Searching for Stocks January 2008 StockCentral.com Be sure to review the Notes section for additional details. Searching for Stocks You will need to add new companies to your portfolio over time as possible investment candidates.You will need to add new companies to your portfolio over time as possible investment candidates. How can you find new companies?How can you find new companies? 2 Michael Stigall Reproduced with permission and distributed by StockCentral.com Finding Ideas in Your Daily Life Read the paper, watch the newsRead the paper, watch the news If you hear of an interesting company then find its ticker and investigate it!If you hear of an interesting company then find its ticker and investigate it! IF it meets the basic four filters then save it in your portfolio as a possible candidate. Otherwise, trash it. 3 Michael Stigall Reproduced with permission and distributed by StockCentral.com Screening There are several screening toolsThere are several screening tools Ill useuseKeep in Mind:Keep in Mind: Screening tool looks at annual data only, so recent quarterly trends will not be shown. Since judgment is required to create Upside/Downside Ratios and BUY criteria, these will not be available for screening. 4 Michael Stigall Reproduced with permission and distributed by StockCentral.com Tools Used in this Demo You need:You need: www.stockcentral.com screening toolExcel Notepad Investors Toolkit 5 Requires subscription to data feed.Requires subscription to data feed. The same path exists using other NAIC tools.The same path exists using other NAIC tools. 5 Michael Stigall Reproduced with permission and distributed by StockCentral.com Stock Central 6 Michael Stigall Reproduced with permission and distributed by StockCentral.com Screening Criteria 7 Michael Stigall Reproduced with permission and distributed by StockCentral.com Screening Results 8 Michael Stigall Reproduced with permission and distributed by StockCentral.com Download Results to Excel 9 Michael Stigall Reproduced with permission and distributed by StockCentral.com Save Excel Worksheet 10 Michael Stigall Reproduced with permission and distributed by StockCentral.com Save Screen 11 Michael Stigall Reproduced with permission and distributed by StockCentral.com Saved Screens 12 Michael Stigall Reproduced with permission and distributed by StockCentral.com Open Excel File Go to desktop, and open saved Excel file.Go to desktop, and open saved Excel file. 13 Michael Stigall Reproduced with permission and distributed by StockCentral.com Highlight Tickers Highlight the tickers in column A (all 127 of them).Highlight the tickers in column A (all 127 of them). Column title is not needed.Column title is not needed. 14 Michael Stigall Reproduced with permission and distributed by StockCentral.com Save Ticker List Copy all ticker symbols (press Ctrl-C or select Copy from the Excel menu).Copy all ticker symbols (press Ctrl-C or select Copy from the Excel menu). Open Windows NotePad.Open Windows NotePad. Paste the ticker symbols into Notepad (press Ctrl-V or select Paste from the Notepad menu).Paste the ticker symbols into Notepad (press Ctrl-V or select Paste from the Notepad menu). Save this text file on your desktop as TickerNames.txt.Save this text file on your desktop as TickerNames.txt. 15 Michael Stigall Reproduced with permission and distributed by StockCentral.com Save Ticker List 16 Michael Stigall Reproduced with permission and distributed by StockCentral.com Import Data into Toolkit Close Excel.Close Excel. Open Investors Toolkit.Open Investors Toolkit. Select Import Company | Import Several at Once | BetterInvesting Data Files.Select Import Company | Import Several at Once | BetterInvesting Data Files. 17 Michael Stigall Reproduced with permission and distributed by StockCentral.com Click Import Ticker List Click Import Ticker List 18 Michael Stigall Reproduced with permission and distributed by StockCentral.com Select TickerNames.txt 19 Michael Stigall Reproduced with permission and distributed by StockCentral.com Begin Import Click [OK] to begin import of company data.Click [OK] to begin import of company data. 20 Michael Stigall Reproduced with permission and distributed by StockCentral.com Save in New Portfolio Select an existing or NEW portfolio to bring the companies into.Select an existing or NEW portfolio to bring the companies into. I recommend a New portfolio to help organize files.I recommend a New portfolio to help organize files. 21 Michael Stigall Reproduced with permission and distributed by StockCentral.com Add New Portfolio 22 Michael Stigall Reproduced with permission and distributed by StockCentral.com Importing the SSG Data Files The import process will start.The import process will start. Two types of errors might be reported during import.Two types of errors might be reported during import. 1.Ticker not found. The ticker existed in StockCentral screening database but does not exist in the data files. Click [Cancel] to skip company. 2.Ticker already exists in your portfolio. You can either skip the company or overwrite your existing SSG. If you overwrite, then judgment settings will be lost also. 23 Michael Stigall Reproduced with permission and distributed by StockCentral.com Ticker Not Found If the ticker is not found, you get two screens of information:If the ticker is not found, you get two screens of information: Click [Cancel] on the second screen to proceed.Click [Cancel] on the second screen to proceed. 