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All Season Growth

An Overview of the All Season Growth Investment Strategy

Location of Screen:  The screen was originally discussed in an MSN article by Harry Domash and is run on Sum of Some using the MSN screening tool

Updated: Continually, based on current market data

Inception: Article not dated, but estimated around early 2005

Created By: Harry Domash (See the Future Blue Chip article for more info on Harry Domash)

Stock Screen Parameters for the All Season Growth Screen

The below bullet points use technical parameters that can automatically be screened.  These parameters are run by Sum of Some using the MSN screening tool.  The text in italics explains how the parameter was defined in the screener.

1) Growth: Find companies with immediate growth in both earnings and revenue, and expected growth in the future

Parameter: Current Year EPS Growth Rate >= 20
Parameter: EPS Growth Next Year >= 20
Parameter: Revenue Growth Year vs Year >= 20

2) Profitability: Find companies with high profitability with their shareholders investments, not through assuming debt

Parameter: Return on Equity >= 15%

3) Debt: Find companies that are less in debt than the rest of the industry

Parameter: Debt to Equity Ratio <= Industry Average D/E

4) Price Ratio: Find companies with a suitable price to sales ratio.  A reasonable growth stock will trade around 3-8.  Avoid those with a P/S higher than 9 as it may indicate growth expectations are baked into the stock price already

Parameter: Price to Sales Ratio <= 8

5) Institutional Buying: Find companies that the big boys like

Parameter: % Institutional Ownership >= 35%

6) Safety: Get rid of the small, more volitile companies by sticking to the companies with some market capitalization

Parameter: Market Capitalization >= 500,000

7) Surprises: Find companies that haven’t surprised the market in a negative way by reporting less than expected earnings

Parameter: Recent Quarter Surprise % >= 0

8) Trend: Find companies which are in a short-term and long-term trend upward

Parameter: Last Price > 50-Day Moving Average
Parameter: Last Price > 200-Day Moving Average

Note: Originally this article specified an additional parameter stating the short interest ratio should be <= 9.  However, the MSN screening tool has eliminated this parameter, so it has been removed from the screen