in an index.

Investors can take advantage of upward moves in the major
indexes by identifying the large-cap stocks that are driving
the advance through search strategies such as Large-Cap
Stocks Displaying Technical Strength. This search strategy
screens for stocks with market capitalizations above $10
billion and a high short-term technical ranking. The
Technical Rank criteria is a proprietary ProSearch indicator
calculated by combining MACD, relative volume levels,
relative performance, and the stock's price relative to its
moving averages; it is a proxy for how a stock has performed
and may be expected to continue to perform over the
short-term.

In addition to technical rank, the 50-day moving average
criterion was used in the restrictive mode to limit the
results to only those stocks trading above their
intermediate trendline. Since technical rank represents a
score and not a percentile ranking, using it in the
restrictive mode creates difficulties for changing market
conditions. By instead using it in the relative mode and
then screening the results through the inclusion of a second
criteria, the search strategy becomes more adaptable to a
variety of market conditions. This means that even in
downtrending markets, the strategy can still be used to
identify those large cap stocks that are showing upward
momentum.

The strategy is designed for investors who are looking for
short-term trading opportunities. The strategy should be run
on a daily basis, though it may be useful on intraday basis
during volatile market conditions. Investors can click below
to see the current results.

Search Criteria

By subscribing to Wall Street City, investors can utilize
Power ProSearch to build a search like the one below,
created by Wall Street City analysts, to identify
large-cap stocks that are exhibiting technical strength.

Indicator Mode
------------------------------------------------------------
Market Capitalization At Least 1000.0
Rank Short-Term Technical High as Possible, 100%
Moving Average 50-Day Between 101.1 99999.9

33. Searching For Stocks With A High P/E and Low P/S

The price-to-earnings (P/E) ratio is considered to be the
standard for determining a stock's valuation. High P/E
ratios, especially in relation to a company's growth
prospects, are considered to be a sign that a stock is
overvalued, while low P/E ratios suggest that a stock may be
undervalued. One of the problems with the P/E ratio,
however, is that it can be skewed materially upward when
earnings are not of a material level. This can occur when a
company has recently turned profitable, profits are being
depressed by tough economic conditions, or an acquisition
has temporarily depressed profits. In these instances, an
alternate valuation measure should be used and one of the
most common is the price-to-sales ratio (P/S).

The P/S ratio divides a stock's price by revenue-per-share;
in other words, it measures by what multiple of sales a
stock is priced at. Stocks with P/S ratios below 2.0 are
often considered to be undervalued (though some analysts
prefer P/S ratios below 1.0), while stocks with double-digit
P/S ratios are generally considered to be overvalued, unless
they are in a cycle of rapid growth.

High P/E, Low P/S is a search strategy that screens for
stocks trading with high P/E ratios and low P/S ratios. The
primary parameters used in the search are a P/E ratio above
75 and a P/S ratio below 2.0. In addition, the strategy
requires that revenues have increased during each of the past
four quarters to exclude those companies whose businesses are
contracting.

The search strategy is designed for value-oriented investors
with intermediate to long-term investing horizons. The
strategy can be run as often as on a daily basis, but will
work fine when run on a weekly basis. Investors can click
below to see the current results.

Search Criteria

By subscribing to Wall Street City, investors can utilize
Power ProSearch to build a search like the one below,
created by Wall Street City analysts, to identify
stocks that are trading with high P/E ratios, but low P/S
ratios.

Indicator Mode
------------------------------------------------------------
P/E Ratio Between 75.0 - 10000.0
Price/Sales Ratio Between 0.1 - 2.0
Rev. Increase Last 4-Qtr Between 4.0 - 4.0
Volume 30-Day Average Between 250.0 - 99999.0

34. Institutionally Held Stocks With Strong Growth

Institutionally Held Stocks With Strong Revenue Growth is a
search strategy that looks for two characteristics in a
stock: sustained, strong revenue growth and high
institutional ownership. Revenue growth is the key to
increasing earnings over the long-term, and thereby building
shareholder value, because price increases and cost cutting
measures can only be applied to a limited extent before the
business model is adversely affected. Institutional
investors, on average, tend to invest in significantly larger
amounts than individual investors and are held to higher
fiduciary standards - particularly those that represent
pension or 401k money. High levels of institutional
ownership is viewed upon favorably by some individual
("retail") investors, because they perceive it as reducing
risk. Although institutional investors do in general conduct
more in-depth research than most retail investors, they also
tend to move out of stocks quicker than most retail investors
if they perceive problems with the stock. Combining the two
characteristics reveals a group of companies that are in the
midst of strong growth cycles and are well liked by
institutional investors.

The search strategy accomplishes this by using four ProSearch
criteria. The three-year trend in sales is used as the
primary criteria to look for only those companies that have
grown revenues at an annualized rate of 40.0 percent during
the past three years. Comparable period growth during the
past four quarters is also considered to reduce the chance
that the sales growth trend is skewed higher by strong results
three years ago that may be masking poor recent performance.
A minimum institutional ownership of 67 percent spread among
at least 75 institutional investors is required to ensure
that the stocks are popular among institutional investors.

The search strategy is designed for growth-oriented investors
as well as though who are looking to follow broader trends in
the markets. Traders may also find the list useful for
identifying stocks that may be capable of making volatile
moves as sentiment shifts. The strategy can be run as often
as on a daily basis, but will work fine when run on a weekly
basis. Investors can click here to see the current results.

Search Criteria

By subscribing to Wall Street City, investors can utilize
Power ProSearch to build a search like the one below,
created by Wall Street City analysts, to identify stocks
with strong growth that have high levels of institutional
ownership.

Indicator Mode
------------------------------------------------------------
Sales Growth 3-Yr Between 40.0 - 99998.0, High
Rev. Increase Last 4 Qtr Between 4.0 - 4.0
Institutional Holdings % Between 67.0 - 100.0
Institutional Holdings # Between 75.0 - 99998.0

35. Screening for Potential Downward Reversals

Based on the name alone, Potential Downward Reversals sounds
like a search strategy that is designed for traders who
looking for stocks to short. While certainly the search
strategy works well for purposes of identifying stocks that
may be attractive shorts, the strategy also benefits
investors with long positions by helping them to determine
when to start considering taking a profit. The reason is
that once an upward trend is broken, a stock can potentially
fall to prior areas of resistance or lower, thereby cutting
into or completely negating profits. Therefore, knowing when
to sell a stock is as or perhaps even more important than
knowing when to buy it.

The strategy is based around three technical criteria -
six-week relative performance, one-day relative performance,
and the one-week change in the accumulation distribution
ratio. A minimum gain of 10 percent over the past six weeks
is required to screen for stocks that have recently
appreciated in price - an upward price trend. This group is
then screened for a one-day decline in price combined with a
recent, negative change in accumulation distribution ratio.
The accumulation distribution ratio is a proxy for measuring
buying and selling pressure and combining it with a decline
price suggests that sentiment may be shifting against a
stock.

It is important to note that this strategy screens for
potential reversals and the mere appearance of a stock in
the results does not necessarily mean that it is experiencing
an actual price reversal. Instead, the strategy should be
used more a starting point for determining when an exit or
short strategy should be implemented. Investors are
encouraged to look additional signs of a trend reversal,
such as negative breakout in the MACD, Wilder RSI or moving
average indicators.

The search strategy is designed to be run on at least a daily
basis. Investors can click below to see the current results.

Search Criteria

By subscribing to Wall Street City, investors can utilize
Power ProSearch to build a search like the one below,
created by Wall Street City analysts, to identify stocks
that may be at risk of trending downward after having made a
strong upward move in price.

Indicator Mode
------------------------------------------------------------
Rel Performance 6-Wk Between 110.0 - 99998.0, High
Rel Performance 1-Day Between 10.0 - 98.0, Low
Acc. Dist 1-Wk Chg Between -999.0 - -1.0
Volume 30-Day Average Between 250.0 - 99998.0

36. Small Cap Dogs of the NYSE

Two popular investing strategies will be begin getting press
coverage over the next several weeks. The first is the "Dogs
of the Dow". Investors following this simplistic strategy
rank all of 30 members of the Dow Jones Industrial Average
{.DJI} by dividend yields and then buy the ten stocks with
the highest yields, in equal dollar amounts. At the end of
each year, investors re-rank the Dow stocks and adjust their
strategies accordingly. The second strategy is the "January
Effect". The January effect refers to a decline in stock
prices during December as investors take tax losses and then
a corresponding rise in prices during January, as bargain
hunters step in. The January effect is typically most
prevalent among small cap stocks.

Small Cap Dogs of the NYSE is a search strategy based upon
both investing strategies. The strategy screens all of the
small cap stocks traded on the New York Stock Exchange for
those with 25 highest dividend yields. Backtesting results
show that this strategy has outperformed the major indices
over the past two years. Investors should note, however,
that this strategy does not include any consideration for
fundamental or technical strength.

Investors can click below to see the current results.

Search Criteria

By subscribing to Wall Street City, investors can utilize
Power ProSearch to build a search like the one below,
created by Wall Street City analysts, to identify small cap
stocks traded on the New York Stock Exchange with high
yields.

Indicator Mode
------------------------------------------------------------
Stock Exchange NYSE
Dividend Yield Between 0.1 - 1,000.0, High
Market Capitalization Between 25.0 - 99998.0

37. Finding Fallen Angels

One popular trading method among value-oriented investors is
to buy stocks with strong underlying fundamentals when they
are trading at prices well below their 52-week or record
highs. These stocks are often referred to as "fallen angels"
because, though their financial condition and growth
prospects are positive, they are priced at relatively low
valuations compared to their historic ranges. The problem
with finding these stocks, however, is the amount of time
required to determined which stocks are actually relative
bargains and which stocks deserve to see their prices spiral
downward.

Fallen Angels is a search strategy designed to sort through
stocks that are trading near or below their 200-day moving
averages to find investment candidates with favorable
underlying fundamentals. The strategy accomplishes this
task by looking for companies with positive revenue and
earnings growth and low to acceptable levels of debt risk.
Earnings surprise criteria are also used to find those
companies that have had a history of exceeding analysts'
estimates, even if they missed the consensus estimate during
one of the previous four quarters.

