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Jim,
I use TIP searches all the time. I only keep a small database of stocks
in MetaStock and add to it as a result of Telescan searches. I'll copy some
posts below that describe my strategy and my searches. I've updated the
searches since that post, but am sending it since it explains my search
criteria. Yell if you want the modified searches. I just use the results to
identify stocks I'm interested in and haven't tracked the results on all
stocks identified since the TIP search is only the first step in my investment
methodology.
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I have a couple of Telescan prosearches I use to identify new stocks for
my database. I run those searches weekly and look at the Telescan charts. If
you have Telescan and would like to have my prosearches, just yell. If I like
the charts, I then download the historical data to my MetaStock database.
When I get the stock in my MetaStock database, I use a default template to set
up a CandleVolume chart of the stock with a small volume window under it and
three indicator windows over it. The indicators are RSquared, LinRegSlope,
and MFI. I then run the five MetaStock system tests in the compare mode, to
find which one works best with that stock. If the mfi test does best, I don't
change anything. If CMO, QStick or CCI does better, I change the MFI
indicator to the one that does best. If ROC does best, I change the RSquared
and MFI indicators to ADXR and ROC. That way I can tell which test does best
by just looking at the chart. About once a month I look at all the stocks in
my database and prune those that I'm no longer interested in.
I update the stocks in my database daily using the Downloader. The
stocks in my database are in different subdirectories for LEAP Stocks,
Stocks, LEAP Watch, Stock Watch, and portfolio lists. I run my MetaStock
Exploration which is a normalized version of the system tests weekly. For the
stocks identified by the Exploration, I look at the chart and run the
appropriate system test. If the stock looks like it may be a near term buy,
I'll move it to the appropriate watch list. I look at all the charts in my
watch list daily. Once they move out of a buying range, I move them back to
the appropriate stock or LEAP directory. Whenever, I have buying power in one
of my portfolios, I make my selection from one of the watch lists.
That's a short summary of my investment strategy. Yell if you have any
questions.
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Search Criteria (1_PULBCK)-----------------STOCK PRICE 5.0-9998.0 a
PRICE/SALES RATIO 0.0-1.5 a Low 100% EARNINGS GROWTH 1-YR
70.0-99.0 r High 100%
P/E RATIO 0.0-13.0 a Low 100%
% HIGH VALUE 52-WK 20.0-80.0 a
DEBT/EQUITY RATIO 0.0-50.0 a
ANALYST RANK High 100% FUNDAMENTAL RANK High 100%
RELATIVE P/E RATIO Low 100%
INSIDER RANK High 100%
MOMENTUM RANK List Only
SHORT TERM TECH RANK List Only
ERG List Only
3/30-DY VOL RATIO List Only
MOVING AVG 200-DY List Only
#ANALYSTS - NXT FY List Only
MARKET CAPITALIZATION List Only
INSIDER TRADING List Only
STOCK EXCHANGE List Only
NEXT 1 YEAR % GAIN High 100%
REL PERFORMANC 1-WK High 100%
REL PERFORMANC 2-WK High 100%
REL PERFORMANC 3-WK High 80%
Let me explain the above Telescan Prosearch a little. Its designed to
find fundamentally strong stocks with good earnings and sales growth that have
suffered a 20 to 80% pullback in the last year. First of all, I only search
the Telescan database of optionable stocks. The first term limits us to
stocks with prices between $5 and $9998. The second term limits us to stocks
with price to sales ratios (PSRS) of under 1.5 and gives greater weight to
lower PSRs. The next term limits us to stocks that, on a relative basis, are
in the top 30% for annual earnings growth and gives more weight to the fastest
growers. The next term limits us to stocks with a PE less than 13 and gives
more weight to lower PEs. The next term says that the stock has to be between
20% and 80% of its 52 week high. That is the term that guarantees that we
have had a pullback. The next term says that the debt to equity ratio has to
be between 0 to 50%. The PE, PSR and Debt/Equity terms are the ones that
assure us of sound fundamentals. We rule out high flyers without any sales or
earnings and look for good values by limiting P/E. The rest of the terms are
either list only that show values but dont influence results or relative
values that can only affect how the results are sorted. The guts of the
search are in the terms I just explained.
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Search Criteria (2_JIMSFG)-----------------STOCK PRICE 3.0-9998.0 a Low 100%
PRICE/SALES RATIO 0.0-1.3 a Low 100% EARNINGS GROWTH 1-YR
70.0-99.0 r High 100% SALES GROWTH 1-YR 75.0-99.0 r High 100%
RETURN ON EQUITY 80.0-99.0 r High 100%
EPS POS SURPRISE LAST 4 3.0-4.0 a
DEBT/EQUITY RATIO List Only
P/E RATIO Low 100%
CO/IND GROWTH RATIO High 100%
MARKET CAPITALIZATION Low 100%
FUNDAMENTAL RANK List Only
RELATIVE P/E RATIO List Only
REL PERFORMANC 6-WK High 100%
CASH FLOW GRWTH 1-YR List Only
COMPANY GROWTH RATIO High 100%
INSIDER TRADING List Only
ERG List Only
% INSTITUTIONAL HOLD List Only
Ill quickly explain this test. Again I only search on optionable stocks.
The stock price, PSR, and earnings growth terms serve the same function they
did in the last test. Note that I dont have a term here that limits us to
between 20 to 80% of the 52 week high since Im not looking for pullbacks.
Im looking for fast growers with sound fundamentals. The PSR and PE terms
give me the fundamentals. The next term adds a sales growth requirement
limiting us to stocks in the top 25% on a relative basis and giving more
weight to higher growth. The next term limits us to the top 20% in Return on
Equity on a relative basis and gives more weight to higher returns. The final
criteria is interesting. It is a earnings surprise criteria that says at
least three out of the last four earnings statements must have been above
analysts estimates or upside surprises. The remaining terms are either list or
relative statements like in the first test.
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Hope that helped.
Jim
-----Original Message-----
From: Wooglinx@xxxxxxx
Sent: Friday, June 13, 1997 8:07 AM
To: metastock-list@xxxxxxxxxxxxx
Subject: Telescan's Investment Platform
Has anyone had any experience using Telescan's Investment Platform (TIP) as a
meaniful search engine to uncover good stocks? And, if so, did the stocks
uncovered subsequently show good price appreciation? Thanks for your input.
Jim Barone
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