RDRutherford

May 1, 2008

qmaxx

Filed under: Uncategorized — Tags: — rdrutherford @ 5:42 pm

Welcome to QMAXX, Sabrient’s investor-friendly stock ranking system.

QMAXX uses your answers to the questions below to find stocks from our pre-ranked database that best fit your preferences.
Click the arrows to show/hide relevant tips
1. Buy/Hold/Sell Ratings

Tip

Out of 5600 stocks covered, Sabrient currently rates about 1500 as Buys, about 3700 as Holds, and about 400 as Sells. Sabrient’s Buy-rated stocks, as a group, have consistently outperformed the average performance of all stocks.

Would you like to restrict your search to stocks with Sabrient “Buy” ratings?
Allow Buy-rated stocks only
Allow Buy- and Hold-rated stocks
2. Market Cap

Tip

Sabrient’s statistics have performed well historically in all market caps, but they have had exceptional performance in small-caps and mid-caps.

Would you like to limit this search to a specific market cap segment or segments?

Large-Cap: (Greater than $5 billion)
Mid-Cap: ($1 – $5 billion)
Small-Cap: ($150 million – $1 billion)
Micro-Cap: (Less than $150 million)
3. Investing Styles

Tip

Many investors make use of the concept of “styles,” which reflect broad characteristics of stocks. Value, Growth, Momentum, Income, and Technical are examples of major styles. Sabrient’s methodology creates scores that measure the desirability of variables usually focused upon by these investor styles. Therefore, if you prefer the value style, for example, selecting “5” will make your results tend to have traits preferred by value investors.

If you have no preference about styles, leave the question at the defaults or set the importance level to zero (both have the same effect).

What type of stocks would you like to look for? To favor stocks of a particular investing style, select higher numbers for those styles below.

Don’t care 1 2 3 4 5
Value
Growth
Momentum
Income
Technical

Importance:
5
4. Stock Attributes

Tip

Besides style, investors are often interested in other broad traits of stocks, such as, quality of earnings, balance sheet, stock fundamentals, group strength, short-term and long-term technical strength. By ranking the relative importance of these items, you help the search turn up exactly what you are looking for.

If you have no preference about these attributes, leave the question at the defaults or set the importance level to zero (both have the same effect).

What particular stock attributes would you like to look for? To favor stocks with particular attributes, select higher numbers for those attributes below.

Don’t care 1 2 3 4 5
Quality of Earnings
Strong Balance Sheet
Strong Fundamentals
Group Strength
Short-Term Technical Strength
Long-Term Technical Strength

Importance:
5
5. Recent Revisions in Analysts’ Estimates

Tip

Generally, when an analyst raises or lower an EPS estimate, it implies a substantive change in company prospects and therefore stock price potential. Such revisions can fuel price moves in a stock as investors adjust their holdings to reflect changing expectations. This can mean increased demand and increased stock price if EPS estimates are revised higher, while lowered revisions can bring selling pressure and price drops.

Testing reveals that a one-month change in estimates is an accurate predictor of positive or negative moves in stock price.

Sometimes interesting stocks may be found by watching for upward revisions in analysts’ projections. Move the slider to the right to indicate increased preference for these stocks.
Importance:
0
6. Insider Buying Activity

Tip

Particular types of insider buying transactions are positively correlated with stock price. If insiders buy their company’s stock on the open market (as opposed to exercising stock options), it is a strong indication that they believe the company’s future earnings are going to be better than the market expects.

Other interesting stocks may sometimes be found by watching for increased insider buying. Move the slider to the right to indicate increased preference for these stocks.
Importance:
0
7. Risk / Reward

Tip

By answering Question 7, you let QMAXX know if you want to err on the side of lower risk and lower return, or higher risk and higher return.

Here’s why. Popular market theory indicates that in equilibrium, higher returns will be paid on investments bearing higher levels of economy-wide risk. Bearing diversifiable risk on the other hand, such as risk from overexposure to one geographic region or one company, is not rewarded in theory.

Therefore, a theoretical trade-off between bearing systematic risks and expected return exists, and higher expected returns come at a cost of higher systemic risk exposure.

Most stocks rise and fall with the market as a whole. Some stocks tend to rise and fall more than the market, and therefore expose the holder to relatively more gain and loss. Would you like to limit your search based on a measure of how much a stock rises and falls with the market? If you have no preference, leave these boxes blank.
Allow stocks that tend to rise and fall less than the market.
Allow stocks that tend to rise and fall about the same as the market.
Allow stocks that tend to rise and fall more than the market.
8. Sectors and Groups

Tip

Beyond exposure to market risk, a large portion of the price change for most stocks is correlated with the performance of the stock’s industry group. That is, stocks in an industry tend to move together. If you have preferences or aversions for various industries, you can
limit your search by restricting it to certain industries in this question.

If you don’t wish to restrict your search to various industries, move on to the next question.

Stocks can be put into broad categories by industry (function). Would you like to limit your search to specific industries?

Click to show/hide
Consumer Discretionary

Automobiles and Components
Durables & Apparel
Consumer Svcs
Media
Retailing
Consumer Staples

Food & Staples Retail
Food, Bev & Tobacco
Home and Personal Products
Financials

Banks
Diversified Financials
Insurance
Real Estate
Health Care

Health Equip & Svcs
Pharma, Biotech & Science
Industrials

Capital Goods
Commercial Svcs & Supply
Transportation
Information Technology

Software & Svcs
Tech Hardware & Equip
Semiconductors & Equip
Other groups

Energy
Materials
Telecommunication Services
Utilities
9. Additional Screens

Tip

Price-to-earnings (P/E) ratio and price-to-book (P/B) ratio are among the most common measures of fundamental valuation.

For S&P 500 (large-cap) stocks, the average P/E ratio is about 27 and the average P/E ratio is about 5.0. For S&P 600 (small-cap) stocks, the average P/E ratio is about 30 and the average P/E ratio is about 2.7.

You may wish to restrict your search to stocks meeting other specific requirements listed below. If you have no particular preferences over these items, leave them blank for best results.
Parameter Minimum Maximum Units
Price Dollars
Volume Thousands of shares
P/E ratio Ratio
P/B ratio Ratio

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