No. of Recommendations: 19
Below is a summary of the data I've collected so far on generating Impact Values, including an
example of how to apply impact values to create a consolidated ranking of stocks.  The data
is presented in 8 sections:

Section 1 = PEG  Impact Value Tables
Section 2 = RS52 Impact value Tables
Section 3 = Plow Impact Value Tables
Section 4 = +20/-10 Impact Values by Screen Rankings
Section 5 = Impact Values applied to PEG/RS52/Plow rankings as of 8/25/2000
Section 6 = Definition of an Impact Value
Section 7 = Method of data collection
Section 8 = Glossary and terminology

Section 1 = PEG Impact Value Table:

    Desc       +20/-10    2x    3x    GT   +5%  +10%  +15%  +20%    LT   -5%  -10%  -15%  -20%
    ---------- ------- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- -----
    PEG  1-1     0.886 0.870 0.929 0.922 0.898 1.128 1.140 0.972 1.087 1.111 1.238 1.258 1.299
    PEG  2-2     1.213 1.113 1.091 1.128 1.102 1.153 1.272 1.389 0.857 0.866 0.945 1.192 1.299
    PEG  3-3     1.632 1.100 1.106 1.161 1.087 1.303 1.579 1.736 0.821 0.678 0.651 0.795 0.519
    PEG  4-4     1.032 1.087 1.106 1.041 1.181 1.203 1.228 1.111 0.954 1.036 1.042 1.126 0.909
    PEG  5-5     0.780 1.010 0.988 0.944 0.961 0.902 0.833 0.694 1.063 1.130 1.140 1.192 1.429
    PEG  6-6     0.894 0.959 0.988 0.900 0.992 0.827 0.746 0.833 1.111 1.243 1.042 0.927 0.390
    PEG  7-7     0.751 0.946 0.870 0.944 0.945 0.827 0.526 0.625 1.063 1.073 1.107 1.060 1.299
    PEG  8-8     1.122 0.997 1.032 1.020 0.961 1.003 1.053 0.903 0.978 0.791 0.717 0.530 0.519
    PEG  9-9     0.966 0.959 0.988 0.976 0.992 0.827 0.921 0.972 1.027 1.017 1.042 0.927 1.039
    PEG 10-10    0.843 0.959 0.900 0.965 0.882 0.827 0.702 0.764 1.039 1.055 1.075 0.993 1.299
    ---------- ------- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- -----

    Impact values by a sample grouping of PEG rankings:

    Desc       +20/-10    2x    3x    GT   +5%  +10%  +15%  +20%    LT   -5%  -10%  -15%  -20%
    ---------- ------- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- -----
    PEG  1-1     0.886 0.870 0.929 0.922 0.898 1.128 1.140 0.972 1.087 1.111 1.238 1.258 1.299
    PEG  2-4     1.267 1.100 1.101 1.110 1.123 1.220 1.360 1.412 0.878 0.860 0.879 1.038 0.909
    PEG  5-10    0.885 0.972 0.961 0.958 0.955 0.869 0.797 0.799 1.047 1.051 1.021 0.938 0.996
    PEG 11+      0.708 0.777 0.769 0.766 0.764 0.695 0.637 0.639 0.837 0.841 0.817 0.751 0.797
    ---------- ------- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- -----

Section 2 = RS52 Impact value Table:

    Desc       +20/-10    2x    3x    GT   +5%  +10%  +15%  +20%    LT   -5%  -10%  -15%  -20%
    ---------- ------- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- -----
    RS52  1-1    1.010 1.114 1.025 1.040 1.125 1.253 1.273 1.200 0.955 1.093 1.176 1.130 1.075
    RS52  2-2    1.255 1.001 1.083 1.029 1.125 1.230 1.461 1.714 0.967 0.968 1.088 0.960 0.968
    RS52  3-3    1.178 1.039 1.098 0.986 1.094 1.093 1.161 1.429 1.016 1.022 1.029 0.960 1.290
    RS52  4-4    1.247 1.114 1.127 1.073 1.063 1.230 1.311 1.371 0.919 0.878 0.882 1.130 1.075
    RS52  5-5    0.830 0.964 0.937 0.986 1.063 1.025 0.824 0.629 1.016 1.039 0.912 0.960 0.968
    RS52  6-6    0.828 0.901 0.893 0.910 0.909 0.843 0.712 0.686 1.100 1.183 1.000 1.130 0.968
    RS52  7-7    0.815 0.889 0.805 0.932 0.847 0.752 0.749 0.743 1.076 1.093 1.118 1.243 1.290
    RS52  8-8    0.958 1.051 1.098 1.073 1.032 0.866 0.974 0.971 0.919 0.878 1.059 0.847 0.645
    RS52  9-9    0.858 0.989 0.966 1.018 0.878 0.797 0.749 0.629 0.979 0.842 0.853 0.791 0.753
    RS52 10-10   0.844 0.939 0.966 0.953 0.863 0.911 0.787 0.629 1.052 1.004 0.882 0.847 0.968
    ---------- ------- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- -----

