As time has passed since first publishing my book, “Choose Stocks Wisely,” in late 2013, a recurring question comes up. In fact, I’ve noted it coming up more often very recently from new purchasers of my book. I’ll express the question this way; “the screen from your book is producing almost no (to none) stocks.” I decided to share today my response to one reader over recent days because it reflects best what my thoughts are on this matter. […]
Parts A and B of my Scorecard exist to determine the “quality” of the balance sheet. Parts C and D of the Scorecard use the balance sheet numbers to define a low price “if” quality has been assured in Parts A and B. Taken as a whole, the Scorecard recognizes that a low-risk situation is one where I buy into a healthy company when a share of company ownership is available at a bargain price. The absence of quality or a low price means I’m taking more risk.
As discussed in my book, I use the finviz website to screen for stocks, selecting filters in a manner that would turn up companies that could possibly meet both my quality and low-price standards. The standards are then implemented on a particular stock through the parts of my Scorecard.
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Since my book, “Choose Stocks Wisely: A Formula That Produced Amazing Returns,” was released in early October, I’ve received a number of e-mails from readers. Some of these e-mails have included questions about different issues and I’ve attempted to answer each question received. One person, Al, who wrote me recently, suggested that I share some of the questions and answers I receive. I thought it was a great suggestion and am doing just that through this post, and several posts which will follow in coming weeks.
Arthur and John observed that my Finviz screen provided in the book presently only reveals a few stocks which pass the screen and are left to evaluate using my Adjusted Floor Price Scorecard. Arthur was pondering relaxing some of my criteria in order to reveal more stock candidates. John wonders if we are in a period of excessive risk-taking in the market, thus leaving fewer and fewer low-priced stocks.
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