Wednesday, January 2, 2008

Back to stock - Quantitative analysis

Quantitative analysis describes the way one analyze the stocks based on numbers with no regards to the business.

Company Size - some invest based on the size of the company. Usually the smaller the company, the higher the return.

Screen based investing - Computer makes it easy to put in some formula and finds the stocks that fit the requirements. This will be screen based investing. Looks like there are a few companies selling these types of software out there for personal investing too.

Momentum - They're way popular. They beat expectation. Numbers are better than most expected. Think big growth.

CANSLIM - accelerating Current and Annual earnings; New, as in new products, new markets, or new management; Small capitalization and big volume demand. ; whether the company is a Leader or Laggard; Institutional sponsorship; the direction of the Market. Investor's Business Daily uses this theory.

No comments: