|
PureBytes Links
Trading Reference Links
|
Dan, how long do you stay in? Do you give the O'Shaughnessy fundamentals
time enough to "work"? I think you need to hold for the long term on these
stocks; at least my observation of stocks picked on the O'Shaughnessy basis
in Telescan ProSearch suggests this is so.
Al
Al Stephens
> -----Original Message-----
> From: owner-metastock@xxxxxxxxxxxxx
> [mailto:owner-metastock@xxxxxxxxxxxxx]On Behalf Of HARELSDB@xxxxxxx
> Sent: Saturday, August 01, 1998 1:44 AM
> To: metastock@xxxxxxxxxxxxx
> Subject: Re: Cool Website
>
>
> I generally agree with Richard Estes regarding the value of fundementals,
> however, there is a perspective where I believe fundementals add
> value. That
> perspective is an actuarial view.
>
> Just as insurance companies segment a market to exclude high risk
> clients, a
> speculator or investor can segment a market to exclude (or
> include) high risk
> (or high return) trades. In James O'Shaughnesey's study of "What Works on
> Wall Street", the author evaluated various fundemental parameters against
> historical returns. My reading of this study indicated that
> stocks with a low
> price to sales ratio and a high relative strength represented a
> segment that
> generally outperformed the market.
>
> I use price to sales and relative strength to identify a market
> segment and
> then use technical analysis to select prospects from this segment.
> Unfortunately, I lose money more often than I would like using
> this approach.
>
> FWIW
>
> Dan Harelson
> Pocatello, ID USA
>
|