    Impact values by a sample grouping of RS52 rankings:

    Desc       +20/-10    2x    3x    GT   +5%  +10%  +15%  +20%    LT   -5%  -10%  -15%  -20%
    ---------- ------- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- -----
    RS52  1-1    1.010 1.114 1.025 1.040 1.125 1.253 1.273 1.200 0.955 1.093 1.176 1.130 1.075
    RS52  2-4    1.227 1.051 1.103 1.029 1.094 1.185 1.311 1.505 0.967 0.956 1.000 1.017 1.111
    RS52  5-10   0.858 0.955 0.944 0.979 0.932 0.866 0.799 0.714 1.024 1.007 0.971 0.970 0.932
    RS52 11+     0.686 0.764 0.755 0.783 0.746 0.692 0.639 0.571 0.819 0.805 0.776 0.776 0.746
    ---------- ------- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- -----

Section 3 = Plow Impact Value Table

    Desc       +20/-10    2x    3x    GT   +5%  +10%  +15%  +20%    LT   -5%  -10%  -15%  -20%
    ---------- ------- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- -----
    Plow  1-1    1.326 1.036 1.042 0.930 1.142 1.389 1.403 2.059 1.077 1.247 1.171 1.442 1.486
    Plow  2-2    1.461 1.050 1.110 1.028 1.262 1.279 1.559 1.900 0.969 0.869 0.890 0.721 0.849
    Plow  3-3    1.204 1.188 1.179 1.083 1.162 1.316 1.169 1.425 0.909 1.069 0.984 1.202 1.274
    Plow  4-4    0.751 0.953 1.008 0.941 0.982 1.060 1.169 0.633 1.065 1.069 1.124 1.202 1.486
    Plow  5-5    0.943 1.078 1.110 1.094 1.082 0.841 0.702 0.792 0.897 1.002 0.890 1.322 1.486
    Plow  6-6    0.597 0.967 0.957 0.996 0.902 0.804 0.702 0.317 1.005 0.935 0.890 0.721 0.637
    Plow  7-7    0.679 0.973 0.859 1.012 0.746 0.735 0.627 0.478 0.987 1.075 1.036 0.725 0.640
    Plow  8-8    0.844 1.009 0.974 1.105 0.942 0.804 0.779 0.633 0.885 0.869 0.890 0.962 1.061
    Plow  9-9    0.836 0.886 0.869 0.946 0.958 0.818 0.872 0.967 1.059 1.042 1.382 1.101 0.648
    Plow 10-10   1.028 0.857 0.888 0.864 0.821 0.950 1.013 0.792 1.148 0.824 0.749 0.601 0.425
    ---------- ------- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- -----

    Impact values by a sample grouping of Plow rankings:

    Desc       +20/-10    2x    3x    GT   +5%  +10%  +15%  +20%    LT   -5%  -10%  -15%  -20%
    ---------- ------- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- -----
    Plow  1-3    1.330 1.092 1.110 1.014 1.189 1.328 1.377 1.795 0.985 1.062 1.015 1.122 1.203
    Plow  4-10   0.814 0.961 0.953 0.994 0.919 0.859 0.838 0.658 1.006 0.974 0.994 0.948 0.913
    Plow 11+     0.651 0.768 0.762 0.795 0.735 0.687 0.670 0.527 0.805 0.779 0.795 0.758 0.730
    ---------- ------- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- -----

Section 4 = +20/-10 Impact Values by Screen Rankings

    For individual rankings:

    Desc    1     2     3     4     5     6     7     8     9    10    11+
    ----  ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- -----
    PEG   0.886 1.213 1.632 1.032 0.780 0.894 0.751 1.122 0.966 0.843 0.708
    RS52  1.010 1.255 1.178 1.247 0.830 0.828 0.815 0.958 0.858 0.844 0.686
    Plow  1.326 1.461 1.204 0.751 0.943 0.597 0.679 0.844 0.836 1.028 0.651
    ----  ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- -----

    For the sample grouped rankings:

    Desc    1     2     3     4     5     6     7     8     9    10    11+
    ----  ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- -----
    PEG   0.886 1.267 1.267 1.267 0.885 0.885 0.885 0.885 0.885 0.885 0.708
    RS52  1.010 1.227 1.227 1.227 0.858 0.858 0.858 0.858 0.858 0.858 0.686
    Plow  1.330 1.330 1.330 0.814 0.814 0.814 0.814 0.814 0.814 0.814 0.651
    ----  ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- -----

