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Strategies & Market Trends : Shorting stocks: Broken stocks - Analysis

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To: Q. who wrote (2447)10/27/1999 3:46:00 PM
From: Q.  Read Replies (1) of 2506
 
It's time for tax-loss selling screens.

This year I'm using the free screening tool at moneycentral.com:
moneycentral.msn.com

For my first screen, I used the following parameters:

absolute criteria:
stock price > 3
YTD stock price change < -40%
market cap < $100 M
institutional ownership < 40%
price/cashflow < 0
price/book > 2
price/sales > 1

relative criteria:
12-month RS: low as possible
6-month RS: low as possible

The resulting stocks are shown in the following link, ranked with the lowest RS appearing first:

finance.yahoo.com

One note of caution:

What we want for tax-loss sellers is a very high % of ownership by individuals, and I can't screen on this. Alternatively, one could minimize both the % insider ownership and the %institutional ownership, but moneycentral.com only provides the latter as a screening parameter. So it will be necessary to go through the list looking for these details manually, and I haven't done that, at least not yet.
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