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No. of Recommendations: 10
Posted on both the Fab 15 and China Connection board.

First, if you have been with me from the start in this, you've noticed that most of my top rated stocks have been trending down in the numerical rating.

WHY IS THAT?
It is because of the best of all possible good news! The stock prices have been going up, plus, I have introduced some new elements/factors/criteria to my spreadsheet since the first postings here, and new factors tend to average down the ratings a little.
But MOSTLY, the upward movement of the prices has caused my system to look at them as not-so-good a value, and, in contrast, to raise the ratings of stocks that have not made their move yet -- for whatever reason.
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Second, wouldn't it have been nice to get into SINA, SOHU, and NTES back when they were still in the early $teens. My system as it is now, [ver.6] is designed to catch stocks that have proved to be somewhat safe with a minimum standard of the last three quarters having real and upward earnings.

I'm going to back-test my system to see what happens when I use TWO quarters of upward earnings, allowing us to capture stocks 3 months earlier.
Will the potential stumbles-and-losses offset the gains, or not?

More much later on this, as it will probably be a 2-3 month project.
My educated guess is that we'll do much better with the two quarter system, and much worse.

But as for now, sleep easier, knowing that the Fab 15 and China Five are a little safer because of the current three-quarter criteria.

Larry
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