3. Mid Cap recent IPO. According to the IBD framework, recent IPO (1-3 years) mid-cap companies ($2-$10B) generate the best returns for traders.
I use finviz for this.
Select Mid Cap & IPO date fields.
4. Volume breakout. Where there is more than unusual volume, that means somethings up. Either buying or selling activity. Worth a review.
On Finviz, select Unusual volume on the signal (top)
5. Small Cap in hot sector. Harder to find these, but you can. No easy way to scan these, but find the stocks in the hot sector, search on Twitter and you will find someone mentions names of small cap names in the same sector.
Hit or miss, but this is speculative and risky
Final thoughts: Keep in mind these are all just my processes. Does not mean they work. Back testing means it works for the data and timeframe I tested.
Always do a deeper dive on the names you get from screens and scanners. Put them in a watchlist and notice their behavior
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1. One is NOT always better than the other for retail investors and the company.
2. Bankers ALWAYS make money regardless of for of public listing
In an IPO - bankers make the most money but the "allocated large investors - such as Mutual funds, Hedge funds" get early dibs; BUT they have to hold for 6-12 months. There is also a lockup expiration period preventing insiders from selling at IPO
In a direct listing - bankers makes less money because the company does not need the money. The company is merely providing early investors (and employees) an exit - Who want the best price for their stock.
My process: After screening / scanning I go to my next step - Validate.
This is NOT financial forensic analysis.
This step for me is to find red / yellow / green flag. Please use and share if you find it useful
In this step the objective is to understand the business and get a feel for what will make it grow. I also do a technical evaluation (if appropriate) and market landscape map.
For this thread I am going to only focus on metrics
My first manager at Cisco was Sue Bostrom, (bless her soul). She taught me about input metrics, output metrics and I learned about CX (Customer Experience) metrics at $AMZN
Most financial metrics are output metrics - they tell you what happened POST them happening
1. Twitter: I have created 5 private twitter lists. Please dont ask me to share them. The reason is people get upset when they are or are not on any list. Not worth it. Create your own list.
Make a list of long term investors, traders, chart experts, etc. I scan this daily.
2. Reddit. This is confusing since it is harder. My hack is that I have recently started using Swaggy Stocks. I dont recommend it yet, but it is worth a try. swaggystocks.com/dashboard/wall…
Screeners and Scanners: My process explained. There is a difference between Screening (Finviz) and Scanning (Koyfin) for stocks. I will share what I do and if you find it useful, please use it, and share.
Screener: I "screen" for stocks on finviz using some parameters I set. In this example, I am looking for HIGH growth, stocks that have recently (<1 year) IPOed.
You can further refine this list by adding volume for example.
I have used 30% QoQ EPS and Sales growth.
Scanner. Screen gave me 23 stocks. I cut and paste the tickers into a watchlist in Koyfin
Go to app.koyfin.com/mov and select the watchlist. View shows you relative volume leaders( to the right) and 1 day return (top)
You can select other time frames as well (1 wk, 1mo)
Here is my process since many of you asked. It is simple. 5 Steps: 1. Screen 2. Validate 3. Verify 4. Watch 5. Average In
1. Screen:
I try to look for very high quality companies (30% growth Rev + EPS) Or one of my 15 screeners - opportunistic (explain later)
Check out @alphacharts365 for a video on "finviz" screening. He's a good guy.
2. Validate:
I try to check growth (consistency) and basic financials check
I will also go their website and read as much as I can
I will gather some market reports - @skaushi is a star at this.
I try to also check for future growth expectations - marketbeat helps you there
How to "Do your own research" when you dont have time or the inclination but also dont want to blindly follow "FinTwit Experts"?
A short thread.
Only valid for these times of <whoops, I heard it about it this yesterday and it is up 20% already>
You see it in many FinTwit posts - "Not financial advice. Do your own research DYOR".
And you are thinking - Damm I dont have the time or the inclination to DYOR. Some may not have the skills, but that's for another thread.
So how do you quickly DYOR?
Assumptions: 1. You have a full time job and investing is "your passion", "side gig", "way to create wealth", "second income stream", etc. 2. You're area of expertise is not in the field that the stock recommendation is made. E.g. you are a doctor and the stock is a Space play