Written by: Robert and Russell Markham
There is a very interesting WatchList in VectorVest Australia. Have you seen the “HCIP Favorites” WatchList? This WatchList is per the group: High CI Prospects, which can be found in the Viewers tab and then housed in our WatchLists listed down the left-hand side of the page.
Within the High CI Prospects group, you will see many WatchLists starting from July 2012 right through to the current month 2018. Each one of these WatchLists denotes some of the best CI stocks each month.
The WatchList I want to take a closer look at is the one at the end of the list: HCIP Favorites. This is where we house some of our favourite CI stocks which have stacked up well in recent months.
As of 2nd October, the top 10 HCIP Favorites per the WatchList are: NHC.AX, STO.AX, OMH.AX, SSM.AX, SCO.AX, AQZ.AX, NWH.AX, ASB.AX, ADH.AX, D2O.AX
Taking these 10 stocks and running a QuickTest I get the following:
4 January 2016 to 2 October 2018: 600.98%
3 January 2017 to 2 October 2018: 192.85%
2 January 2018 to 2 October 2018: 35.18%
For the test run on 3 January 2017, D20.AX was not around at that time and the test therefore was for 9 stocks. For the QuickTest run on 4 January 2016, D20.AX and SCO.AX were not around and therefore the test run accounted for 8 stocks in total.
Let’s take the 10 stocks listed above and add these to a WatchList. In Viewers, per the WatchList heading on the left-hand side of the page, find the group called My WatchLists and click on this group. Create a new WatchList per this group (by right clicking on the group: My WatchLists, and then select New WatchList). Call the WatchList: Top 10 HCIP 2 October. Now add in the 10 stocks into this newly created WatchList where it notes Add Symbol(s). Enter in: NHC.AX, STO.AX, OMH.AX, SSM.AX, SCO.AX, AQZ.AX, NWH.AX, ASB.AX, ADH.AX, D2O.AX and then select Add once you are complete. The WatchList will now populate with these ten stocks.
Have a look at the WatchList Average per the bottom of the screen. Some very health looking numbers! The average Relative Value (RV) of the WatchList at time of writing is 1.54, the Relative Safety (RS) at 1.10. RV and RS are our fundamental indicators. These indicators are on a scale of 0.00 to 2.00. The higher above one, the stronger these stocks are! And look at how strong the Comfort Index (CI) score is, at 1.50! CI looks at a stock’s ability to resist severe and/or lengthy price declines. Also note the Earning Growth (GRT) at 27 (that being 27%). GRT reflects a company’s one to three year forecasted earnings growth rate in percent per year.
Right click on the WatchList Average line (anywhere on this bottom line) and select: View Average WatchList Graph. Put on the 12-month leading forecast on earnings (EPS) and CI indicators. If you do not have this indicator on your graph already, click on Add Parameter and add in CI which is found in the Capital Appreciation Parameters, same too for the EPS indicator. These are all trending up very nicely. Notice that the CI for this WatchList broke above 1.00 on 16 November 2017 when the average Price was $1.991. As of 2nd October, the average Price was $2.945, that’s more than a 47% increase.
Next time you are looking for a few high momentum stocks, you may wish to look at the High CI Prospects group and consider the HCIP Favorites WatchList.
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DISCLAIMER: THE ABOVE ARTICLE DOES NOT CONSTITUTE FINANCIAL ADVICE. PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. YOU SHOULD CONSULT WITH YOUR LEGAL, TAX, FINANCIAL, AND OTHER ADVISERS PRIOR TO MAKING ANY INVESTMENT.