Have you ever bought a stock you thought had great earnings, only to see it fail miserably?
It is not enough to have a list of great fundamental stocks. You must go deeper into the analysis of each final candidate on the list. But, what other analysis can be done?
The FATI® Score – Unlocking Big Profits
Everyone has been there and with the FATI® Score you can now start to avoid those types of stocks.
The FATI® Score is based upon leading investment research studies which show stocks with a lower standard deviation of earnings estimates from the consensus (higher degree of agreement among analysts) the better performance of the stock. The study concluded stocks with a higher degree of earnings certainty (lower
standard deviation of estimates) outperformed stocks with a lower degree of earnings certainty by +8.7% per year over a fifteen-year period.
More details of this study are here
That is a significant performance enhancement. One which cannot be ignored. The FATI® Score is perfect for fine tuning stock selection beyond a list of great fundamentally screened stocks. There is no magic here, nor any guarantees, but face it; investing is hard enough. Why not select stocks which have a high probability of outperforming the markets both long and short?
The ‘Short Side’ List
We also analyze for candidates to consider shorting for downward trending markets. The criterion for screening is not exactly the opposite of the long screen. To be most effective with the short list and minimize your risk associated with shorting, it is best to look for newcomers to the short list on a weekly basis.
Remember, shorting is an advanced trading technique. You have unlimited loss potential, so remember to be selective, use a stop loss order and only short in a confirmed downward trending market.
Putting it All Together
There you have it. “Fundamentals Made Simple”. Just select your stocks from the list and go right into your technical analysis. All the fundamental screening has already been done for you. Each and every week you will receive an updated screening of Top Stock Analyzer with the power of the FATI® Score. You can see the score of each stock.
With Top Stock Analyzer each week you’ll receive
Try Top Stock analyzer for a month (4 issues) for ONLY $9.99
One Last Thought
There are two generally accepted approaches to investing. Fundamental and Technical. Which is better is not up for debate here, but instead consider the following;
The majority of institutional investors focus on and purchase companies based upon strong fundamentals
Professional Traders focus on technical indicators, patterns and news events to determine when to buy or sell a stock
Why choose between two methodologies? Don’t, Use Both. First, use the Top Stock Analyzer to focus on the stocks institutional investors are watching and investing in. Next, use technical analysis to determine when to buy or sell the fundamentally screened stocks.