Sunday, November 16, 2008

Clarification on Equity Grading System

It was recently pointed out to me that my little grading tool was giving some low scores to seemingly solid stocks. I should have noted that the scores produced are only valid on a month to month basis and are intended for swing trading only, and not long term.

Also, I would like to thank all of you on the feedback I have been getting. It is very encouraging to know that people are actually seeing my posts. My goal is to help people to make a little money in these crazy times. Any suggestions or comments are always welcome.

Have a good one,
Roger

10 comments:

  1. thanks for responding to my question Roger. I appreciate it. Can I ask you a clarifying point on your statement "I should have noted that the scores produced are only valid on a month to month basis and are intended for swing trading only, and not long term." Is it only valid for a month due to the short ratio, I can't think of why else you would say that as the financial ratios can only be based on quarterly or annual numbers. In such a volatile market are their modifications you suggest when viewing the results of the model?Thanks fro the help, just trying ot understand and it is an awesome tool!

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  2. Actually, yes, the short ratio weighs heavily in the calaulation and that is exactly why I don't see this tool being helpfull other than a month to month basis. In a volatile market, the scoring is not really reflective of what an equity might do in high volatility. It generally gives the short term tendancy given all things equal including a steady market. I can't think of any modifications thst would help other than viewing the scores with the stock futures in mind on a day to day basis. Any gain, even a short quick one, is a good gain in a volatile market.

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  3. roger thanks a ton, clarification was helpful.

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  4. Roger,
    Which edition of Stock Assault do you use (Stock Assault or Stock Assault Diamond)? If you use the Diamond edition with its grading system, do you include that grading into your stock analysis? On the results page on the Stock Assault Diamond web page- http://www.stockassault.com/sa/stock-assault-20-diamond-edition.html the results are mostly based on "A" graded stocks which were graded by the Diamond Edition. The Diamond edition often has stocks that are graded from A to E, A being the best. Would you consider anything below an A? Lots of questions, hope thats ok?
    Kevin
    clapp.carlson@gmail.com

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  5. I do use Diamond Edition, and I actually depend more on its grading than my own. My grading helps me sift through the lower picks, if I analyze them at all. I only go with the "A" picks myself, but I've seen lower ones do very well.

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  6. Great little spreadsheet Roger. I took the spreadsheet and added in formulas using the RCH add-in to automate the whole process. All I have to do is type in the ticker symbol and all the other data is pulled from Yahoo!. I would be happy to send this to you. You have to search for "RCH Stock Market Add-in". You download it from the Yahoo Group. Then tell Excel about the add-in so it knows what to do with the formulas. Let me know where to send the file back to. Sean.

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  7. Sounds good. Thanks for the info. You can send it to bkmgmt@richm.twcbc.com . Thanks again.It is a simple little sheet, but it is a basic start.

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  8. Roger,

    Great spreadsheet and helpful posts in general. Thanks for your time in helping others. I hope you will post the revised spreadsheet when you are finished.

    Thanks in advance,
    Jeff

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  9. Hi,
    I have read through your blog and it is really fascinating! Can you put on your page for download the file Sean is reffering to in an earlier comment on this page? I mean the spreadsheet "with added formulas using the RCH add-in to automate the whole process. All I have to do is type in the ticker symbol and all the other data is pulled from Yahoo!."
    Thank you!
    Richard

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  10. @Richard
    Actually, I never got that updated sheet. I did download the RCH add-in, but I have never done anything with it yet.

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