ST Perf Indicator
ALL of the BUY List stocks are recommended for acquisition, however, FOR BOTH SHORT-TERM and LONG-TERM INVESTORS our "ST Perf Indicator", our proprietary algorithm, IS INTENDED TO HELP YOU CHOOSE STOCKS THAT WILL REFLECT INITIAL PERFORMANCE, in the first 12 months, SIMILAR TO, or better than, THE MAJOR MARKET INDICES. The greater the number UP TO A POSITIVE 2.75, the greater the likelihood, HOWEVER, NUMBERS GREATER THAN 2.75, or less than 0.00, ARE VIEWED AS A NEGATIVE indicator.
We know that investors are most satisfied with their investing decisions during the first year if their diversified portfolio performs at least approximately in line with the S&P 500 index. The average "ST Perf Indicator" for the equal-weight S&P 500 is approximately 0.00.
To help investors select a diversified portfolio, we group our listings of stocks first by the ten major sectors of the economy, and within those sector groups the stocks are ordered by our "ST Perf Indicator". Our "ST Perf Indicator" is provided in an attempt to help investors be more likely in the first year of holding a portfolio, of a diversified group of stocks in at least 20 companies, to have the performance of that portfolio approximate the performance of the S&P 500.
To the extent that a diversified portfolio's results are in line with our expectations for our "ST Perf Indicator", short-term traders in stocks (and options) should also find our screening lists, and this proprietary indicator's incorporation therein, of interest.