Page 456 - How to Make Money in Stocks Trilogy

326 INVESTING LIKE A PROFESSIONAL

stocks. A 90 rating means the company has outperformed 90% of all
stocks in a critical measurement, earnings growth.
3. A Relative Price Strength rating comparing each stock’s price
change over the last 12 months with those of all other stocks. Bet-
ter firms rate 80 or higher on both EPS and RS.
4. A rating comparing a stock’s sales growth rate, profit margins, and
return on equity to those of all other stocks.
5. A highly accurate proprietary accumulation/distribution rating that
uses a price and volume formula to gauge whether a stock is under
accumulation (buying) or distribution (selling) in the last 13 weeks.
“A” denotes heavy buying; “E” indicates heavy selling.
6 & 7. Volume % change tells you each stock’s precise percentage change
above or below its average daily volume for the past 50 days along
with its total volume for the day.
8 & 9. The current and recent relative performance of each stock’s broad
industry sector.
10–12. Each stock’s 52-week high price, closing price, and change for the
day.
13–21. Price/earnings ratio, dividend yield, if the company repurchased its
stock in the last year, if the stock has options, if company earnings
will be reported in the next four weeks, if the stock was up 1 point
or more or made a new high, if the stock was down 1 point or more
or made a new low, if the stock had an IPO in the last fifteen years
and has an EPS and RS rating of 80 or higher, and if a recent IBD
story on the company is archived at Investors.com.

Not only does IBD follow more stocks and provide more vital data, but
the table print size is much larger and easier to read.
As of this writing in February 2009, the medical sector is number one.
These ratings will change as the weeks and months go by and market condi-
tions, news, and data change. I believe these significant and relevant data
for serious investors, regardless of whether they are new or experienced, are
light-years ahead of the data provided by most of IBD’s competitors. IBD is
the #1 daily business newspaper for investors.
Considering some of the seeming disasters coming out of Wall Street and
the big-city banking community in 2008, we believe we are and have been
providing the American public—with our many books like the one you’re
reading, home study courses, more than a thousand seminars and work-
shops nationwide, plus Investor’s Business Daily—a source of relevant,
sound education, help, and guidance in an otherwise complex but key area