Rankings
StockCiphering.com assigns three different rankings to each of the stocks in the
database. Each stock is evaluated and compared against all the other stocks in the
database and assigned a percentile ranking ranging from 1 to 99, with 99 being the best.
Special Note: Based on requests from subscribers and non-subscribers alike, stocks
between $2 and $6 were introduced into the StockCiphering.com database in 2004.
Great pains were taken to introduce these "Low Bucker" stocks in such a way as
to NOT abruptly change the site for people who liked things the way they were.
Very often these stocks have extremely powerful advances in price, and they
therefore have the possibility of significantly overshadowing the higher-priced stocks
in the database. Therefore, two passes are done on the data in calculating the rankings.
The first pass ranks ALL stocks (regardless of price), and then a second pass is
done which DOES NOT INCLUDE these "Low Bucker" stocks. This way, a subscriber
who doesn't want to fool around with the "Low Buckers" can still find
high-performance stocks in the Over $6 universe.
The Week Performance Ranking is evaluated based on both price performance
during the week, but volume is also taken into account along with price. For example,
two stocks may advance the same percentage amount during the week, but if one has heavier
volume on its up days than the other, then it will achieve a higher ranking. You can
see an example of this below in the performance of MIMS and MEDX during the week
ending Sep28,2001.
MIM Corporation
From Sep21,2001 to Sep28,2001
the price rose from $9.37 to $10.50
an advance of 12.1%
But note the heavy volume on the
down days of Sep25 and Sep26
indicating selling
Its Performance Rank for the Week was 14
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Medarex Inc
From Sep21,2001 to Sep28,2001
the price rose from $13.47 to $15.10
an advance of 12.1%
But it had heavy volume on the
up days of Sep27 and Sep28
indicating buying power
Its Performance Rank for the Week was 91
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In addition to price and volume, StockCiphering.com also implements a little
Japanese Candlestick Theory in analyzing the daily open,
low, high, and closing prices in order to evaluate the overall daily movement
of a stock (for a more in-depth discussion on Candlestick Theory, please read
StockCharts.com's Introduction to Candlesticks).
A simple example can be seen below in comparing the performance of PDII and
SANG on Sep24,2001. In this case, even though both stocks advanced roughly 7.5%,
SANG gets a higher ranking because it advanced as a long white candle (in addition
to having above-average volume on the advance).
Professional Detailing
On Sep24,2001
the price rose 7.48%
But note that it opened near its high
and closed near its low
indicating that bears were in control
Its Performance Rank for that day was 63
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SangStat Medical
On Sep24,2001
the price rose 7.56%
Note that it opened near its low
and closed near its high
indicating that bulls were in control
Its Performance Rank for that day was 86
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The 1-Year Performance Ranking ranks stocks on a price-only
performance over the last year; however, it also gives some weight to
the price-and-volume performance over the past 3 months, using the same
strategy described above.
Stocks that break out to new highs and continue on to big advances typically do so
after they've already had a big run-up during the previous year or so.
So stocks with a 1-Year Performance Ranking of 70 or 80 or above are the
ones that will most likely be your best candidates.
Finally, there is a third ranking assigned by StockCiphering.com called the
Overall Ranking. It is a proprietary combination of several factors,
with each one carrying a different weight (though most of the weight is from the
growth prospects):
- The stock's future short-term and long-term growth prospects (if known)
- The %increase in the number of institutions that own the stock in the last 3 months
- The 1-Year Performance Ranking
- The distance a stock's price is from its 52-week high
- The behavior of a stock's MACD and Directional Movement
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