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There would be even less clutter if YOU, GUYS, SENT YOUR REQUESTS DIRECTLY TO GUY TANN!
Jay Wojo wrote:
> There would be a lot less clutter if you would just post it here!
>
> ----- Original Message -----
> From: "Robert Bennett" <robertbennet@xxxxxxxxxxxxx>
> To: <metastock@xxxxxxxxxxxxx>
> Sent: June 01, 2000 8:31 PM
> Subject: Re: Picking our stocks
>
> > Yes - Please send the sheets
> > Thank you
> > Bob
> > ----- Original Message -----
> > From: "Guy Tann" <grt@xxxxxxxxxxxx>
> > To: "Metastock User Group" <metastock-list@xxxxxxxxxxxxx>
> > Sent: Thursday, June 01, 2000 11:59 AM
> > Subject: Picking our stocks
> >
> >
> > > List,
> > >
> > > If anyone is interested, I have an Excel spreadsheet that I put together
> > > with 3 pages. The first page lists those 13 stocks we selected out of
> the
> > > original 55 gleaned from ValueLine. The second page is a quick analysis
> > of
> > > what would have happened if we had bought all 55 of the list, and the
> > third
> > > page shows our breakout of 25 stocks from the original 55 using one of
> our
> > > programs to determine over-bought or over-sold conditions. These 25
> > stocks
> > > were, according to our system, ready to be bought.
> > >
> > > If anybody is interested, I can send them a copy, but didn't want to
> just
> > > throw it out on the list.
> > >
> > > Our stock selection technique is as follows:
> > >
> > > 1) Friday night, we go out on the ValueLine web site and go down to
> their
> > > stock pages. We select those stocks that have a 1 in timeliness, and a
> 1
> > or
> > > 2 in whatever the second column is to the right of timeliness. We look
> > for
> > > a beta > 1.25. I think we snuck INTC in as well. This is our
> preliminary
> > > cut. This gave us a list of 55 different stocks. We try to stick with
> > the
> > > top performing industries.
> > > 2) In the next step we apply one of our trading programs to each stock,
> to
> > > determine whether or not our program indicates that the stock was
> > over-sold.
> > > If it was over-sold, we added the stock to our next list. This reduced
> > the
> > > actual number of stocks from 55 to 25, I believe.
> > > 3) Theoretically, we could have bought all 25. Finally, we go through
> the
> > > list by hand on a conference call and arbitrarily select between 10 and
> 15
> > > stocks that we buy on the next day's open. We haven't spent any time on
> > > this step yet, and through dumb luck have managed to do fairly well with
> > our
> > > portfolio.
> > >
> > > I have to give my brother for designing this approach. We will be
> > spending
> > > more time on step 3 as well as working on modifying the procedure for
> the
> > > short side. Right now my brother is a little nervous selling stocks
> > short.
> > > You would think that after trading futures both ways for 40 years, he
> > > wouldn't have that problem.
> > >
> > > Anyway, we went with 13 original stocks on Tuesday's open and added 4
> more
> > > this morning. Based on my preliminary calculations we are a little
> ahead
> > > with our own portfolio as opposed to buying all 25 stock, but not by
> much.
> > >
> > > We are in the process of going back and entering the OB/OS indicator in
> > this
> > > spreadsheet to do some more work on Step 2 and Step 3, above.
> > >
> > > By the way, purchasing even 100 shares of each of these 55 stocks
> stressed
> > > out each of our margin accounts, but we could have done it with a little
> > to
> > > spare.
> > >
> > > Guy
> > >
> > > Paranoia...you only have to be right once to make it all worthwhile!
> > >
> > >
> > >
> >
> >
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