Thursday, May 31, 2007

Stock Screen: A Kirk Report Inspired Stock Screen

I collected a lot of stock screens this past year. Most use the free deluxe screener available at the MSN Money website. The screens are sometimes hard to find on the MSN website, so I thought I would share what I found.

One of the most popular investing websites is Charles Kirk's The Kirk Report. Much of what he does involves screening for stocks. Below is a screen which is based on several parameters that Mr. Krik is reported to favor. Among other factors the screen looks for poor performing shares with good fundamentals, strong earnings and improving relative price performance.


Screening parameter:
Return on Equity >= 15 (Increase higher to 18%, 20%, etc., to narrow choices)

Screening Parameter:
Leverage Ratio <= 5 (reduce to see stronger balance sheets)

Screening parameter:
Price/Cash Flow Ratio >= 0.1

Screening parameter: 12-Month Revenue => 40 million

Screening parameter: Rev Growth Qtr vs. Qtr >= 20 (reduce to 15% if not enough candidates)

Screening parameter: : 6-Month Relative Strength <= 40

Screening parameter:
On Balance Volume >= 75

Screening parameter:
Last Price >= 50-day Moving Average


Here is a link to the MSN article by Harry Domash with a description of how and why the above parameters are used.

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