The strategy is designed for investors seeking to employ a
contrarian investing strategy with longer-term time horizons.
Short-term traders may find the strategy useful, however, as
a mechanism for identifying potential January Effect
candidates.

Investors can click below to see the current results.

Search Criteria

By subscribing to Wall Street City, investors can utilize
Power ProSearch to build a search like the one below,
created by Wall Street City analysts, to identify stocks
that may be fallen angels.

Indicator Mode
------------------------------------------------------------
Moving Average 200-Day Between 0.0 - 105.0
Price - Stock Between 10.0 - 99998.0
Rev. Increase Last 4-Qtr Between 4.0 - 4.0
EPS Increase Last 4-Qtr Between 4.0 - 4.0
Proj EPS Current Fiscal Yr Between 5.0 - 1000.0
Proj EPS Next FY Between 5.0 - 1000.0
Current Ratio High as Possible
Debt/Equity Ratio Between 0.0 - 50.0
EPS Surprise Pos Last 4 High as Possible
EPS Surprise Neg Last 4 Low as Possible
Volume 30 Day Average Between 100.0 - 99998.0
Acc. Dist 1-Wk Chg 1-Wk Between 1.0 - 1000.0

38. Searching for Small-Cap Market Beaters

Heading into the new year, we decided to revisit a search
strategy that we first discussed last March, Small-Cap
Market Beaters. The search strategy screens for stocks with
market capitalizations between $500 million and $1 billion
that may be poised to outperform the broader market averages.
Such a search strategy may prove to be advantageous this time
of year, because small-cap stocks have historically tended to
outperform stocks with larger market capitalizations during
the month of January.

To generate a list of potential market beaters, the search
strategy screens for three distinct characteristics -
technical strength, a low-to-reasonable valuation, and
revenue growth. Two measures were used to measure technical
strength - how close the current price is to the 52-week high
and short-term technical rank. High scores for both of these
criteria suggest that a stock is in the midst of an upward
trend or has recently appreciated in price. Valuation is
screened for because several academic studies show that the
outperformance of small-cap stocks is most amplified by those
issues that are so-called "value-plays". Revenue growth over
the past four quarters is important, because companies that
are able to increase sales in the current economic may also
be among those best suited to benefit when the economy
recovers. Average volume is used as a final, restrictive
criterion to exclude those stocks with low levels of
liquidity.

The search strategy can be run as often as on an intraday
basis because of market fluctuations. It works well both for
swing traders who are looking for a short-term momentum play
as well as for investors with longer investment horizons who
are looking to diversify into small-cap stocks. Click here
to see the results.

Investors can click below to see the current results.

Search Criteria

By subscribing to Wall Street City, investors can utilize
Power ProSearch to build a search like the one below,
created by Wall Street City analysts, to identify small-cap
stocks that could potentially outperform the broader market
averages.

Indicator Mode
------------------------------------------------------------
Market Capitalization Between 50.0 - 100.0
High/Low % High Val 52-Wk Between 80.0 - 100.0
Rank Short Term Technical Between 75.0 - 100.0, High
P/E Ratio Between 1.0 - 30.0
Rev. Increase Last 4-Qtr Between 4.0 - 4.0
Volume 30-Day Average Between 100.0 - 99999.9

39. Searching for Small-Cap Market Beaters

Technical indicators such as the Wilder RSI, MACD,
stochastics, and moving average are used to assist investors
in timing a trade. Used by themselves, the individual
indicators can improve investment decisions, though none of
them are completely fail-safe. In fact, many professional
traders have differing opinions on which indicator is the
most reliable. Used in conjunction with one another, however,
the effectiveness of technical indicators as a tool for
timing trades, greatly increases.

Screening for Multiple Technical Breakouts is a highly
restrictive search strategy that screens for stocks that may
be on the verge of starting a new upward trend. The strategy
identifies stocks that have made a positive 8/17/9-Day MACD
breakout within the past three days. The strategy then looks
to three other technical indicators for confirmation that a
new upward trend may have begun. Bullish signals from two or
more technical indicators improves the likely that a stock is
the process of making a definitive upward breakout.

The strategy is designed for traders who rely heavily on
charts, but investors with a more fundamental focus should
find the strategy useful for improving timing decisions.
Investors can click here to see the current results.

Investors can click below to see the current results.

Search Criteria

By subscribing to Wall Street City, investors can utilize
Power ProSearch to build a search like the one below,
created by Wall Street City analysts, to identify stocks
that may be on the verge of starting a new upward trend.

Indicator Mode
------------------------------------------------------------
MACD Breakout 8/17/9-Day Between 1.0 - 3.0
Stochastics Value 21/3-Day Between 20.0 - 40.0
Wilder RSI 14-Day Between 25.0 - 40.0
Moving Average 200-Day Between 90.0 - 110.0
Volume 30 Day Average Between 50.0 - 99999.9

40. Screening for Stocks That May Top Expectations

The primary focus of this earnings season will not be so
much on how companies performed during the fourth quarter,
but rather what their 2002 guidance is. Valuation levels
for many stocks have risen materially over the past few
months on the anticipation of an economic rebound occurring
this year. In order for these valuation levels to be
sustained, earnings will have to show a dramatic improvement.
Those companies that issue better than expected earnings
results and guidance may be the ones to receive the most
favorable attention from investors over the coming the
months. Stocks With Rising Earnings Estimates That May Top
Expectations identifies such companies.

The search strategy is built around two key criteria - a
streak of at least four consecutive quarters of positive
earnings surprises and a recent upward revision in the
earnings forecast for the current year. The first criterion
establishes that a precedent exists for the company to top
expectations, while the second criterion suggests that
business conditions have continued to improve. Combining
these two criteria results a list of companies that are
continuing to thrive in the current climate and have a track
record of beating analyst estimates.

Using the two criteria by themselves would result in a
limited list of stocks, but to improve the validity of the
search, we added four additional criteria. Earnings
estimates from a minimum of four analysts were required to
limit the skewing effects of one overly bullish analyst on
the earnings forecast for the current year. Four quarters
of revenue growth was required limit the results to only
those companies that increasing the topline and not just
relying on cost-cutting measures to improve profits.
Similarly, requiring a sequential positive change in
revenue between the previous two quarters, suggests that
the sales growth curve has not been reversed by the
recession. Three-week relative performance of no less than
80 percent was required to eliminate those companies may
have dropped precipitously over the past few weeks -
precipitous drops suggest that sentiment is against a
positive earnings announcement.

The strategy is designed for both active traders and
long-term investors who are looking for investment ideas.
The strategy can be used as often as on a daily basis, though
it works well when run on a weekly basis as well.

Investors can click below to see the current results.

Search Criteria

By subscribing to Wall Street City, investors can utilize
Power ProSearch to build a search like the one below,
created by Wall Street City analysts, to identify stocks
with rising earnings estimates that could report better than
expected profits.

Indicator Mode
------------------------------------------------------------
EPS Increase Last 4-Qtr Between 4.0 - 4.0
Proj EPS 1-Mth Change CFY Between 0.1 - 1,000.0, High
Analysts No. Cur FY Between 4.0 - 1,000
Rev. Increase Last 4-Qtr Between 4.0 - 4.0
Rev. Increase Last Qtr Between 100.1 - 99999.9
Rel Performance 3-Wk Between 80.0 - 99999.9

41. Cash Flow Positive Stocks With Upward Trends

The "Top Down" method to picking stocks is a strategy used by
many portfolio and hedge fund managers. The methodology
centers around finding the best sector/industry and then
picking the best stock within that group. The rationale
behind the strategy is to take advantage of favorable
business/economic conditions and or positive
momentum/sentiment. Both fundamentally-oriented investors
and technically-oriented traders can use the methodology to
their benefit.

Top Down Screening With ProSearch is a search strategy that
applies the Top Down methodology to the ProSearch engine. The
search strategy screens for industry groups with an above
average group rank and then screens for attractive investment
candidates within those groups. Specifically, the strategy
screens for stocks with strong balance sheets, positive
growth prospects, a reasonable valuation and a favorable
short-term rank.

The strategy can be run as often as on a daily basis, but
works well when run on a weekly basis. Investors can click
below to see the current results.

Search Criteria

By subscribing to Wall Street City, investors can utilize
Power ProSearch to build a search like the one below,
created by Wall Street City analysts, to identify the best
industry groups and the best stocks within those groups.

Indicator Mode
------------------------------------------------------------
Group Rank Between 101.0 - 1,000.0
Current Ratio Between 3.0 - 1,000.0
Debt/Equity Ratio Between 0.0 - 25.0
Rev. Increase Last 4 Qtr Between 4.0 - 4.0
Proj EPS Current Fiscal Yr Between 5.0 - 1,000.0
Price/Sales Ratio Between 0.1 - 2.0
Moving Average 50 Day Between 101.0 - 200.0

42. Searching For Covered Call Candidates

Covered call strategies are used to realize income from a
stock that is stuck within a basing pattern or to reduce
downside risk. The strategy involves "writing" (selling)
call options on shares of a particular stock already owned
for at an out of the money strike price (the price of the
call option is above the current price of the stock). The
goal of the strategy is to have the stock trade in a
relatively narrow price range, thereby causing the stock to
retain value while the option expires worthless. The writer
of the covered call benefits by collecting the premium (the
cost of the call), without witnessing a material decline in
the value of his stock. Investors should note that with this
type of strategy, commissions on the options trade can have a
material impact on net profits and need to be considered when
a low number of contracts are being sold.

Searching for Covered Call Candidates is a search strategy
designed to screen for optionable stocks trading in a basing
pattern. The strategy looks for stocks with price movements
largely restricted to a 20 percent range during the past 12
weeks, with relatively low levels of volatility. These are
stocks that are exhibiting chart patterns with discernable
short-term support and resistance levels.

The strategy is designed for investors looking to employ to
covered call strategies, but also works well for traders
seeking candidates for other types of options strategies
including collars and butterfly spreads. Investors can
click here to the current results.

Search Criteria

By subscribing to Wall Street City, investors can utilize
Power ProSearch to build a search like the one below,
created by Wall Street City analysts, to identify stocks
potentially suitable for covered call strategies.

Indicator Mode
------------------------------------------------------------
Rel Performance 1-WK Between 90.0 110.0
Rel Performance 3-Wk Between 90.0 110.0
Rel Performance 6-Wk Between 90.0 110.0
Rel Performance 12-Wk Between 90.0 110.0
Wilder RSI 14-Day Between 31.0 69.0
MACD Value 8/17/9-Day Between -2.0 2.0
Volatility 20-Day Low as Possible 100%
Stock Type Optionable Stock

43. Searching For Covered Call Candidates

Dividend Paying Stocks With Below Average Volatility is a
search strategy that looks for so-called "safe havens" within
the equity markets. These are stocks that possess a
combination of rising dividend yields, low volatility, and a
long-term trend of earnings growth. Turbulent economic
conditions or volatile financial markets often give these
stocks their day in the sun as investors seek safer grown,
though value-oriented investors with long-term investment
horizons also favor looking for safe-havens because their
potential to offer both growth and income.

Current income is sought by both looking for a high as
possible yield and dividend growth over the past five years.
Stability is sought by looking for below average levels of
volatility - an indication that a stock will not take
investors on a roller coaster ride. It should be noted,
however, that low levels of volatility do not eliminate
downside risk, but rather indicate that a stock's price
movement has tended to be more stable than the norm.
Earnings growth is defined by both the ten-year trend (the
long-term component) and the one-year trend (the short-term
component). Though a long-term trend of rising earnings
estimates is always favorable, the short-term component
needs to be considered since if it does not compliment the
longer-term trend, a change in business conditions could be
occurring or management may no longer be executing as well as
it did in the past. Minimum levels of volume have required
as an final criterion to ensure liquidity and to reduce the
effects of volatility that may occur in very thinly-traded
stocks.

The search strategy is designed for risk-adverse investors
with long-term investment horizons. The strategy should be
run on a weekly basis. Investors can click here to see the
current results.

Search Criteria

By subscribing to Wall Street City, investors can utilize
Power ProSearch to build a search like the one below,
created by Wall Street City analysts, to identify dividend
paying stocks with below average volatility.

Indicator Mode
------------------------------------------------------------
Dividend Yield Between 0.1 - 100.0, High
Dividend Growth 5-Yr Between 0.1 - 1000.0, High
Volatility 20-Day Between 0.0 - 25.0, High
EPS Consistency 10-Yr Between 30.0 - 40.0, High
EPS Increase Last 4-Qtr Between 4.0 - 4.0
Volume 30 Day Average Between 25.0 - 99999.9

44. High Debt, High Interest Coverage

Companies with proportionately high levels of debt are often
viewed in a negative light because of fears they could spiral
into bankruptcy. While companies that are overly leveraged
pose significant risks, there are many companies with the
earnings power to more than adequately service their debt
loads. These are companies may be making effective use of
debt to position themselves for long-term growth and industry
leadership.

High Debt, High Interest Coverage is a search strategy that
screens for companies with debt-to-equity (D/E) ratios in
excess of 1.0 and interest coverage ratios in excess of 5.0.
The D/E ratio measures the amount debt in proportion to the
level of reported equity. When debt and equity are reported
in equal amounts, the ratio is 1.0; when the level debt
exceeds the level of equity, the ratio rises above 1.0.
(ProSearch shows the number is percentage form meaning a D/E
ratio of 1.0 appears as 100.0 in the search results).
Interest coverage calculates the proportion of earnings to
interest expense. The higher the ratio, the easier it is for
a company to service its debtload.

To ensure fiscal stability, two other criteria were used in
the restrictive mode - the current ratio and EPS growth. The
current ratio measures the proportion of current assets to
current liabilities. High current ratios are often
suggestive of high cash levels and indicate a company is more
than able to meet its daily obligations. Positive earnings
growth increases the odds of a company's ability to meet its
debt obligations in the future and decreases the risk of
bankruptcy.

Price-to-Equity (P/E) was included in the list-only mode to
provide investors with a gauge of valuation. Often highly
leveraged companies trade at below market-average multiples
because of their increased risk relative to unleveraged
companies; this is particularly true in the current market
environment. These lower valuations may reflect an
over-estimation of the actual level of company, providing
the opportunity for additional upside.

The search strategy is designed for investors who place an
emphasis on fundamentals or follow contrarian strategies.
Investors can click below to see the current results.

Search Criteria

By subscribing to Wall Street City, investors can utilize
Power ProSearch to build a search like the one below,
created by Wall Street City analysts, to identify companies
with enough earnings to more than adequately service their
debt obligations.

Indicator Mode
------------------------------------------------------------
Debt/Equity Ratio Between 100.0 - 1000.0
Interest Coverage Between 5.0 - 1000.0
Current Ratio Between 1.1 - 1000.0
EPS Growth 1-Yr Between 1.0 - 1000.0
Volume 30-Day Average Between 150.0 - 99998.0
P/E Ratio Display Only

45. Companies With Potentially Too Much Debt

The high profile bankruptcies of Enron and K-Mart have shed
increased light on balance sheets and debt levels.
Compounding the affect of accounting scandals and credit
downgrades has been an economic slump that has resulted in a
heavy price being paid for business models based on overly
optimistic business models (e.g. Global Crossing).

Hedge funds who have kept a focus on balance sheets have been
able to profit greatly from the diminishment in market
capitalization through the use of puts or shorting
strategies. By taking advantage of search strategies such as
Companies With Potentially Too Much Debt, individual traders
can easily develop their own watchlist of stocks that have an
elevated level of downside risk.

The strategy is based on two key debt criteria -
debt-to-equity (D/E) and interest coverage. D/E measures the
proportion of debt to reported equity; ratios above 1 are
indicative of debts levels proportionately greater then
shareholders equity. (ProSearch shows the number is
percentage form, meaning a D/E ratio of 1.0 appears as 100.0
in the search results). Interest coverage measures the
extent to which earnings exceed interest payments. Interest
coverage ratios below 1.0 suggest a company is not
generating enough profits to service its debt obligations.

Four other criteria were then used to further limit the
search results. Current ratios, which measure the
proportion of current assets to current liabilities, were
limited to being no higher than 1.5. The lower the current
ratio, the more increased risk a company has of not being
able to meet its short-obligations. A stable to negative
change in insider trades compared to the same period a year
ago was required to eliminate those companies with an
increase in insider buying. A minimal stock price of $10
and a listing on a U.S. exchange is required to facilitate
shorting strategies.

This a shorting strategy designed for traders with high risk
tolerances. Other investors may find the strategy useful,
however, for assessing stocks that may have too much
downside risk. The current results can be viewed by
clicking on the link below.

Search Criteria

By subscribing to Wall Street City, investors can utilize
Power ProSearch to build a search like the one below,
created by Wall Street City analysts, to identify companies
with potentially too much debt.

Indicator Mode
------------------------------------------------------------
Debt/Equity Ratio Between 150.0 - 1,000.0, High
Interest Coverage Between -100 - 0.5, Low
Current Ratio Between 0.0 - 1.5
Insider Trades 12 Mth-Chg Between -1,000.0 - 0.0
Price - Stock Between 10.0 - 99998.0
Stock Exchange US Markets

46. Growth Stocks With Positive Money Flow

The Chaikin Money Flow indicator measures price movement
relative to volume. It is based on a similar theory as the
accumulation/distribution ratio, but instead of merely
measuring in changes in volume relative to price movement, it
considers the actual price range. Specifically, the Chaikin
Money Flow indicator calculates where a stock closed relative
to its intraday range proportionate to volume.

Chaikin Money Flow works well when combined with other
technical indicators to confirm the strength of an upward
trend. Growth Stocks With Positive Money Flow combines
Chaikin Money Flow with a positive delta in the momentum
indicator to create a list of growth stocks that may be
likely to continue their recent upward trends. The delta
measures the rate of change in the momentum histogram;
positive deltas suggest rising levels of momentum - a
bullish sign.

Swing traders will find the strategy useful for identifying
stocks with upward trends that may be likely to appreciate
further over the short-term. Investors with longer-term
horizons may also find the strategy useful for identifying
growth stocks trading on a favorable sentiment. The
strategy can be run as often as on an intraday basis.

Click below to see the current results.

Search Criteria

By subscribing to Wall Street City, investors can utilize
Power ProSearch to build a search like the one below,
created by Wall Street City analysts, to find growth
stocks with positive money flows.

Indicator Mode
------------------------------------------------------------
EPS Growth 1-Yr Between 5.0 10000.0
Rev. Increase Last 4 Qtr Between 4.0 4.0
Chaikin Money Flow High as Possible 100%
Chaikin Money Flow Between 10.0 1000.0
Momentum Delta 12/20/6 High as Possible 40%
Momentum Delta 12/20/6 Between 0.3 1000.0
Volume 30 Day Average Between 250.0 99998.0

47. Value Stocks With Strong Momentum

During the early stages of economic recovery, it is not
unusual to see value stocks leading the broader market
averages higher. This is because many such stocks are
economically sensitive (a.k.a. "cyclicals") and are viewed
as being among the primary beneficiaries of a recovery.

Value Stocks With Strong Momentum is a search strategy
designed to screen for stocks trading at low multiples of
book value in the midst of a recent upward trend. The
strategy seeks stocks that are trading at no more than two
times book value, have an above average momentum rank, and
are receiving inflows of capital - as is defined by the
Chaikin Money Flow indicator.

The strategy is designed for both fundamentally-based
investors and active traders. Though this strategy was
written specifically for the current market environment,
backtesting results indicate that the search strategy should
work in variety of economic conditions.

Click below to see the current results.

Search Criteria

By subscribing to Wall Street City, investors can utilize
Power ProSearch to build a search like the one below,
created by Wall Street City analysts, to find growth
stocks with positive money flows.

Indicator Mode
------------------------------------------------------------
Price/Book Ratio Between 0.1- 2.0
Rank Momentum Between 50.0 - 100.0, High
Chaikin Money Flow Between 30.0 - 1000.0, High
Price - Stock Between 5.0 - 100000.0
Volume 30-Day Average Between 250.0 - 99999.9

48. Stocks With Upward Breakout Potential

Proportionately large daily moves ending with a price near
the intraday high often signal the start, or the
continuation, of an upward trend. Traders, who are hoping to
take advantage of increasing momentum, often look for such
moves.

Stocks With Upward Breakout Potential screens for stocks with
bullish intraday price action. The strategy is based on
three key technical criteria, the daily price range, relative
volume, and bollinger bands.

Daily Range calculates the dollar difference between a
stock's intraday high and low price. Higher daily range
scores reflect a larger dollar difference between the high
and the low price. Increasing the usefulness of this
criterion is Daily Range Percentage, which calculates where,
on a percentage term, a stock closes in relation to its
intraday range.

Relative volume calculates today's volume relative to the
average number of shares traded over the past 30 days. High
level of relative volume suggest conviction and a is key
indicator for identifying technical breakouts.

Bollinger Bands reflect the upper and lower levels of a
stock's trading range, using the standard deviation of a
moving average (most often the 20-day moving average).
Breakouts above the upper band are considered to bullish,
because they may signify a move out of the current trading
channel, thereby allowing the upward trend to continue.

Short Interest was added an additional criteria in the
"Display Only" mode. Bullish chart patterns may force short
sellers to cover their positions ("short squeeze"), thereby
increasing the level of buying pressure.

This is a highly restrictive search strategy designed for
use by traders who follow a momentum investing philosophy.
The strategy is designed to be run on an intraday basis,
though because of the relative volume restrictions, the
number of results generated may be limited during the first
few hours of trading or on light volume days.

Click below to see the current results.

Search Criteria

By subscribing to Wall Street City, investors can utilize
Power ProSearch to build a search like the one below,
created by Wall Street City analysts, to find stocks with
upward breakout potential.

Indicator Mode
------------------------------------------------------------
Daily Range Between 1.5 - 1000.0
Daily Range Percent Between 90.0 - 100.0
Volume Ratio 1/30-Day Between 90.0 - 1000.0, High
Bollinger Band - Percent Between 75.0 - 200.0, High
Volume 30-Day Average Between 250.0 - 99999.9
Short Interest Ratio Display Only

49. Screening for Elite Small Caps

James Furry at JP Morgan recently released a report analyzing
growth rates of small cap stocks. Analyzing growth rates
during the years of 1985 to 1992, a period he describes as
having "normal capital spending", Furry calculated that the
"elite 20 percent" of small cap companies grew revenues at an
average annual rate of 49 percent. Using this analysis, he
expects the "elite" small cap companies to benefit from the
economic recovery and post strong growth rates in the second
half of the year.

Furry based his report on analyzing the revenue growth rates
of companies with market capitalizations between $100 million
and $3 billion for the years of 1985 through 2001. In
particular, the analyst focused on the "top 10%, 20%, and 30%
revenue growth companies", excluding those companies that
were micro-cap.

Using Furry's research as a basis, we've developed the Elite
Small Caps search strategy. The strategy screens for stocks
with market caps between $100 million and $3 billion that
grew revenues over the past 12 months by at least 49 percent.
To ensure that the positive growth rates are sustainable,
projected EPS growth of at least 15 percent was also
required.

The strategy is designed for growth investors and can be run
as often as on a daily basis, though using the strategy on a
weekly basis will work fine. The strategy was developed
without the input of James Furry and was developed simply to
show investors the small cap stocks best poised to show
strong growth rates, based on historical revenue data and
forecast earnings data.

Click below to see the current results.

Search Criteria

By subscribing to Wall Street City, investors can utilize
Power ProSearch to build a search like the one below,
created by Wall Street City analysts, to find stocks that
may be elite small caps.

Indicator Mode
------------------------------------------------------------
Market Capitalization Between 10.0 - 300.0
Sales Growth 1-Yr Between 49.0 - 1000.0, High
Proj EPS Current Fiscal Yr Between 15.0 - 1000.0, High
Price - Stock Between 5.0 1000.0

50. Searching For Undiscovered Fiscal Strength

One method of investing favored by many stock pickers is to
seek out fiscally strong companies that have been largely
ignored by the markets. These are companies whose stocks are
not widely held, but are fundamentally sound. The upshot to
finding these companies is that if they are successful in
executing their business plans, the potential exists for
higher than average levels of return due to growth in
popularity; in other words as more investors find out about
the stock, buying pressure swells and the price jumps.
Though this is not a method that works well for short-term
trading, investors with long-term horizons, and the patience
to wait for attractive entry points, may benefit from
following such a strategy. Searching For Undiscovered Fiscal
Strength makes it easy for investors to identify
fundamentally strong companies whose stocks not widely-held.

The characteristics that comprise an "undiscovered" stock
are defined as a low percentile of institutional ownership
and low levels of average trading volume. Combined, these
two criteria suggest that not only are institutional
investors not holding the stock, but hedge fund traders
mostly are not giving it the time of day.

Fiscal strength is defined a solid balance sheet combined
with earnings growth. High current ratios are required not
only to look for high levels of financial liquidity, but also
to increase the likelihood that the cash per share ratio is
high. Velocity is a measure of earnings growth and the
higher the rate of velocity, the faster the pace of earnings
growth. The minimum of a 52-week trading history is used in
conjunction with the financial indicators to prevent skewing
caused by a company that has recently gone public. Post-IPO
stocks often have very high levels of cash, resulting from
their public offerings, and are often in a rapid growth stage.

The strategy is designed to be run on a weekly basis.
Investors can click below to see the current results.

http://clyde.investools.com/T/A28.146.1346.1.116469

Search Criteria

By subscribing to Wall Street City, investors can utilize
Power ProSearch to build a search like the one below,
created by Wall Street City analysts, to find "undiscovered"
stocks that are fundamentally sound.

Indicator Mode
------------------------------------------------------------
Institutional Holdings % Between 0.0 - 25
Volume 30 Day Average Between 10.0 - 250
Current Ratio Between 2.0 - 100
Debt/Equity Ratio Between 0.0 - 0.3
EPS Earnings/Share Between 0.0 - 1,000
Velocity Average Between 10.0 - 10,000
Weeks Stock Has Traded Between 52.0 - 10,000
Price - Stock Between 1.0 - 200,000

51. Screening For Low P/B And Positive ROE

True bargain-hunters often look at the price-to-book (P/B)
multiple to gauge the value of a stock. P/B multiples below
1.0 suggest that a company is trading below the cost of its
underlying net assets and therefore may be undervalued. Low
P/B values can be the result of difficult business
conditions, a failing business model, negative sentiment, or
sometimes a lack of interest (creating the possibility of an
undiscovered gem).

To weed out those companies that may deserve to trade at low
multiples, it is useful to include other fundamental
indicators in the search strategy. Low P/B And Positive ROE
uses earnings as restrictive criteria to narrow the list of
results. Specifically, the strategy screens for value stocks
with profitable business models.

The two earnings criteria used in the search are return on
equity (ROE) and Earnings Increase Last 4 Quarters. ROE
calculates the profit margin generated off of shareholder's
equity; it is a measurement of how effectively management is
utilizing the company's assets. Earnings Increase calculates
how many times earnings have increased on a year-over-year
basis during the past four quarters. Companies with four
consecutive quarters of earnings growth receive a score of
"4".

Current ratio was used an additional restrictive criteria to
validate the ROE scores. Weak cash balances can result in
low levels of equity, which in turn inflate the ROE. High
current ratios suggest strong balance sheets, which in turn
result in higher equity levels. Companies that possess
strong balance sheets and have high levels of ROE are more
fundamentally sound than those who don't. It is worth noting,
however, that ROE levels vary from industry to industry and
therefore both the current ratio and the ROE ratio need to be
considered in the context of the individual company's
industry.

The strategy is designed for a value-oriented investment
strategy and works well when run on a weekly basis.
Investors can click below to see the current results.

Search Criteria

By subscribing to Wall Street City, investors can utilize
Power ProSearch to build a search like the one below,
created by Wall Street City analysts, to identify stocks
trading below book value and generating positive ROE.

Indicator Mode
------------------------------------------------------------
Price/Book Ratio Between 0.1-0.9
Return on Equity Between 10.0-1000.0, High
EPS Increase Last 4 Qtr Between 3.0-4.0
Current Ratio Between 1.1-1000.0
Volume 30 Day Average Between 1.0-99999.9

52. Searching For New Era Growth Stocks

Earlier this week, David Readerman and Mat Johnson at Thomas
Weisel Partners published a report entitled "The New Era of
Growth Investing". The two theorized, equity investors "are
in a new era of growth investing that requires a blending of
value discipline with an earnings-driven style". In applying
this methodology to stock screening, Readerman and Johnson
sought stocks with the following characteristics: price at
least 5% below the 52-week high, P/B multiple of four or
below, and a P/E ratio at least 25 percent the estimated
FY02 earnings growth rate.

New Era Growth Stocks allows ProSearch users to identify
stocks that fit Readerman's and Johnson's criteria. Similar
to report, the strategy screens for stocks trading at least
5% below their 52-week high and have P/B multiples below four.
In addition, the strategy requires current fiscal year growth
rates of at least 25 percent. Since the objective is to find
stocks that are trading at discounts to their growth rates,
P/E ratios are screened for in the "Low as Possible" mode.

A final criterion, Number of Analysts Current Fiscal Year,
was used to help investors better interpret the results.
Estimates by only one or two analysts could simply reflect
the views of a company's management, while higher numbers of
estimates are less likely to be skewed towards either overly
optimistic or overly pessimistic forecasts.

