Silicon Investor (SI) -- The First Internet Community

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 : Shorting stocks: Broken stocks - Analysis -- Ignore unavailable to you. Want to Upgrade?

To: chester lee who wrote (1702)	8/26/1998 10:06:00 AM
From: Q.	Read Replies (1) \| Respond to of 2506

Here's a mechanical screen for broken stocks that I call the low- RS/neg-cash flow screen. A year or two ago in AOL/TMF's shorting stocks folder I posted monthly updates on this screen. For many months it worked quite well, but then during a couple of months when small stocks soared this screen got killed with big losses, so I quit following it then. Just for the heck of it, I backtested it again in June and again today. The results in this small-cap bear market are tremendous. For example, 6/4 to 8/26/98, the average of the 25 stocks selected that day dropped by 33%, compared to 14% for the Russell 2000. The screen takes the 25 stocks with the lowest 18-week relative strength that meet the following requirements: price > $5 $20 M < market cap < $200 M cash per share < 10% of stock price p/b > 3 PSR > 2 30-day volume > 5 k / day FWIW, Here are the stocks from the current list, starting with the lowest RS: MARG 5.812 AND 6.875 POSS 6.875 DAQU 10.25 TAVA 6 SIEB 7 PLC 7.5 HOFF 7.375 BTIM 6.812 PILL 8.375 MOFN ALYD HMPS WEBB CYPH FNDTF ENER FXEN THNK VINF APOS TSCN AKRN USL SNDCF Of these stocks, the only ones with significant short interest ratios are POSS, PLC, PILL, BTIM, and FXEN