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Some time ago I enquired whether anyone had come across a programme called Stockdoctor. I pursued this line of enquiry and received information from them together with a trial period of use. The organisation provides a FA breakdown on over 1000 Oz companies. They use a series of ratios with which to come up with a rating for the company. It is comprehensive with very, very good software to boot. From these initial 1000 companies they then identify around 50 companies which they call their Star stocks that have particularly good prospects for a share price increase.
Stockdoctor is not cheap. It costs $A1400 to set up and followed by $A1000 per year thereafter. Good financial information always costs plenty !!
Bear in mind that the Star stock recommendations are dynamic and constantly changing but,nevertheles, I ran a paper excercise to try to determine what the return would be over a period of a year.
The excercise ran from 1st Jan 2001 to 1st Jan 2002.
I first sorted the Star stocks alphabetically.
I then picked out 15 or so stocks which I thought would do well and which I liked. I picked this figure because it is the approximate number of companies I intend putting money into later this year.
This is the list - AAT,ARP,ALU,AVJ,BKW,CDO,CXP,HSP,IGP,ION,JJS,PHY,PPH,CRT,DGD,HFY.
I then picked the top fifteen from the alphabetical listing excluding those already included the the list above with no exceptions.
I then did the same but picked the bottom fifteen.

The results are as follows.
The worse selection was the bottom half alphabetically which returned 16%. However, this included four losing dogs which I would not have retained. If these four had been discarded then the return on the rest would have been 21%. In fact the return would have been higher because I would have re-invested the money into winners.
The next best selection was the top of the list alphabetically which returned 29%. I also had three losing dogs which, again I would have discarded.
The best selection was my own gut feeling picks which returned a whopping 81% - I can't claim this to be anything other than luck but if you average things out the returns are extremely good.

You have to make up your own mind bearing the buy-in costs but I'm impressed with Stockdoctor. I intend using their picks because all of the FA work has been done and I would then use TA for entry and exit points.
Hope this is of interest to some on the Board.
Regards
Harmy





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