Publisher's Synopsis
Enter the fundamental metric information such as P/E for any 100 stocks into a scoring system. If the top 25% of the stocks perform a lot better than the rest in 6 months consistently, then it is a good scoring system.I have been using my own scoring system for years. It sums up the individual scores for selected fundamental metrics. When the total score passes a set number, I evaluate the stocks further for potential purchase. This scoring system has been updated many times for refinements and adapting to the changing market conditions. All basic metric information can be obtained from free web sites.Many companies and academic projects must have worked on this kind of stock scoring systems. However, few if any can prove their systems work consistently.I may have found the reason why it does not work consistently. The fundamental metrics change when market conditions change. To illustrate, the current market conditions may favor value stocks while some other conditions favor growth stocks. I monitor the performances of all the fundamental metrics periodically and make changes accordingly. Hence, I call my scoring system Adaptive Stock Scoring System (do not use the acronym).Adaptive Stock Scoring System is a sample scoring system. Don't be fooled by how it is so simple to use. It is backed up by years of data from real-life trades and refinements. The recent tweaking adapts the system to current market conditions. The data can be obtained from many sources. The rest of the book contains background information. In writing this book, I switched from IBM to Apple as the sole example in this book as IBM scored very low. Apple scored very high. This book was published in 06/2013. The performances of the two stocks from 06/03/2013 to 06/03/2014: IBM -14% and Apple 41% (vs. SPY's 17%).Last Update: 01/2021. Size: 215 pages (6*9).
