Bruce,
I have to question that ranking of JDSU, QCOM and SEBL that you cited from IBD by way of the Fool.
You wrote:
SEBL's current Investor's Business Daily Rating can be found in Motley Fool's Stock Workshop Rankings. Rankings were updated at the close of trading on Friday.
SEBL Rates:
99th Percentile Earnings Per Share Growth
99th Percentile Relative Price Strength
A: Industry Group Relative Price Strength
A: Sales, Profit Margin, Return on Equity Growth
A: Stock Accumulation
SEBL has the third strongest IBD rating behind only JDSU and QCOM.
fool.com;
I went to that web site and this is the way they show the ranking:
Relative Strength-IBD
1 JDS Uniphase JDSU 99 99
1 Qualcomm Inc. QCOM 99 99
1 Siebel Systems SEBL 99 99
4 Harmonic Inc. HLIT 77 99
5 Titan Corp TTN 73 99
6 RealNetworks Inc. RNWK 65 99
7 CTS Corp. CTS 99 96
8 Sun Microsystems SUNW 96 96
9 Integrated Device IDTI 77 96
10 Gemstar Int'l GMST 62 96
A few points need to be made here. First when you say "SEBL has the third strongest IBD rating behind only JDSU and QCOM" it would seem that the chart is rating companies by the second column - the IBD Relative Strength(RS) (the first column is IBD EPS). JDSU, QCOM and SEBL all have 99s for RS as well as 99s for EPS, so they are in a tie and are listed alphabetically, not in merit order.
Next, this list must start with a finite, restricted list of stocks, not all stocks in the IBD universe. IBD provides its rankings for RS and EPS every day for every stock. The chart shows only 6 stocks with RS ratings of 99. By definition IBD 99 stocks represent 1% of the market. If we define the market as NYSE, AMEX and NASDAQ then there are approximately 8000 stocks and the top 1% represents 80 issues. If we restrict the list to only those stocks that are rated 99RS and 99 EPS, that would certainly limit the field, but not down to 3. A very quick scan of the newspaper revealed other 99 99 stocks including Veritas and Infosys.
Since I am not as familiar with The Fool as I am with IBD I may be missing something here. If so, please let me know.
StockHawk |
