MSN Stock Scouter
An Overview of the MSN Stock Scouter Investment Strategy
Location of Screen: The screen is run and posted online at MSN
Updated: Daily
Inception: 2001
Created By: Jon Markman, published on MSN
Jon Markman:
- Author at MSN, JonMarkman.com (which publishes the Strategic Advantage and Trader’s Advantage guides/newsletters), and his personal blog, Rank Speculation along with contributions to other publications
- Background including portfolio manager and senior investment strategist for a hedge fund, managing editor and columnist at CNBC, and editor, columnist, and reporter at the Los Angeles Times
- Author of the book Swing Trading: Power Strategies to Cut Risk and Boost Profits
MSN Stock Scouter Investing Style Summarized
The exact algorithm is not publicly shared, but the creator has summarized a similar system in his book listed above, and gives the following comments on the Stock Scouter strategy. The MSN website has a good demo of this strategy and tracks the lifetime results similar to how we do at Sum of Some, minus the additional scoring components of reliability and the ability to track performance in various market conditions
1) Start with the 6,000 largest companies trading on the US stock exchanges. This is likely based on market capitalization
2) Select stocks which are most likely to increase over the next six months. This may be based on earnings growth, revenue growth, and expectations
3) Select stocks which have a low volatility. This can be determined by a stocks beta.
4) Pick stocks which fit the profile of currently profiting stocks. The three profile types considered are the stocks industry, market cap, and whether it is a growth or value stock. For example, if large caps are outpacing the market, favor will be given to large caps. If a specific industry is currently outpacing the market, favor will be given to that industry.
5) Hold the stocks for 6 months, then sell and buy a new set which match the criteria
