Ask Colin

How do I set up the Insight Trader Systems Module to find your value model stocks?

Set the lines up like this:

1. PER(D):<=:10

2. AND PER(D):>:0

3. AND DIVYD(D):>=:0

Note that lines 2 and 3 are simply to exclude stocks that don't make a profit or pay a dividend.

In this example I used the arbitrary number of 10 for the PE ratio. This is agood arbitrary level. However, in my book The Aggressive Investor, I explain how to claculate a number from the bond rate, which recognises the effect of the rate of inflation at the time.