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Strategies & Market Trends : VOLTAIRE'S PORCH-MODERATED -- Ignore unavailable to you. Want to Upgrade?

To: freeus who wrote (1994)	9/18/2000 10:48:49 AM
From: StockHawk	Read Replies (1) \| Respond to of 65232

re:IBD's ranking of most-bought stocks by mutual funds >> The limit is RS and EPS 80 or above. << Not on the recent list. The above is the cut-off criteria, but the list is ranked by highest combined score (198) until they fill their chart. The lowest ranked company this time had both ratings in the low 90's. This criteria likely eliminates 95% of companies right from the start. That seriously impairs the usefulness of the information, imho. Many mutual fund managers use strategies such as buying stocks that rise above a long term average. Most stocks breaking above such an average may not show a relative strength of 80 or 90, and so they can never make the list. If someone wishes to make the decision that they will only invest in stocks with the highest IBD rankings, then the listing is useful. That might be a fine investment criteria, and a good way to whittle down the stock universe into a manageable lot. It is perhaps similar to someone who decides to only consider gorilla companies or companies with 200% yoy revenue growth. However, IBD's own statistics often show that the best performing stocks had ranks in the 70's or 80's before making their major moves. These companies are excluded from the list we are discussing. Sorry to go on about this, but with the daily parade of "best company lists" it is important to understand the selection criteria, and I'm sure not everyone who reads this thread is familiar with IBD's methodology. StockHawk