Investor's Business Daily Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Investor's Business Daily

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: -Mad-Jon who started this subject	12/10/2000 2:10:48 PM
From: - with a K	Read Replies (1) of 164

From the current "Ask Bill" feature on IBD's home page: Q: "I'm a new investor and subscriber to IBD. Would I be OK to just pick a stock with an EPS Rating of 99, a Relative Price Strength Rating of 99 and an 'A' in the other three ratings?" - Submitted from Greenfield, Ind. A: "The IBD SmartSelect Corporate Ratings result from decades of study into the greatest stock market winners. Each rating measures a different key aspect of proper stock selection. Rather than buying stocks that have the highest possible ratings (such as an EPS Rating of 99), you should use the ratings to help you screen out stocks. For example you could create a great research list by looking at all stocks with an EPS and RS of 80 or higher and B B B or higher. From there start looking for the stocks that are forming sound bases. Also disregard any stocks that are extended from their base. By this time you should have a relatively small list of quality stocks to choose from. By looking at their SmartSelect Ratings, you should be able to easily see the strengths and weaknesses of each stock. Then do your final in-depth research on each of these stocks. Once you have your final list don’t rush out and buy them; you need to wait for them to break out of a proper base on heavy volume. Remember, don't buy stocks that are extended more than 5% from their pivot point. And always protect yourself by selling stocks if they fall 8% from your purchase price." My questions: does anyone know of any independent evidence or study that corroborates the shameless claims by IBD for their rankings? The only claims I see about the success you can have are from IBD itself, or throughout Bill's books. While my instinct is that the ratings can be helpful as another data point - as he says above - I'd like to see some proof. Also, the ratings he offers through the (paid) web service are different from what is posted in the paper. Are these a better indicator of successful stocks? Anybody?

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next