The strategy is designed for both growth and value investors
and works extremely well for those following G.A.R.P.
methodologies. The strategy can be run as often as on a
daily basis, but works well run on a daily basis. Investors
can click here to see the current results.

Search Criteria

By subscribing to Wall Street City, investors can utilize
Power ProSearch to build a search like the one below,
created by Wall Street City analysts, to identify potential
new era growth stocks.

Indicator Mode
------------------------------------------------------------
High/Low % High Val 52-Wk Between 1.0 - 95
Price/Book Ratio Between 0.1 - 4.0
Proj EPS Current Fiscal Yr Between 25.0 - 100.0, High
P/E Ratio Between 5.0 - 75.0, Low
Analysts No. Cur FY Display Only

53. Stock Search Strategy

Most chartists look at multiple indicators to determine the
sustainability of a price trend. When multiple indicators
all point towards price movement in a particular direction,
the risks of a reversal are lowered. Conversely, when two
or more technical indicators diverge from the current price
trend, the risks of a price reversal become elevated. Many
short sellers look for divergences within technical
indicators as a method for identifying trading candidates.

Divergent Technical Indicators is a search strategy designed
to help traders find stocks with elevated risks of a downward
price reversal. The strategy screens for stocks that have
appreciated in price over the past five days, but may be
encountering resistance or have become overbought. The
parameters for determining such stocks are position of the
stock price to the upper Bollinger Band, distribution - as
measured by Chaikin Money Flow, stochastics scores above 80,
and a negative one week change in the industry group rank.
Each of these indicators is used to identify shifts in
momentum and bearish readings across all four of them
indicate a notable increase in downside risk.

54. Stock Search Strategy

One method of analysis commonly used in rationalizing a
price target is historical valuations. The theory is that
over a period of time, a valuation band forms for a
particular stock and where a stock is trading within this
band determines whether it is undervalued, fairly valued or
overvalued. ProSearch allows subscribers to screen for
stocks according to their Relative P/E multiple, which is a
measure of where a stock's current P/E is proportionate to
its historical high and low.

Stocks Trading Below Their Historic Multiples is a search
strategy designed to find stocks whose current P/E multiples
rank within the bottom third of the five-year valuation band.
Since low comparative multiples may be reflective more than
simply unfavorable sentiment, three other indicators were
included to restrict the results to only those stocks that
may be truly undervalued. Positive one-year revenue growth
rates are required to exclude those companies with slumping
business conditions. Similarly, positive projected earnings
growth is required to eliminate those companies that are not
expected to post better profits next year. Finally, bullish
'analyst ratings were required to eliminate those companies
who are not looked upon favorably by the investment
community.

55. Stock Search Strategy

Covered call strategies are used to realize income from a
stock that is stuck within a basing pattern or to reduce
downside risk. The strategy involves "writing" (selling)
call options on shares of a particular stock already owned
for at an out of the money strike price (the price of the
call option is above the current price of the stock). The
goal of the strategy is to have the stock trade in a
relatively narrow price range, thereby causing the stock to
retain value while the option expires worthless. The writer
of the covered call benefits by collecting the premium (the
cost of the call), without witnessing a material decline in
the value of his stock. Investors should note that with this
type of strategy, commissions on the options trade can have a
material impact on net profits and need to be considered when
a low number of contracts are being sold.

Searching for Covered Call Candidates is a search strategy
designed to screen for optionable stocks trading in a basing
pattern. The strategy looks for stocks with price movements
largely restricted to a 20 percent range during the past 12
weeks, with relatively low levels of volatility. These are
stocks that are exhibiting chart patterns with discernable
short-term support and resistance levels.

56. Stock Search Strategy

The current economic and market environment has placed a
premium on the ability to pick stocks. Unlike the bull
market of the late 1990's, historic track records of strong
earnings performance does not necessarily translate into
actual future growth. The fundamentals and business climates
in many industries have change radically, requiring openness
to sectors and industries not previously considered as
potential sources of investment candidates.

One method of adjusting to this change in the investing
climate is to seek out those companies whose earnings
estimates have been recently been raised. Dividend Paying
Stocks With Rising Estimates is a search strategy oriented
towards reducing risk by seeking out stocks that pay a
regular dividend and have recently seen their earnings
estimates raised.

Screening the universe of dividend paying stocks, the
strategy seeks companies that have both increased earnings
(on a comparable period basis) and exceeded estimates for the
past four consecutive quarters. The strategy then screens
for companies whose earnings estimates have increased during
the past month - a sign of potential upward business momentum.
As a final restrictive criterion, estimates must be made
publicly available from a minimum of four analysts; this is
down to limit the effects of skewing caused by a single
optimistic analyst.

57. Stock Search Strategy

Ask just about any growth investor what the perfect
fundamental combination is for a stock and he'll (she'll)
tell you, "double-digit growth rates, a strong-balance sheet,
and a reasonable valuation". Throw in positive year-to-dat

**s.lemon4** · 24/04/2004, 00:33

57. Stock Search Strategy

Ask just about any growth investor what the perfect
fundamental combination is for a stock and he'll (she'll)
tell you, "double-digit growth rates, a strong-balance sheet,
and a reasonable valuation". Throw in positive year-to-date
performance and most growth investors will have a smile on
their face.

The good news is that even in the midst of the current bear
market, there are stocks that have all of these
characteristics. Fiscally Sound Stocks Trading Below Growth
Estimates is a ProSearch strategy designed to generate a
list of these stocks in a matter of seconds.

The strategy relies on four distinct components: growth,
valuation, balance sheet strength, and technical strength.
The growth component is comprised of projected earnings
growth rates in excess of 25 percent, no negative revisions
in the forecast during the past month, and four prior
quarters of revenue growth. The latter two criteria are
included to eliminate those companies that may be less
likely to achieve strong profit growth in the future. The
valuation component is comprised of forward-looking P/E
multiples of 24 or below. Stocks that trade at multiples
below their projected growth rates may have more upside
potential on a fundamental basis than those that trade at
premiums to their projected growth rates. Balance sheet
strength is defined by high levels of liquidity, as
measured by the current ratio, and reasonable to low levels
of debt. Finally, the strategy requires both a positive
year-to-date return and a price above the 200-day moving
average. These are stocks for which sentiment remains
bullish. Investors may want to note the upper cap on the
200-day moving average indicator of 130 percent; this
restriction is used to eliminate those stocks that might
be overbought or have otherwise become overextended on a
technical basis.

58. Stock Search Strategy

A short squeeze occurs when a stock with a high level of
short interest makes an upside breakout. Those who are
holding short positions may often act quickly to either lock
in profits or limit losses on fear that the stock could
appreciate further. The additional buying pressure sends the
stock price higher, thereby forcing more investors with short
positions to buy the stock, creating even further price
appreciation.

When short squeezes occur, they can provide very profitable
short-term trading opportunities for investors holding long
positions. Short Squeeze Candidates is a search strategy
designed to identify stocks that may be in the early stages
of a short-squeeze situation.

The strategy screens for stocks with short interest ratios of
at least 5.0 that have made a positive MACD breakout within
the past two days. To increase the odds of a sustainable
upward move, the strategy also requires a minimum return on
equity of 10 percent and a reasonable-to-low valuation.
These are stocks with a combination of improving technical
strength and probable fundamental strength.

59. Stock Search Strategy

Unusual Volume Alert screens for stocks that experiencing
significantly high levels of trading activity relative to
their 30-day average volume. Unusually high volume levels
often tip investors off to a news related event that may
affect the fundamental strength of a company or signal that a
technical breakout is occurring. The advantage of using this
search strategy is that it is unbiased by upward or downward
trends and simply scans the equity markets for those stocks
that are experiencing the highest relative increase in trading
activity.

60. Stock Search Strategy

Jeffery Applegate at Lehman Brothers recently called the
current market environment a great time to be screening for
stocks. His argument was that though it might be a tough
time to stomach owning stocks, many good stocks have seen
their valuations become artificially depressed. The question
then becomes what do you screen for?

Bear Market Bargains is a search strategy designed to
identify fundamentally strong stocks that are trading near or
above their long-term trends, as defined by the 200-day
moving average. Over time, fundamentally strong stocks have
the best appreciation potential and the strategy is
predicated on this theory.

To identify fundamentally strong stocks, the strategy looks
at the income statement, the balance sheet and valuation.
Specifically, return on equity, revenue growth trends,
projected earnings growth, balance sheet liquidity, and debt
to equity are all screened for in the restrictive mode.
Valuation, as defined by the price-to-sales ratio, is then
used as an additional restrictive criterion to eliminate
fundamentally strong stocks that are trading at excessive
valuations despite the market's downward spiral.

61. Stock Search Strategy

Technical indicators such as the Wilder RSI, MACD,
stochastics, and moving average are used to assist investors
in timing a trade. Used by themselves, the individual
indicators can improve investment decisions, though none of
them are completely fail-safe. In fact, many professional
traders have differing opinions on which indicator is the
most reliable. Used in conjunction with one another,
however, the effectiveness of technical indicators as a tool
for timing trades, greatly increases.

Screening for Multiple Technical Breakouts is a highly
restrictive search strategy that screens for stocks that may
be on the verge of starting a new upward trend. The strategy
identifies stocks that have made a positive 8/17/9-Day MACD
breakout within the past three days. The strategy then looks
to three other technical indicators for confirmation that a
new upward trend may have begun. Bullish signals from two or
more technical indicators improves the likely that a stock is
the process of making a definitive upward breakout.

62. Stock Search Strategy

Covered call strategies are used to realize income from a
stock that is stuck within a basing pattern or to reduce
downside risk. The strategy involves "writing" (selling)
call options on shares of a particular stock already owned
for at an out of the money strike price (the price of the
call option is above the current price of the stock). The
goal of the strategy is to have the stock trade in a
relatively narrow price range, thereby causing the stock to
retain value while the option expires worthless. The writer
of the covered call benefits by collecting the premium (the
cost of the call), without witnessing a material decline in
the value of his stock. Investors should note that with this
type of strategy, commissions on the options trade can have a
material impact on net profits and need to be considered when
a low number of contracts are being sold.

