Mining the IBD 100, striking gold

[IIC]

Doug,
Your reply reminded me that I've been looking for a source that lists acceptable ranges for SMR ,ROE ,PE, etc. by industry. For instance I never could understand how IBD could compare banking industry earnings and ROE with such totally different sectors such as women's clothing or computer internet advertising. There must be published guidelines but I haven't been able to find any. Thanks for any information.

billyjoe

I've thought about that for many years...But I never found any...Doug

[peanuts]

Day 15, Week 4

IBD Gold Mine (IBDGM) +2.37% $5,640.46

ASVI +0.45
ERS +1.37
NWRE +0.36
SNDK +0.36
WDC +0.23
WSO +1.15

[peanuts]

Day 16, Week 4

IBD Gold Mine (IBDGM) +1.22% $5,709.18

ASVI +0.16
ERS +0.53
NWRE +0.11
SNDK 0.00
WDC +0.56
WSO +0.63

[peanuts]

Day 17, Week 4

IBD Gold Mine (IBDGM) +2.69% $5,862.765

ASVI -0.06
ERS +0.69
NWRE +0.74
SNDK +3.11
WDC +0.58
WSO +0.91

[peanuts]

Day 18, Week 4

IBD Gold Mine (IBDGM) -1.51% $5,774.15

ASVI +0.38
ERS -0.60
NWRE -0.49
SNDK -1.63
WDC -0.71
WSO +0.52

[peanuts]

Day 19, Week 4, end of week results

IBD Gold Mine (IBDGM) +0.80% $5,820.50

ASVI +0.29
ERS +1.05
NWRE -0.17
SNDK +0.01
WDC -0.04
WSO -0.66

WEEK 4 RESULTS:

Total portfolio value gain / (loss) to date: ($179.4
Total portfolio percentage gain / (loss) to date: (2.99 %)
Largest individual return to date: ERS, 8.65 %
Lowest individual return to date: WDC, (19.69 %)

[peanuts]

But I will admit that I use some of their info/data...But it just isn't gospel.

I agree, Doug. It certainly is not gospel. I like the way you analyze each stock. Regarding the top performing industries... do you think I should look at the best performer in the worst industry group? I think that is like fighting the tide. My personal choice of stocks would eliminate the worst performing industries. I thought that eliminating the bottom 85-90 % of the total 197 industry groups would give me the stocks which are part of the tide.

This is taken from Chapter 12 of "How To Make Money in Stocks" by W. J. O'Neil:

"As an individual investor, you too need to study and benefit from stock charts. It's not enough to buy a stock simply because it has good fundamental characteristics, like strong earnings and sales. In fact, no IBD reader should ever buy a stock based soley on IBD's proprietary Smart Select ratings or the yellow-highlighted (top fundamentals) small or mid-cap stocks shown in IBD's stock tables. A stock's chart must always be checked to determine if the stock is in a proper position to buy, or if it is a sound, leading stock but too far extended in price above a sound basing area and should be avoided."

I'm sure that quote will stir up a bit of commotion here.

[IIC]

I agree, Doug. It certainly is not gospel. I like the way you analyze each stock. Regarding the top performing industries... do you think I should look at the best performer in the worst industry group? I think that is like fighting the tide. My personal choice of stocks would eliminate the worst performing industries. I thought that eliminating the bottom 85-90 % of the total 197 industry groups would give me the stocks which are part of the tide.

This is taken from Chapter 12 of "How To Make Money in Stocks" by W. J. O'Neil:

"As an individual investor, you too need to study and benefit from stock charts. It's not enough to buy a stock simply because it has good fundamental characteristics, like strong earnings and sales. In fact, no IBD reader should ever buy a stock based soley on IBD's proprietary Smart Select ratings or the yellow-highlighted (top fundamentals) small or mid-cap stocks shown in IBD's stock tables. A stock's chart must always be checked to determine if the stock is in a proper position to buy, or if it is a sound, leading stock but too far extended in price above a sound basing area and should be avoided."

I'm sure that quote will stir up a bit of commotion here.

No...I'm not saying to pick the best performer in the worst groups...I'm saying to look for groups that are moving up. The tide can be changing long before a group hits the top 20. By checking these groups for the best looking stocks you may find some gems before they are plastered all over the paper. Takes a little work but an hour on the weekend could be worthwhile.

Also, I fully agree with WON's statement you posted. Take a look at my IIC 100...I get some flack about the list but I'm not saying that all 100 are any good for a current buy or even a current watch...They just meet some basic criteria I set up. In fact, I quickly go thru each chart and pick some for further dd. Yesterday I narrowed it down to 21. Today I will look further into those 21 and put some on my "A" watch list. Chances are that I will end up watching about 10 of them.

I used to run a scan that I called "Undiscovered Gems" They were stocks that had very good current earnings increases and very good projections. They also were in the bottom 10% of my relative strength database of 5500 stocks. Some will comeback...but I didn't really get a whole lot of good ideas from the list. However, that's where I found my Pick of the Year IDWK at the end of December. At that time it had an RS rating of 10 in my database...Now it is 36. IBD's RS rating says 38 now(Mine is usually within a couple of points of their's) If you notice the eps % increases were excellent at the time...But Octber's eps which missed was not yet announced (announced in January). I actually bot some before eps with a plan to add...But I got whacked when they missed and I lost 9.5%....I thought about selling just before the close when they were gonna announce...could have easily got out for +7%...Oh well.

Best...Doug(IIC)

[peanuts]

this week's scan results:

ERS
BOOM
GG
JOSB

P/E not considered

[IIC]

Peanuts...Only 6 stox...But check out the Retail Discount and Variety Group...Doug

[peanuts]

day 20, week 5

IBD Gold Mine (IBDGM) +3.78% $5,992.40

ASVI +0.06
ERS +2.21
NWRE -1.5
SNDK -1.19
WDC +0.32
WSO +0.35

[peanuts]

day 21, week 5

IBD Gold Mine (IBDGM) -0.81% $5,943.91

ASVI -0.59
ERS -0.46
NWRE +0.61
SNDK +1.08
WDC -0.75
WSO -1.29

[peanuts]

day 22, week 5

IBD Gold Mine (IBDGM) +0.88% $5,996.13

ASVI +1.04
ERS -0.25
NWRE +0.06
SNDK +1.00
WDC +0.12
WSO +0.57

[peanuts]

day 23, week 5

IBD Gold Mine (IBDGM) +0.78% $6,042.90

ASVI -0.44
ERS +1.16
NWRE -0.47
SNDK +0.17
WDC -0.24
WSO +1.82

[peanuts]

day 24, week 5, end of week results

IBD Gold Mine (IBDGM) +2.18% $6,174.91

ASVI +0.76
ERS +1.59
NWRE -0.03
SNDK +1.94
WDC +0.32
WSO -1.27

WEEK 5 RESULTS:

Total portfolio value gain / (loss) to date: $174.92
Total portfolio percentage gain / (loss) to date: 2.92 %
Largest individual return to date: ERS, 30.38 %
Lowest individual return to date: WDC, (20.64 %)



Finally, 5 weeks and it's coming out of the red. Could this also indicate an overall market trend?