|
|
|
Undiscovered Growth
As you may have read in the Why Use StockCiphering.com? section,
we focus primarily on smaller companies with a relatively small number of
shares outstanding.
But we have added one additional feature to help you hone in on those companies
that have great future growth prospects and yet are relatively undiscovered in
terms of dollar volume and institutional support. Once institutions and retail
investors sit up and take notice of these companies, they often take off. We
call these stocks Undiscovered Growth stocks.
In order to be categorized as an Undiscovered Growth stock, a stock must meet all
of the following criteria:
- The stock must be categorized as a Positive Growth stock.
- The last 12 months of sales is no more than $500 million. This ensures that the
the company is still relatively small.
- The average daily dollar volume (i.e. price multiplied by average volume) is
between $1 million and $25 million. This is to make sure that the company is still
undiscovered in terms of dollar volume, yet is still fairly liquid (thus the $1 million minimum).
- There are no more than 150 institutions in the stock. Again, this is to
make sure the stock is still relatively undiscovered.
- The current quarter's growth estimate percentage (if known) is projected to be at least 15%.
This element and the next 4 elements are rigorous filters on growth prospects.
- The next quarter's growth estimate percentage (if known) is projected to be at least 15%
(and, already being a Positive Growth stock, the EPS estimate for next quarter
may not be a negative number).
- The current year's growth estimate percentage (if known) is projected to be at least 15%.
- The next year's growth estimate percentage (if known) is projected to be at least 15%
(and, already being a Positive Growth stock, the EPS estimate for next year
may not be a negative number).
- The average long-term (5-year) growth estimate percentage (if known) is projected to be at
least 15%/year.
Only about 14% of the companies in our database meet all the above criteria. Those stocks
are shown in all of our stock screens in boldface (since they are already
Positive Growth stocks) with a green background so
that you can focus on just those companies if you wish.
|
|
