Ask Colin

Is the 52-week new high scan the only way you find stocks of interest?

No. I have three ways to find companies of interest:

1. A technical scan for stocks that filters out stocks making 52-week new highs. These stocks will be either breaking out of accumulation zones on my value model, consolidation zones on my growth model or in established uptrends. They will be of most interest when the scan brings them up the first time. I will then check their fundamentals.

2. A fundamental scan based on PE ratio. I then check their chart to see how they look against the value and growth models. So, this is a variation on the first method, taking the fundamentals first and then checking the technicals, rather than the other way around.

3. A visual scan of the charts of all stocks I may be interested in periodically and whenever I read something about a stock. I will look first at the chart for similarity to the value and growth models and then check the fundamentals if they are.

Keyword: