stock ranking criteria
DESCRIPTION
Portfolio constructionTRANSCRIPT
FactorBasis of Ranking
Profitability
)/2
Deviation
MV%-Intrinsic Value%
Industry
Best Industry=0.9
Least Attractive Industry=0.1(According to Industry Analysis industry is catagorised)
Historical profitability /Historical Dividend
Growing EPS/dividend= 0.6
Stable= 0.4
Volatile =0.2
Declining =0
Institutional Holding
0-5% = 0.2
6-10% = .4
11-15% = 0.6
16 20% = 0.8
21 25% = 1
26 -30% = 1.2
31-35% = 1.4
36-40% = 1.6
41 -45%= 1.8
More than45 % =2
Insider Holding
0-5% = 0.2
6-10% = .4
11-15% = 0.6
16 20% = 0.8
21 25% = 1
26 -30% = 1.2
31-35% = 1.4
36-40% = 1.6
41 -45%= 1.8
More than45 % =2
MGT qualityNo information / bad = 0
Moderate = 0.25
Good = 0.5
Distinctive competencyNO distinctive competency = 0
Moderately strong distinctive competency = 0.50
Strong distinctive competency = 1
Insider Sales
Selling Trend = -0.50
No trend = 0
Purchase Trend = 0.5