WallStreetSignals.com

Scoring Explained

WallStreetSignals.com has compiled fundamental and technical data on over 9,000 stocks and formulated scores for each stock in several major and minor areas. These scores are then compared to the scores for the entire Industry that each stock is in so that the individual stocks are rating within their own Industry. The details for the data used and the scoring system are available below.. The data for each stock is divided into 6 Major and 4 Minor Areas. Each stock's score in the 6 Major Areas are listed below along with the Total Score ( Average of the 6 Major Scores). The Stock's Minor Areas of Data are also listed but not included in the Total Score. Red, Yellow and Green colors are used to help identify stocks with high scores in both the 6 Major and 4 Minor Areas of data.

A. Color Signals :

= Most Favorable

= Neutral Score

= Least Favorable

B. Scoring . . . .

Stock's Fundamentals -

Max Score = 100%, Min Score = -100%

= 65% & Above

= 64% to 33%

= Below 33%

Stock's Technicals -

The Technical Indicators for each stock includes Bollinger Bands, Directional Movement Index, Moving Average Convergence/Divergence Indicator, Relative Strength Index, Williams %R, On Balance Volume, Momentum Indicator and the Buy/Sell Volume Analysis for Intra-Day, Daily, & 20 Day periods. Each Technical Indicator is given a score based on its direction and then all indicators are added together and divided by the number of indicators to get the average.

Max Score = 100%, Min Score = -100%

= 65% & Above

= 64% to 33%

= Below 33%

Stock's Rating Within It's Industry -

Each Stock's Price to Earnings Ratio, Forecasted Earnings Growth Rate, Earnings Yield, Growth to Earnings Ratio, Average Daily Trading Volume, Sales Growth Rate and Resistance in Down Markets is computed and a "Score" is calculated. That Score is compared to the Score of all the other stocks in that same Industry. This Score shows where this individual stock is compared to all the other stocks in it's Industry. As example, a Score of 300% means that individual stock's Fundamentals are 3 times better than all the other stocks in that Industry.

Max Score = 500%, Min Score = -500%, Average Score for all 7000+ Stocks = 26%

= 70% & Above

= 69% to 30%

= Below 30%

Stock's Value vs. Current Price -

After each stock's numerical Value is calculated, it's current price is compared to it's Value and a Score is derived. If a stock's current price is LOWER than it's determined Value, than a higher Score results as there is room for the price to move up to the determined Value. On the other hand, a current price ABOVE the determined Value results in a low Score as the stock may be overpriced. As example, a score of 225% indicates that the current price is 20 and the determined Value is 65...a difference of 45 points. That indicates the stock's current price is 45 points below it's determined Value which means it could go up 225% to reach it's determined Value.

Max Score = 100%, Min Score = -100%

= 10% & Above

= 9% to 0%

= Below 0%

Stock's Market Timing -

This focuses on the current Price of the stock and the probabilities that the price will move up in the current market conditions. This is derived from several technical indicators.

Max Score = 100%, Min Score = -100%

= 65% & Above

= 64% to 40%

= Below 40%

Stock's Safety -

This measures the statistical probability that the stock will maintain it's value and achieve it's full price appreciation potential.

Max Score = 100%, Min Score = -100%

= 70% & Above

= 69% to 50%

= Below 50%

Total Score -

This is the weighted average of the scores of the 6 Major Areas.

Max Score = 100%, Min Score = -100%

= 70% & Above

= 69% to 50%

= Below 50%

Stock's 2007 YTD Price Appreciation -

Not included in Total Score. This is the difference between this stock's current price and the price at the beginning of 2007.

Max Score = 100%, Min Score = -100%

= 10% & Above

= 9% to 5%

= Below 5%

Stock's Average Daily Volume -

Not included in Total Score. The average number of shares the stock trades each day.

Max Shares = 1,000,000,000, Min Shares = 0

= 400,000 & Above

= 400,000 to 50,000

= Below 50,000

Stock's Dividend Yield

Not included in Total Score. The annual yield based on the annual dividend and the current price of the stock.

Max Yield = 100%, Min Yield = 0%

= 3% & Above

= 3% to 1%

Stock's Dividend Safety and Growth

Not included in Total Score. How safe it is to expect this stock to continue to pay the dividend and that the dividend will be increased on a regular basis.

Max Score = 100%, Min Score = 0%

= 65% & Above

=65% to 50%

Please Remember: WallStreetSignals.com is intented to be a "Starting Point" when reviewing stocks. Please do not make any investment decisions without doing your own research and consulting with an Investment Professional. There are no short cuts and please use this site for informational purposes only, not as a recommendation to buy or sell any securities as that is NOT the intent of this information.

NOTE: WallStreeSignals.com is NOT a broker, bank or financial institution and does not buy or sell securities. WallStreetSignals.com has no financial interest in any of the stocks mentioned here and does not receive any compensation for mentioning any of these stocks. All the data used to calculate ratings and scores are obtained from recognized sources but has not been verified by us and cannot be guaranteed to be accurate or complete. Every effort has been made to insure all data is accurate but errors by data sources or others cannot be considered the responsibility of WallStreetSignals. This page is not an offer to buy or sell any securities and any data on this page cannot be considered a recommendation to buy or sell any security. Please consult an investment professional before making any investment decisions.

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