Searching for Covered Call Candidates is a search strategy
designed to screen for optionable stocks trading in a basing
pattern. The strategy looks for stocks with price movements
largely restricted to a 20 percent range during the past 12
weeks, with relatively low levels of volatility. These are
stocks that are exhibiting chart patterns with discernable
short-term support and resistance levels.

63. Stock Search Strategy

Two signs of fiscal stability are dividend payments and
insider buying. Dividends represent the distribution of
corporate earnings to shareholders and can only occur when
cash levels are healthy. Insider buying is generally
presumed to reflect optimism on the part of corporate
executives regarding their companies' outlook. More
conservative investors often look for both characteristics
as a means of reducing risk.

Dividend Paying, Value Stocks With Insider Buying is a highly
restrictive search that screens for stocks with lower than
average risk profiles. The strategy screens for three key
characteristics: a low valuation, quarterly dividend payments,
and insider buying. Low valuations are subjectively defined
as a Price-to-Sales (P/S) multiple below 1.5. A minimal
dividend yield of two percent is required to guarantee a
stream of income, regardless of what the stock price does.
The five-year dividend growth is included in the "Display
Only" mode as an additional means to assess the stock's risk.
Insider Trades calculates the number of net purchases by
insiders during the past six months. It displays the extent
to which the insider trades exceeded the number of insider
sells.

64. Stock Search Strategy

Insider buying and short interest ratios are two indicators
used to gauge the future direction of a stock. Insider
buying indicates optimism on the part of company executives,
and other related persons, of future price appreciation.
Often, insider buying is viewed as a precursor to positive
news. Conversely, high short interest ratios suggest
pessimism on the part of market participants, particularly
hedge funds and institutional traders. Short interest is a
measure of sentiment towards the outlook for a company and
high levels suggest many doubt the stock will appreciate in
the near-term.

When insider buying occurs in a stock with a high level of
short interest, a divergence of opinion exists. This either
foreshadows a future short-squeeze or may indicate too much
optimism on the part of company insiders. Stocks With Insider
Buying And High Short Interest Ratios is a search strategy
designed to clear through this dichotomy by identifying those
stocks with the highest chance of rising upwards in the
near-term.

The strategy accomplishes this through the use of technical
analysis. First, the strategy identifies stocks with both
insider buying and high short interest ratios that are
trading near their six-week highs. A new six-week high often
accompanies a break through resistance and is seen as a
positive short-term occurrence. Then the strategy screens
for a positive, three-week change in the
accumulation-distribution ration. Increases in the
accumulation-distribution imply that buyers are gaining
control of the stock price movement.

65. Stock Search Strategy

Growth stocks are identified as having historic increases in
revenues and earnings as well as the expectations for
continued growth into the future. Very often, such stocks
are valued according forecast future earnings. The inherent
risk with relying on future earnings as a guide for valuation
is whether or not the forecast is achievable. One way to
lower this risk is to look at stocks with incidents of insider
buying. These are companies whose insiders believe strongly
enough in the future prospects, that they are willing to back
their guidance with their own money. Growth Stocks With
Insider Buying identifies such stocks.

The strategy defines growth stocks as having four consecutive
quarters of revenue and earnings growth. Furthermore, these
stocks must be expected to post double-digit growth next year
and have not had their forecast guided downwards within the
past month.

The results are then further restricted by a final criterion
requiring a minimum of four net insider purchases. Insider
Traders calculates the difference between the number of
insider purchases relative to the number of insider sells
over the past three months. Higher numbers indicator a
greater proportion of insider buys.

65. Stock Search Strategy

One very evident characteristic about the current bear market
is the weakness in the IT industry. After having driven the
bubble of the late 90's and early 2000, tech companies have
completely imploded. The carnage is widespread with many
companies seeing their prices drop below five dollars and
multiple IT professionals out of work.

Even in the worst of industry conditions, however, there are
always companies with positive momentum. Using the "sector"
criterion in ProSearch, we've created a search strategy to
identify tech companies that are not only weathering the
current storm, but are continuing post double-digit revenue
growth.

Computer Sector Stocks With Revenue Growth & Low Valuations
screens stocks within the following industry groups -
Computer {.DAT}, Computer/Components {.DCO},
Computer/Computer Services {.DSE}, Computer/Computer Systems
{.DCS}, Computer/Leasing/Distributor {.DLD},
Computer/Peripherals {.DPE}, and Computer/Software {.DSO}.
Growth is defined as a minimum 10 percent increase in
revenues with no negative revision to earnings estimates
being made within the past 30 days. This latter requirement
is used to exclude those companies that may be losing
momentum. Reasonable valuations are defined as
price-to-sales (P/S) ratios below 3.0.

Two additional criteria, current ratio and debt-to-equity
(D/E), are used in the restrictive mode to ensure fiscal
stability. The current ratio measures balance sheet
liquidity by calculating the proportion of current assets to
current liabilities. The D/E ratio calculates how leveraged
a company is.

66. Stock Search Strategy

The direction of the major stock indices is driven primarily
by large-cap stocks. Particularly, the S&P 500 and the
Nasdaq are very affected by how their largest members trade,
since both are market cap weighted averages. In other words,
the greater the market capitalization, the greater the
weighting a company is awarded in an index.

Investors can take advantage of upward moves in the major
indexes by identifying the large-cap stocks that are driving
the advance through search strategies such as Large-Cap
Stocks Displaying Technical Strength. This search strategy
screens for stocks with market capitalizations above $10
billion and a high short-term technical ranking. The
Technical Rank criteria is a proprietary ProSearch indicator
calculated by combining MACD, relative volume levels,
relative performance, and the stock's price relative to its
moving averages; it is a proxy for how a stock has performed
and may be expected to continue to perform over the
short-term.

In addition to technical rank, the 50-day moving average
criterion was used in the restrictive mode to limit the
results to only those stocks trading above their intermediate
trendline. Since technical rank represents a score and not
a percentile ranking, using it in the restrictive mode
creates difficulties for changing market conditions. By
instead using it in the relative mode and then screening the
results through the inclusion of a second criteria, the
search strategy becomes much adaptable to a variety of market
conditions. This means that even in downtrending markets,
the strategy can still be used to identify those large cap
stocks that are showing upward momentum.

The strategy is designed for investors who are looking for
short-term trading opportunities. The strategy should be
run on a daily basis, though it may be useful on intraday
basis during volatile market conditions.

67. Stock Search Strategy

Stocks with a history of consistent dividend increases
provide the opportunity more than simply a stream of income
along and a chance of price appreciation. Sustained
increases in dividends provide an additional hedge against
inflation and shorten the period to time required to recoup
the initial capital invested, thereby increasing the
opportunity for profits.

Value Stocks With Dividend Growth screens for stocks selling
at P/S multiples below 1.0 with a history of rising dividends.
This highly restrictive search requires companies to have
increased dividends at least 15 times out of the past 20
quarters and to have grown earnings during each of the past
four quarters. The latter requirement is used to increase
the odds that dividends payments will continue to increase
in the future.

68. Stock Search Strategy

The moving average convergence/divergence is an oscillator
commonly used to time buy and sell decisions. Most often
traders look for moves by the MACD above the signal line as
a sign to buy a stock and moves below the signal line as a
sign to sell the stock. Though effective, the MACD can be
even more powerful when used in conjunction with other
indicators to identify the beginning of potential new trends.

MACD Rebounds uses the MACD in combination with the
accumulation distribution ratio and recent price action to
identify stocks in the early stages of a rebound. The
strategy screens for stocks with MACD histograms near the
signal line and a positive MACD delta. The delta calculates
the movement in the MACD with positive scores indicating an
upward rise in the MACD histogram. A positive change in the
accumulation distribution ratio is required to restrict the
results to only those stocks with influx of buying volume.
Finally, a positive one-week return is used an additional
indication that stocks are moving upward in price.

69. Stock Search Strategy

Put options give you the right to sell a stock at a specified
price at some point in the future, up until the date of
expiration. Traders often by puts instead of shorting a
stock because the potential percentage gain is larger, while
the potential loss is limited to the price of the option
contract. Similar to shorting a stock, traders buy puts
based on the assumption that the stock will depreciate in
value.

Screening for Put Plays screens for optionable stocks
exhibiting a high amount of downside risk. The goal of this
search is to identify stocks whose recent upward moves have
stalled out after reaching resistance levels and are
threatening to reverse back downwards.

The strategy identifies such stocks by using two technical
indicators: the 30-day moving average and the MACD. The
30-day average is used as a proxy for short-term resistance.
The MACD is utilized to measure both oversold conditions and
a negative shift in momentum. The strategy screens for
stocks with MACD scores above the signal line - indicative
of recent gains - and a low to negative MACD delta. The
delta measures the rate of change in the MACD score
(histogram), with negative deltas signaling a declining
score.

70. Stock Search Strategy

The allure of penny stocks is that even nominal movements in
price can result in material gains for investors because of
the law of percentages. For instance, a 1/8 point move in a
stock priced at 25 equates to a gain of only 0.5 percent
whereas a 1/8 point move in a stock priced at .50 equates to
a gain of 25 percent.

Penny Stocks Moving On Unusual Volume is a search strategy
that is designed to aid investors in identifying stocks
priced between 0.01 and 2 that are moving upward on strong
volume. These stocks are either testing their six-week highs
or are in the midst of establishing a new six week high, and
therefore may be providing short-term trading opportunities.

The strategy accomplishes this task through the relative and
restrictive use of volume criteria. The 1-Day Volume
criterion is set in the rank mode to favor those stocks that
are trading at the highest proportionate level of volume
relative to their 30-day average. Current daily volume and
30-day average volume are set with a minimum requirement of
5,000 shares per day to eliminate stocks that do not maintain
enough liquidity to trade on a daily basis; such stocks
could otherwise skew the results by coincidentally receiving
volume on the day that the search is run. In addition to
these criteria, Stock Exchange is also used in the restrictive
mode to limit the search results to only those stocks that
are trading on the U.S. exchanges.

