Ask Colin

How do you rate StockDoctor software?

Based on several demonstrations of it and some reading about it, I rate it highly for what it was designed to do - rate the relative credit worthiness and therefore safety in investing in a company. This was the initial purpose of Merv Lincoln's work.

So, if you are thinking of buying a stock or already hold a stock, StockDoctor will tend to give you early alerts as to the financial strength of the companies. As this is dynamic, it will also alert you to deterioration of the financial health of a company.

StockDoctor is also touted as a method for stock selection. Quite clearly, high or improving financial health are important markers for good investments. However, it is based on historical data and this poses the question about its predictive ability. As you will know, I do not believe that anyone can consistently predict the future of markets or stocks. All you can do is identify certain situations which give a good probability of success.

My observation from the demonstrations that I have seen is that StockDoctor tends to confirm what has already been in the charts for quite a while - in other words it is rather late. This does not mean that good profits cannot be made, but my feeling is that the charts tend to lead the data on which StockDoctor rests.