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Strategies & Market Trends : Greenblatt's Little Book That Beats The Market -- Ignore unavailable to you. Want to Upgrade?


To: pcyhuang who wrote (113)9/23/2006 8:22:08 AM
From: Shane M  Respond to of 218
 
It's been a while since I read. I don't know if going deep into microcap territory drove better results and I don't think the author broke things out that way. (I think he broke things out into "large caps only" and "everything" - although I could wrong - and as a previous poster said the more inclusive list performed better). Maybe restricting to stocks with mktcap $300-$500mill and up would be a deep enough dip.

I'd think you need to be careful when dealing with any stock at the extreme ends of these ranking measures, but especially very small cap stocks. It's been a while since I ran the ranking figures, but unusual situations/one time events can dominate some of the rankings and need to be sorted through.

All IMHO



To: pcyhuang who wrote (113)9/25/2006 10:39:46 PM
From: Stewart Whitman  Respond to of 218
 
My observation has been that once you drop below about 200M, the balance sheet & income statement data tends to get a lot less reliable. E.g.: one time items get reported with regular income. If you're the target of this book, looking for a quick, quantitative, method of investing, without doing much individual company research then it's best to aim a little higher.

Regards,
Stew