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Strategies & Market Trends : Gorilla and King Portfolio Candidates -- Ignore unavailable to you. Want to Upgrade?

To: StockHawk who wrote (11311)	11/28/1999 3:17:00 PM
From: Bruce Brown	Respond to of 54805

StockHawk, You are absolutely right. JDSU, QCOM and SEBL were all tied for the top three spots or in a virtual tie. I didn't bother to explain the screens used at the Fool workshop due to time factors, but the below points out the three screens that Siebel appeared on at the close on Friday. Actually it was on four screens as it tied for 4th place on the beta screen as well. The screens are used by a lot of Mechanical Investors and Technical Analysis Investors. I don't follow all of that except I do check the workshop on almost a daily basis to see what is appearing and if any of my holdings are included. There are 10 screens in total. When I combine Foolish Five criteria, screening attributes at the workshop, Icarus Scoring and gorilla game tactics - I can usually zero in on when a good time to buy more shares of my favorite stocks presents itself. I guess I presented the Siebel rankings today because of the comment that very few on the thread were shareholders in the dominant CRM player. Being that it is one of my favorites, I was simply trying to make a case that in the workshop screens - it is faring well. I'm not encouraging anyone to run out and diversify, but simply pointing out the relative strength that a member of the G&K index has. Here are the three screens that I said Siebel had appeared on in my earlier post and the explanations of all three: Unemotional Growth: Starting with all of the stocks ranked Timeliness 1 by the Value Line Investment Survey, select the ten (or five) with the highest EPS (earnings per share) score in Investor's Business Daily. Ties for 5th or 10th place are broken using the RS (relative strength) score, also from Investor's Business Daily. (If you use a simultaneous dual sort, first sort by EPS descending, then by RS descending.) This model has not been tested using an annual holding period. A strategy that adjusted the portfolio monthly, however, returned 39% a year for a five-stock portfolio from 1987 through 1996. A ten-stock version has returned 30% a year on that same monthly cycle. Relative Strength -- IBD: Starting with all of the stocks ranked Timeliness 1 by the Value Line Investment Survey, select the ten (or five) with the highest RS (relative strength) percentile score in Investor's Business Daily. Ties for 5th or 10th place are broken using the EPS (earnings per share) score. (If you use a simultaneous dual sort, first sort by RS descending, then by EPS descending.). Formula 90: Starting with all of the stocks ranked Timeliness 1 by the Value Line Investment Survey, select only the stocks that have an EPS (earnings per share) score in Investor's Business Daily of at least 90, then sort only those stocks by RS (relative strength) score from Investor's Business Daily. For the portfolio, select the ten (or five) stocks with the highest RS. Ties for 5th or 10th place are broken using the EPS score. (If you use a simultaneous dual sort, first sort by RS descending, then by EPS descending -- after selecting the stocks with EPS above 90.) Using an annual renewal strategy, the ten-stock variation of this model has returned 34% a year while the five-stock version has returned 33% per year since 1987. These impressive returns have been accompanied by very high inter-year volatility, however. BB