71. Stock Search Strategy

The fourth quarter typically puts retail stocks into the
investment spotlight. Should fears about a weak holiday
shopping season get validated, several retail stocks could
see their share prices depreciate. Conversely, should the
season turn out to be not as bad as expected, retail stocks
could perform extremely well.

Investors who are looking to get exposure in the retail
sector can lower the inherent level of risk by focusing on
stocks with low valuations. These are stocks that are
trading at discounted multiples and therefore have a lesser
chance of staging a sharp drop in price. Cheaply Valued
Retail Stocks is a search strategy designed to identify such
stocks.

The strategy screens for stocks with in the retail sector
with P/S multiples below 2.0 and P/E multiple ratios below
20. To further limit downside risk, the strategy eliminates
those stocks with a recent negative earnings forecast
revision, have missed earning estimates during the any of the
past four quarters, or have not generated one-year sales
growth of at least five percent. Dividend yields, where
applicable, are displayed for those investors seeking an extra
level of risk protection.

72. Stock Search Strategy

The 50-day moving average tracks intermediate-term price
movement and often serves as a measure of support and
resistance. Stocks that trend well will often rebound after
testing their 50-day moving average and move upwards towards
new highs.

A moving average breakout occurs when a stock's price crosses
the moving average, either below it or above. Often with a
well trending stock, the price will occasionally drop below
its 50-day moving average (a negative breakout) before
rebounding back above it (a positive breakout). Positive
breakouts will also occur when a stock moves out of a trading
range or begins to show upward momentum after a period of
lackluster and/or negative sentiment.

Stocks Charting 50-Day Moving Average Breakouts screens for
stocks that have risen above their 50-day moving average
during the past two days. The results are restricted to
those stocks that have broken out on stronger than average
volume and have positive levels of ROE. Higher than average
volume suggests conviction on the part of buyers as opposed
to a price increase caused simply by apathy among sellers.
The ROE criterion is used because earnings growth is what
ultimately drives price appreciation. Numerous of tests of
strategies using technical indicators have resulted in higher
backtested returns when ROE is used in combination with a
positive breakout.

72. Stock Search Strategy

One popular trading method among value-oriented investors is
to buy beaten-down stocks with strong underlying
fundamentals. These stocks are often referred to as "fallen
angels" because, though their financial condition and growth
prospects are positive, they are priced at relatively low
valuations compared to their historic ranges. The problem
with finding these stocks, however, is the amount of time
required to determined which stocks are actually relative
bargains and which deserved to see their prices spiral
downward.

Fallen Angels is a search strategy designed to sort through
stocks that are trading below their 200-day moving averages
and find those with favorable underlying fundamentals. The
strategy accomplishes this task by looking for companies with
positive revenue and earnings growth and acceptable to strong
balance sheets. Earnings surprise criteria are also used to
find those companies that have had a history of exceeding
analysts' estimates, even if they missed the consensus
estimate during one of the previous four quarters.

73. Stock Search Strategy

Trading stocks over and over within a channel is a popular
strategy among many technically oriented traders. A channel
occurs when a stock oscillates within a price range over a
period of time. Channel trading involves buying a stock at
the bottom of its channel, selling it at the top of its
channel, and then buying the stock back again at the bottom of
its channel. The idea being that money can be made by trading
the same stock over and over again. More aggressive traders
take the strategy a step further and go both long and short,
depending on whether the stock is rising or falling within its
trading pattern.

Low Priced Channeling Stocks is a search designed to identify
stocks priced between $5-$25 that are oscillating in a
discernable range. The strategy accomplishes this by
screening for stocks without material fluctuations in price
during multiple time periods ranging from one week to 26 weeks.
To further limit excessive price moves, relatively narrow
Bollinger Band width and low levels of volatility are also
screened for.

74. Stock Search Strategy

There exists an investing theory that states it's better to
buy a low-priced stock than a high-priced stock. The theory
is based on the law numbers, which states a $1 change in a $5
stock will generate a higher percentage return than a $1
change in a $50 stock. While low-priced stocks do generate
higher dollar-for-dollar percentage returns, they often carry
considerably more downside risk. The reason for this is that
many stocks are cheaply priced for a reason. In other words,
industry conditions, poor management, and/or inferior business
models have resulted in the stock being priced in the single
digits.

This is not to say, however, that all stocks priced below $10
are poor investments. To the contrary, there are low-priced
stocks worth justifying a closer look by investors.
Fundamentally Sound Stocks For Under $10 is a search strategy
designed to identify such stocks.

The fundamental parameters of the search strategy are based
on earnings growth, balance sheet strength, and valuation.
The earnings requirements are four consecutive revenue and
profit growth, no recent negative revision to current year
estimates, and forecast double-digit earnings growth for next
year. The balance sheet requirements are a current ratio of
at least 1.4 and debt/equity ratio of below 50; combined
these criteria eliminate overly-leveraged companies. Finally,
the results are restricted to those companies trading at a
price/sales multiple of 1.8 or less.

75. Stock Search Strategy

Despite a lack of publicity, information, and often
liquidity, penny stocks continue to capture the minds of many
investors. Whether it's the hope of high percentage returns
or the ability to buy shares of multiple companies with a
relatively low amount of capital, penny stocks just have a
certain je ne sais quoi.

The two biggest problems with investing in penny stocks are
the lack of available information and low volume levels.
Though publicly traded companies are required to file with
the SEC, financial data companies don't always publish
profiles of penny stocks. Furthermore, analyst and media
coverage is often non-existent. This contributes to the
reduced trading volume, which can in turn increase the
influence of rumors.

In an effort to avoid these potential pitfalls, investors may
want to place an increased emphasis on insider trading.
Stock purchases by company executives indicate optimism on
the future prospects, especially when material buys are made
by several company executives.

Two additional criteria were included, average volume and
quarterly revenue growth, to improve the search results. A
minimum daily average volume of 25,000 shares was required to
ensure that some type of market for the shares existed.
Stocks with less volume may not necessarily trade on a given a
day or may only trade a few blocks of shares. Revenue growth
for at least three out of the past four quarters was required
to eliminate those stocks experiencing financial difficulties.

76. Stock Search Strategy

One method of investing favored by many stock pickers is to
seek out fiscally strong companies that have been largely
ignored. These are companies whose stocks are not widely
held, but are fundamentally sound. The upshot to finding
these companies is that if they are successful in executing
their business plans, the potential exists for higher than
average levels of return due to growth in popularity; in
other words, as more investors find out about the stock,
buying pressure swells and the price jumps. Though this is
not a method that works well for short-term trading,
investors with long-term horizons, and the patience to wait
for attractive entry points, may benefit from following such
a strategy. Searching For Undiscovered Fiscal Strength makes
it easy for investors to identify fundamentally strong
companies whose stocks are not widely held.

The characteristics that comprise an "undiscovered" stock are
a low percentile of institutional ownership and low levels of
average trading volume. Combined, these two criteria suggest
that not only are institutional investors not holding the
stock, but also hedge fund traders mostly are not giving it
the time of day either.

Fiscal strength is defined a solid balance sheet combined
with earnings growth. High current ratios are required not
only to look for high levels of financial liquidity, but also
to increase the likelihood that the cash per share ratio is
high. Velocity is a measure of earnings growth and the
higher the rate of velocity, the faster the pace of earnings
growth.

The minimum of a 52-week trading history is used in
conjunction with the financial indicators to prevent skewing
caused by a company that has recently gone public. Post-IPO
stocks often have very high levels of cash and are generally
less widely followed than more established stocks with similar
market capitalizations.

77. Stock Search Strategy

The primary focus of this earnings season will not be so much
on how companies performed during the fourth quarter, but
rather what their 2003 guidance is. Valuation levels for
many stocks have risen materially over the past few months on
the anticipation of an economic rebound occurring this year.
In order for these valuation levels to be sustained, earnings
will have to show a dramatic improvement. Those companies
that issue better than expected earnings results and guidance
may be the ones to receive the most favorable attention from
investors over the coming the months. Stocks With Rising
Earnings Estimates That May Top Expectations identifies such
companies.

The search strategy is built around two key criteria - a
streak of at least four consecutive quarters of positive
earnings surprises and a recent upward revision in the
earnings forecast for the current year. The first criterion
establishes that a precedent exists for the company to top
expectations, while the second criterion suggests that
business conditions have continued to improve. Combining
these two criteria results a list of companies that are
continuing to thrive in the current climate and have a track
record of beating analyst estimates.

Using the two criteria by themselves would result in a
limited list of stocks, but to improve the validity of the
search, we added four additional criteria. Earnings
estimates from a minimum of four analysts were required to
limit the skewing effects of one overly bullish analyst on
the earnings forecast for the current year. Four quarters
of revenue growth was required limit the results to only
those companies that increasing the topline and not just
relying on cost-cutting measures to improve profits.
Similarly, requiring a sequential positive change in revenue
between the previous two quarters, suggests that the sales
growth curve has not been reversed by the recession.
Three-week relative performance of no less than 80 percent
was required to eliminate those companies may have dropped
precipitously over the past few weeks - precipitous drops
suggest that sentiment is against a positive earnings
announcement.

78. Stock Search Strategy

Active traders looking to take advantage of market and
stock-specific volatility often find the highest returns by
identifying a stock in the early stages of a new trend.
While some investors prefer to wait for a confirmation of a
new trend before entering into a position, active traders may
find it useful to be even more aggressive and catch stocks
just before or right as a new trend is beginning. Screening
for Upward Trend Reversals is a search strategy designed to
find stocks on verge of trending upward.

This contrarian strategy screens for oversold stocks in
situations where the stock appears to have found a support
level and momentum is showing signs of shifting from negative
to positive. Oversold conditions are identified by screening
for a Wilder RSI score of below 30. Support levels are
identified by requiring a stock to be at or near its lower
Bollinger Band. Momentum shifts are screened for looking
below average volume, an indication that selling pressure has
dissipated, and a positive MACD delta.

