August 10, 2017

Guys, you’re being too selective with your screener

It isn’t uncommon for one of our users to call us up and ask for help. To be honest, there have even been times when I will help a client at their site to get them up and running. In the past two years of working in this industry, I have noticed one major theme among every person(myself included) when it comes to screening for potential investments – we are all far too selective.

What do I mean by that?

Well, when we go in to start building a screen we all have the idea of the “perfect” company. This shrunken world view is just our individual preferences, but it can minimize our potential to make good investments.…

July 4, 2017

How Effective are Red Flags in Investing

Just how telling are red flags?

The term “red flags” is synonymous with “bad things are going to happen,” and, for investors, they are a sign that you should likely stay away from that investment. However, all this talk of red flags being able to predict that a company is going to do poorly makes you wonder, does it work?

To start, let’s take the red flag score from the “Synopsis with Red Flags” tear sheet which contains 13 different comprehensive red flags. I apologize for the size of the following photo.

Without getting into too much detail, in the event you can’t read the photo clearly, the score looks for the following thirteen items –

  • Bad Accruals
  • Current Accrued Expenses are increasing faster than expenses
  • Two bad days in a row with a 4.5% drop in share price each day
  • Close has decreased over the past 20 days
  • The company has a low Cash Flow score
  • The company has a low Piotroski F-Score
  • Outperformance while EPS 1Y is decreasing
  • Average market cap is in the top ten companies
  • RawClose is less than $2/share.
April 25, 2017

Stock Analysis – Creating a Tear Sheet

Creating a Tear Sheet from Start to Finish

A little over a year ago we released an article that outlined the process that one has to go through to create a tear sheet within the Equities Lab system. Upon looking back on it, I realized that the article didn’t really make the process seem very user friendly, so I’m going to go ahead and illustrate how to build a tear sheet step by step.

  1. Create a new formula
    1. Go into the editor and create a new formula. Name it whatever you like – in our case we are building momentum with red and green flags.
January 30, 2017

Market Momentum

   Unless you’re living under a rock, you’ve probably heard the news about Dow 20K.  You might be asking why Dow 20K matters and what it even means. Well, Dow 20K is a major milestone for the Dow Jones Industrial Average. The Dow Jones Industrial Average has been around since May 26, 1896, and is an index of 30 large publically traded companies based in the United States to give investors a general idea of how those stocks were traded on a day to day basis. The Dow is built up of notable companies such as Apple, Goldman Sachs, Boeing, IBM, Nike, The Home Depot, Coca-Cola, etc.…

January 26, 2017

Which Stocks you Should Stay Away From

Figuring out Which Stocks to Stay Away From

With the recent integration with TradeKing finished, it’s time to actually use our free Equities Lab membership to actually analyze our holdings.

As you can see, here are my holdings as of writing this article. Now, a lot of these positions were taken on (randomly!) during our testing phase where we were more worried about the actual functionality of the software than how well our positions were going to perform. So I think it’s time we dive in and adjust our positions (dartboard?) to reflect our personal trading philosophy here at Equities Lab.…
December 23, 2016

“Cut the Cord Movement” Affecting Cable Companies?

Is the Cut the Cord Movement affecting big Cable Companies?

The Cut the Cord movement has come about with the advent of the internet. As people are finding new means of entertainment, and new mediums to get the entertainment they received through cable, they have begun to cancel their expensive cable subscriptions. In 2000 there were a total of 68.5 million active cable subscriptions. However, by 2013 that number dropped to 54.4 million. That resulted in, assuming that the average cable subscription costs $50/month, a $8.46 billion dollar loss for the cable industry. So how does this massive loss affect the companies providing these cable services?…

December 1, 2015

Tutorial: How to Create a Tear Sheet

Tear sheets are one of the most important and useful features within Equities Lab. However, a lot of people don’t know that you can actually customize and create your very own tear sheets – just like virtually everything else in the Equities Lab software. When we were building this, our mind was always on the end user, and offering you the most versatile and customizable investment software possible. Now, I know that we have a few readers here that don’t know what a tear sheet is, so we are going to start off with that.

What is a tear sheet? Well a tear sheet, at its core, is basically a table with different pieces of information in it.…