Section 5 = Impact Values applied to PEG/RS52/Plow rankings as of 8/25/2000

    Stock    PEG  RS52  Plow Final Rank
    -----  ----- ----- ----- ----- ----
    PMCS   0.708 0.830 1.326 0.779   1
    IDTI   1.632 0.651 0.651 0.692   2
    LLY    0.708 0.651 1.461 0.673   3
    ITWO   0.708 1.255 0.651 0.578   4
    NTAP   0.708 1.247 0.651 0.574   5
    MWD    0.708 0.651 1.204 0.555   6
    BEAS   0.708 1.178 0.651 0.543   7
    CMX    1.213 0.651 0.651 0.514   8
    DGX    1.122 0.651 0.651 0.476   9
    TLAB   0.708 0.651 1.028 0.474  10
    -----  ----- ----- ----- ----- ----
    NEWP   0.708 1.010 0.651 0.465  11
    ORCL   0.708 0.844 0.751 0.448  12
    IVX    0.708 0.958 0.651 0.441  13
    APC    1.032 0.651 0.651 0.438  14
    RTRSY  0.708 0.651 0.943 0.435  15
    IMPH   0.966 0.651 0.651 0.409  16
    SFA    0.708 0.858 0.651 0.396  17
    DELL   0.708 0.651 0.844 0.389  18
    AMGN   0.708 0.651 0.836 0.385  19
    JDSU   0.708 0.828 0.651 0.382  20
    -----  ----- ----- ----- ----- ----
    ADAC   0.894 0.651 0.651 0.379  21
    LMS    0.886 0.651 0.651 0.376  22
    SEBL   0.708 0.815 0.651 0.376  23
    PLXS   0.843 0.651 0.651 0.357  24
    TLB    0.780 0.651 0.651 0.331  25
    CDWC   0.751 0.651 0.651 0.319  26
    Others 0.708 0.686 0.651 0.316  27
    NOK    0.708 0.651 0.679 0.313  28
    PFE    0.708 0.651 0.597 0.275  29
    -----  ----- ----- ----- ----- ----

Section 6 = Definition of an Impact Value

    An impact value is the percentage of "winners" in a subgroup divided by the
    percentage of "winners" in the entire population.

    For example, the Plow#1 rank had 13 stocks out of 175 that had a monthly ROI
    that exceeded the S&P 500 by 20 percentage points, while the total of all 10
    Plow rankings had 63 stocks out of 1750 that did the same.  The percentage
    of "winners" in the subgroup is 7.4% (13 / 175) and the percentage of
    "winners" in the entire population is 3.6% (63 / 1750).  Therefore, the
    impact value is 2.06 (7.4% / 3.60%).

    An impact value of 1.0 means the group has as many "winners" as we would
    have expected if the group was based on a random selection of stocks.  The
    lower the value, the fewer "winners" the group has relative to the whole.
    The higher the value, the more "winners" the group has relative to the
    whole.  An impact value can be interpreted directly as a percentage method.
    For example, an impact value of 0.6 means that there are 40% fewer "winners"
    in the group than we should expect, while an impact value of 2.5 means that
    there are 150% more "winners" in the group than we should expect.

Section 7 = Method of data collection

    I used Jamie Gritton's TMF Workshop Page to generate monthly ROI for PEG,
    RS52, and Plow for each of the 10 rankings, saving the monthly ROI of the
    rank and S&P 500.  I then used the sum of all 10 rankings as the "universe"
    of stocks for generating the impact values for that method.

Section 8 = Glossary and terminology

    2x  IV = Impact value of ROI being double S&P 500
    3x  IV = Impact value of ROI being triple S&P 500
    GT  IV = Impact value of ROI being more than S&P 500
    LT  IV = Impact value of ROI being less than S&P 500
    +n% IV = Impact value of ROI being n percentage points more than S&P 500
    -n% IV = Impact value of ROI being n percentage points less than S&P 500

    For 2x and 3x IV's where the S&P 500 had a negative ROI, I counted the month
    as a "winner" if the ROI was greater than the S&P 500 ROI.

    The "+20/-10" column is created by dividing the "+20%" impact value by the
    "-10%" impact value and taking the square root of the result.  This should
    have the result of maximizing the probability of "+20%" winners versus the
    "-10%" losers.

    The "+11" column is just a guesstimate of "All other" stocks that are not in
    the top 10 ranking slots.  I set it to 80% of the impact value for the
    lowest group of the 10 ranked stocks in each category, assuming that the
    ranking would pick stocks that would outperform the rest of the category.
    Ideally, the "population" for creating the impact value should be all stocks
    instead of the 10 ranked stocks I used, since that would allow true impact
    values to be generated for all rankings.  However, that data was not
    available to me.  It would probably increase the impact values of the 10
    ranked stocks, but the relative values between the 10 rankings should be
    about the same.

    In Section 5, the "Final" column is simply the product of the impact values
    shown for each stock.  The "Rank" is just a ranking of the "Final" column.
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