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Technology Stocks : Semtech
SMTC 73.45+0.9%Dec 3 3:59 PM EST

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To: Todd D. Wiener who wrote (564)12/9/1997 4:54:00 AM
From: Jeff Bond  Read Replies (1) of 886
 
Todd,

Excellent!

I consider the willingness to share in detail your screening methods and criteria, then list a website where this can be done very generous. I appreciate what you provided, it is something I am going to chisel in stone.

For comparison, after 4 months of investing, I had developed the following list of criteria to use in the Investment Finder at Microsoft Investor's website.

1. Market Capitalization < $400M
2. Debt/equity ratio as low as possible
3. Price/sales ratio as low as possible
4. Past 1 year sales growth as high as possible
5. Past 5 year earnings growth as high as possible
6. Net profit margin as high as possible
7. Institutional ownership % less than 25%
8. ROE as high as possible

This is how I originally found SMTC as a potential investment opportunity.

The results did have some flaws, especially the debt/equity and market capitalization criteria which allowed a lot of tiny, debt-free companies to sneak into the list. Also, the ROE criteria also gave false readings for some companies with incredibly small amounts of equity.

I think this may mean one thing : Goodbye MS Investor :o)

Regards, JB
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