24 Michael Stigall Reproduced with permission and distributed by StockCentral.com Overwrite Existing Company? If the data already exists in your portfolio, click [No] or your judgment will be lost.If the data already exists in your portfolio, click [No] or your judgment will be lost. 25 Michael Stigall Reproduced with permission and distributed by StockCentral.com Import Complete! When the import process is complete, a list of the companies with errors will be presented (but you cant export the list).When the import process is complete, a list of the companies with errors will be presented (but you cant export the list). 26 Michael Stigall Reproduced with permission and distributed by StockCentral.com Cull Your Results Now the tedious part.Now the tedious part. Pull up each company marked in red (those in the New Portfolio). Visually look for Front Page of SSG:Front Page of SSG: Consistent growth (rail-road track) 15% or more for both Sales and EPS IF it meets both, then continue to the backIF it meets both, then continue to the back In the BUY range 3:1 or better Upside/Downside Failing any of these criteria means DELETE.Failing any of these criteria means DELETE. 27 Michael Stigall Reproduced with permission and distributed by StockCentral.com Reviewing Results All the companies in Red need to have judgment added. Look Anywhere is the new portfolio created, but the companies will be duplicated in the Personal Library. 28 Michael Stigall Reproduced with permission and distributed by StockCentral.com Visually Inspect Growth 29 Michael Stigall Reproduced with permission and distributed by StockCentral.com Delete Inadequate Companies Erase the company from your Personal Library if it doesnt meet criteria.Erase the company from your Personal Library if it doesnt meet criteria. 30 Michael Stigall Reproduced with permission and distributed by StockCentral.com Verify Deletion You may be asked to verify deletion, if this company is also in another portfolio. Click [Yes].You may be asked to verify deletion, if this company is also in another portfolio. Click [Yes]. 31 Michael Stigall Reproduced with permission and distributed by StockCentral.com Advanced Visual Inspection 32 Michael Stigall Reproduced with permission and distributed by StockCentral.com Confirming Visual Trend 33 Michael Stigall Reproduced with permission and distributed by StockCentral.com Examine Recent Quarterly Trends 34 Michael Stigall Reproduced with permission and distributed by StockCentral.com Avoid Erratic Growth 35 Michael Stigall Reproduced with permission and distributed by StockCentral.com Finally, a Possible Candidate 36 Michael Stigall Reproduced with permission and distributed by StockCentral.com But Fails on Back of SSG 37 Michael Stigall Reproduced with permission and distributed by StockCentral.com Next, Review PERT Report Next we find out why a NEW portfolio was suggested.Next we find out why a NEW portfolio was suggested. Our final criteria will be a clean PERT for the company.Our final criteria will be a clean PERT for the company. Open up the new portfolio with the remaining stocks.Open up the new portfolio with the remaining stocks. 38 Michael Stigall Reproduced with permission and distributed by StockCentral.com PERT Overview 39 Michael Stigall Reproduced with permission and distributed by StockCentral.com Look for Clean PERT Rows 40 Michael Stigall Reproduced with permission and distributed by StockCentral.com PERT Warnings A pink flag is a warning the actual growth based on quarterly data is not matching your forecast/expectations.A pink flag is a warning the actual growth based on quarterly data is not matching your forecast/expectations. Adjust your forecast growth on the SSG Section 1 lower, until the pink flag disappears. This is a good reality check on your estimates. If only one column out of three (Sales, EPS, PTP) AND its still in the 15%+ range, then its okay. If multiple columns are showing decreasing growth rates AND the 15% criteria is not met, then you may want to remove the company from further consideration. These are called FLAGGED companies in the next slide. 41 Michael Stigall Reproduced with permission and distributed by StockCentral.com Remove Companies Flagged in PERT Remove all the flagged companies from your Personal Library that were in the new Portfolio (and ONLY in the new portfolio dont remove them if they show up in another portfolio).Remove all the flagged companies from your Personal Library that were in the new Portfolio (and ONLY in the new portfolio dont remove them if they show up in another portfolio). Remove it from the Look Anywhere portfolio if ticker exists somewhere else.Remove it from the Look Anywhere portfolio if ticker exists somewhere else. Look at PERT for the portfolio again.Look at PERT for the portfolio again. 42 Michael Stigall Reproduced with permission and distributed by StockCentral.com Quality Candidates Remain! You should have a clean set of companies in this Portfolio, with few or no flags shown. These are quality firms which can be used to compare against other likely candidates for possible investments. 43 Michael Stigall Reproduced with permission and distributed by StockCentral.com Thank You! from StockCentral!