Stock Selection Links

Mark Hulbert discusses turnaround investing, which tends to select small cap, highly volatile stocks:

"...they mean stocks of companies that, in the two quarters prior to the most recent one, had flat or falling earnings per share, and which in the most recent quarter showed improved earnings. The hypothetical portfolio that the firm constructed contained the 20 stocks from this larger group of turnaround issues with the largest quarterly earnings improvement in the latest quarter. Each stock was kept in the portfolio so long as the company continued to show earnings improvement; if not, it was replaced with whatever new turnaround company was at the top of that quarter's ranking.

Ford first started tracking this stock-picking approach at the end of 2000...Ford's hypothetical turnaround portfolio since then has produced a 28.4% annualized return..."

The Reuters Select Stock Screener features several pre-built screens.

Why stocks with disappointing earnings tend to rebound (hint: it's psychological).

Buffett/Graham style screening Part 1 and Part 2.

The Confused Capitalist highlights some of the screening rules from The Single Best Investment book.

Quant Investor discusses how bankruptcy announcements can result in stock rebounds, an example of trading on the news.

Machines are better stockpickers.  Ode to a Quant: Why people don't/won't use machines, even if they are better.