John: Yeah, those have done well, but I don't own any. You REALLY want to hear it again?
Generally, I think final selection is the most important PB criteria and it's not realy defined by Ford, but here's how I try to use the PB:
1. I avoid the NYSE and the AMEX because I need the "C" and "A" number listed in IBD for the NAS only.
2. I try to find the CANSLIM types just barely breaking out of classic bases on above average volume.
3. I don't automatically market order buy a stock on Monday or the day after I spot it unless it really looks exceptional. If it doesn't look exceptional, I'll track it for weeks to get the precise entry point which will allow a low risk technical stop loss order.
4. I ignore minimal PB criteria glitches, especially the 2:1 52 week hi/lo ratio. If it misses by a 1/2 point, it still is a qualifier. In this market, it could miss by a few points because the good ones are hard to find as this market ages.
5. I avoid the big, lumbering giants like ALB, etc. unless it is a more typical "growth" stock like SUNW (what a great trade BTW).
6. Contrary to CANSLIM discipline, I try to find a stock with a huge annual growth rate to PE ratio like ORBKF (almost a PB triple since it first qualified) and MIND (a PB double).
7. I follow the "M" in CANSLIM with the help of a site (STOCK FARMER) which I posted here not long ago.
8. I ignore Merit Ranking stocks unless the market stinks. I think it produces a collection of "laggards" if it is used beyond a clear short to intermediate term upside move like we had back in April.
Now, if I could only follow my own system, maybe I'd be able to retire. Oh well.
Hope that's what you're after.
Jeffry |
