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These screenshots will start embarrassingly simple, and get more elaborate. So stay tuned…
First, lets find large companies!
Now, within that set of companies we want to find companies with decent valuation:
That’s nice, but we have some companies with really tiny PE values:
Let’s filter them out (using add term on the <, and dragging and dropping the terms):
This is nice, but where did I get those 3 and 12 from. Lets do something more molded to the stocks in question. Enter the rank-across operator:
We quickly learn that among large caps, that pe range is too strict: the 5th percentile is a PE of 9.47. The 20th percentile is a PE of 15.We can do multiple rankings:
Where did they all go? It turns out that the two overlapping ranks outlawed a lot of companies, since P/E and momentum work against each other. We can nest our rankings, and get more results.…
Show me the money
People look at net income, otherwise known as just earnings, as well as Free Cash Flow to decide whether they like a company. Why? Net income is the “real” income the firm makes, but it has one weakness: it doesn’t actually track money coming into (or out of) the firm.…
Tyler has worked with us for about 4 years: doing anything that needed doing. From testing (tedious but critical) to creating new strategies that manage risk and optimize returns, to writing articles (137 of them!), handling customer issues and more. He has also created much of the course work that students use to learn investing, including the Equities Lab 101 course on every account.…
Equities Lab
Learn how to benchmark your strategy versus various benchmarks, ranging from indexes, to stocks and other strategies.
Imagine you have a large cap screen
Cutting to the chase, imagine you have a simple screen that finds reasonable large cap companies. That screen is literally “import ohlson_o_score < -3 and mc > 10b”
Click on “® B 9”
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Click on “I Trading Rules”
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Click on “S&P 500”
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Add AAPL for a tough benchmark.
OK, what is a death cross, and what do I mean by “it doesn’t work”? A death cross is a (very) vivid name for a short term moving average slipping below a longer term moving average. Technical analysts love to sell when they see death crosses, and buy when they see golden crosses.…
Henry Crutcher
How to analyze a factor without ranking in Equities Lab
Create a screen
Everything starts with creating a screen. So, onward!
Name your screen
Screeners with names can be found later. If you want to put your screens into categories, simply put MyCoolCategory: at the front.
Limit your stocks
You can type “Market Cap > 500m” here.
This how-to shows how to create a strategy in Equities Lab, and how to do some basic analysis of it. For humor value, we take the point of view of a children’s book character, named Amelia Bedelia, who has no common sense. We have all felt this way sometimes.
Create A Screener
A quantitative mutual fund is a screener.
A lesson on absolute prices versus relative ones
You’ve been referred to this page by something saying “You can’t (or shouldn’t) use Close > 5.00” in a stock screener.
Imagine you are looking at a share of GoodStock (yeah, I know that’s a lame name for a fake stock!). It goes up and up, and up! …
Analyzing Apple
An Apple by itself
Is Apple a stock worth buying? Other people have discussed (at length) its “questionable” product decisions, such as:
- The touch bar
- getting rid of Touch Id in favor of using facial recognition
- Scrapping a whole ecosystem of connectors to push the “Lightning cable”
- Eliminating the headphone jack from the newest generation of phones.
We’ve all heard the old trope that “Cash is King.” Well, in terms of a company it just might be. As part of our Green Flag score we have created a line that requires that a company have a positive operating cash flow over the past four quarters.
If you are unfamiliar with what operating cash flow is, it is exactly what the name suggests – cash flow from operations.…