79. Stock Search Strategy

A school of thought exists that the greatest long-term
returns come from those companies which consistently increase
their dividends. The basis for this theory is that over time
the combination of an appreciating stock price and a rising
dividend will be greater than the simple return of a
non-dividend-paying stock. Proponents of this theory point
out that in order for a company to consistently increase its
dividend, it must be fiscally sound and generate earnings
growth year after year, thereby making itself more attractive
to equity investors.

Stocks With Consistent Dividend Growth is a strategy designed
to find which companies have increased their dividend the
greatest number of times during the past five years. To put
the growth in perspective, 10-year dividend growth is also
screened for. (10-year growth was not screened for in the
restrictive mode, however, in order to not penalize those
stocks without a 10-year trading or dividend history).

While the search strategy could have been simply limited with
those criteria, we went a step further by requiring a
reasonable valuation, positive return on equity (ROE), and
bullish analyst ratings. Valuations were capped at a
price-to-sales (P/S) multiple of 2.0 to eliminate those stocks
that may be excessively valued. A minimum return on equity of
5.0 percent was required to increase the odds that the dividends
will continue to be increased in the future. Finally, a "strong
buy" rating was required to exclude those companies experiencing
tough business conditions or otherwise viewed not so favorably
by the analyst community.

**s.lemon4** · 24/04/2004, 00:35

80. Stock Search Strategy

The Chaikin Money Flow indicator measures price movement
relative to volume. It is based on a similar theory as the
accumulation/distribution ratio, but instead of merely
measuring in changes in volume relative to price movement, it
considers the actual price range. Specifically, the Chaikin
Money Flow indicator calculates where a stock closed relative
to its intraday range proportionate to volume.

Chaikin Money Flow works well when combined with other
technical indicators to confirm the strength of an upward
trend. Growth Stocks With Positive Money Flow combines
Chaikin Money Flow with a positive delta in the momentum
indicator to create a list of growth stocks that may be
likely to continue their recent upward trends. The delta
measures the rate of change in the momentum histogram;
positive deltas suggest rising levels of momentum - a bullish
sign.

Swing traders will find the strategy useful for identifying
stocks with upward trends that may be likely to appreciate
further over the short-term. Investors with longer-term
horizons may also find the strategy useful for identifying
growth stocks trading on a favorable sentiment. The strategy
can be run as often as on an intraday basis.

81. Stock Search Strategy

Over a period of time, a stock generally will develop a range
of valuation multiples in which it has traded in. Long-term
investors often look at this range to determine whether a
stock is overvalued, undervalued, or fairly valued. Barring
a negative change in business conditions, stocks trading at
the lower end of their valuation range are often viewed as
relative bargains.

Stocks Trading At Historically Discounted Valuations is a
search strategy designed to find stocks trading at the lower
end of their valuation ranges, but continuing to exhibit
earnings growth. These are stocks that have may have seen
their multiples contract because of market conditions or
because their industry group has fallen out of favor, but not
because of lackluster growth prospects.

The strategy initially screens for stocks trading within the
lower 25 percent of their five-year P/E multiple range. The
strategy then narrows down on earnings growth, requiring both
a history and a forecast future of double-digit percentile
earnings growth. This is to eliminate those stocks whose
multiples have contracted because prior growth expectations
have not been met and/or whose future is less likely to be
positive. Finally, a history of dividend growth is required
to ensure financial stability and to provide a stream of
income to long-term investors.

82. Stock Search Strategy

Bear markets can present great opportunities for long-term
investors willing to rely heavily on value-based bottom-up
stock picking strategies. This involves finding attractive
stocks with historically cheap valuations.

Historically Cheap With Rising Estimates is a search strategy
designed to find such stocks. The strategy screens for
stocks with P/E ratios ranking within the bottom 25 percent
of their respective five-year ranges. The resulting list of
stocks is then narrowed down to those that have topped
earnings estimates during at least three of the last four
quarters and have had their consensus estimates upped within
the past 30 days.

Since value investing can involve a longer time horizon, the
technical criteria used in this strategy has also been
adjusted accordingly. The 200-day moving average, Stochastics
14/5-Week, and MACD Histogram 8/17/9-Week indicators are used
to eliminate those stocks that are overbought based on a
long-term perspective.

83. Stock Search Strategy

Put options give you the right to sell a stock at a specified
price at some point in the future, up until the date of
expiration. Traders often by puts instead of shorting a stock
because the potential percentage gain is larger, while the
potential loss is limited to the price of the option contract.
Similar to shorting a stock, traders buy puts based on the
assumption that the stock will depreciate in value.

Screening for Put Plays screens for optionable stocks
exhibiting a high amount of downside risk. The goal of this
search is to identify stocks whose recent upward moves have
stalled out after reaching resistance levels and are
threatening to reverse back downwards.

The strategy identifies such stocks by using two technical
indicators: the 30-day moving average and the MACD. The
30-day average is used as a proxy for short-term resistance.
The MACD is utilized to measure both oversold conditions and
a negative shift in momentum. The strategy screens for stocks
with MACD scores above the signal line - indicative of recent
gains - and a low to negative MACD delta. The delta measures
the rate of change in the MACD score (histogram), with
negative deltas signaling a declining score.

84. Stock Search Strategy

Stocks Trading at 52-Week Highs is a search strategy designed
to screen for stocks that have established new 52-week highs
on elevated volume. The strategy is useful for identifying
stocks that are experiencing strong upward momentum.ore.

Though the concept may seem overly simplistic, the strategy
has consistently generated market-beating results for the
past several years, including during both bull and bear
markets. The reason for this outperformance is that by
constantly scanning for stocks that are in the midst of an
upward trend, investors can navigate practically any type of
market turbulence. Even when the Dow and the Nasdaq have
sustained material percentile losses, there are always stocks
that are trending higher, giving investors the ability to
profit from holding long positions. This search strategy is
not without risks, however, and investors should note that the
ability to identify when a stock's upward trend has ended is
important to maximizing returns.

85. Stock Search Strategy

The most traditional and accepted measures of valuation center
around cash flow. This is because free cash flow is
ultimately what builds shareholder value; whether it's paid
back to investors in the form of dividends or is invested back
into the company to fund future growth.

Simply identifying cash flow companies, however, does not
automatically guarantee positive investment returns. Business
conditions can change or market sentiment may shift against a
company or a sector. Cash Flow Positive Stocks With Upward
Trends reduces this downside risk by screening for cash flow
positive companies using a "bottom-up" approach.

The primary focus of the search strategy is to identify those
companies that have generated positive cash flow growth during
the past four quarters. The strategy then builds upon this
base by screening for expected earnings growth of at least 15
percent and a recent upward revision in the forecasts. These
requirements eliminate those companies coming under difficult
business conditions. Finally, two technical indicators - the
200-day moving average and momentum rank - are used to screen
for intermediate-term upward trends.

86. Stock Search Strategy

Stocks that have a made strong upward move often get the
reputation for being overvalued. While on a technical basis,
strong upward moves do typically cause overbought conditions,
the underlying valuations may still suggest that further
upside is possible. Hot Stocks That Are Still Reasonably
Valued is a search designed to find such stocks.

The strategy screens for stocks that have appreciated by a
margin of at least 15 percent during the past three weeks,
but still trade at less than 2x sales. Stock valuations are
then furthered qualified by requiring a discounted
forward-looking P/E ratio and a historically low current P/E
ratio. (The current P/E ratio divides price by earnings for
the previous four reported quarters).

87. Stock Search Strategy

Institutional investors are typically pension funds, endowment
funds, mutual funds and other large investment groups.
Because these organizations employ staffs of professional
money managers and have a heavy influence of overall market
volume, institutional money is typically referred to as "smart
money". As the nickname implies, the perception is that
institutional investors spend more time investigating
companies and therefore make better stock picks. Whether
institutional money is actually smarter is the subject of much
debate, but it is always interesting to see where the smart
money is going.

Institutional Investors' Favorite Dividend Stocks is search
strategy designed to allow individual investors ("retail
investors") see what dividend stocks have the highest
percentage of institutional ownership. The Institutional
Holdings % indicator simply calculates what percentage of
total outstanding stock institutional investors own. To
avoid situations where a small group of institutional
investors own the overwhelming majority of a single company,
ownership by at least 200 institutions is required.

To help investors gauge whether or not the institutional
money is really smart, four indicators have been included in
the "Display Only" mode in addition to Dividend Yield.
Dividend Consistency calculates the number of quarters a
company has boosted its dividends; higher numbers are bullish.
The P/E ratio is a measure of valuation. Insider trades
calculates the net number of purchases by company insiders
over the past 12 months; positive numbers indicate buying and
negative numbers indicate selling. Rank Long-term Technical
is a proxy for the relative price performance of a particular
stock against all stocks; its values range from 0-99 with
higher scores representing bullish price patterns.

**Pognon_Hunter** · 24/04/2004, 19:46

Salut S.LEMON4

merci pour les infos.

Le lien du site est :

http://www.wallstreetcity.com/

Bye

PH

**lechat** · 27/04/2004, 16:17

Très intéressant, mais si j'ai bien compris, toutes ces stratégies nécessitent des informations qui ne sont accessibles que via "WallStreetCity's ProSearch tool".
J'ai essayé de comprendre ce qu'est le "rank momentum" et après diverses fouilles avec google j'ai trouvé les choses suivantes :
certains sites américains classent les actions d'un marché (NYSE,NAS ...) en fonctions de certains critères ATistes ou d'analyse fondamentale (momentum, PER, ...) et les répartissent en centiles : les 1 % qui ont le meilleur résultat selon le critère ont la note 100, les 1 % suivant ont la note 99 etc..., les stratégies consistent ensuite à affecter des poids à quelques critère et à acheter les N actions qui ont le meilleur résultat, ce qui peut donner de bons résultats. L'inconvénient est la nécessité d'avoir accès à ces bases de données, d'autre part je ne suis pas sur de pouvoir faire un backtest avec les données disponibles.
Si quequ'un s'abonne, ce serait sympa de nous dire quels sont les résultats obtenus.

lecture du week end

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