The NASDAQ “SEVENTEEN”
The NASDAQ “17”: Analyze a Stock in 17 Easy Steps
Go to Nasdaq.com – Hold your cursor over Investing Insight
Click on Investing Basics
Under Investing Basics Click on The NASDAQ Dozen
http://www.nasdaq.com/investing/dozen/
The NASDAQ DOZEN is a rational, repeatable process for analyzing the most important fundamental and technical aspects
of any stock.
Your assignment is to analyze your long term stock selection by using the NASDAQ “SEVENTEEN” – we have added 5
other factors that you will use in evaluating stocks.
You will be doing the research according to the instructions and giving your stocks a grade of pass or fail.
The first 5 factors will be explained in class, as to where to find them along with their
passing grade standard.
In the Info Used column, fill in the information that constitutes a passing grade for that specific category.
EXAMPLE: 50-day Average –
passing grade - if the stock has a 50-day average volume of more than 250,000 shares.
After you have scored all 17 factors, add up the passing grades and compare them to the failing grades.
The higher the ratio, the more confident you can be investing in the stock.
For instance, you would feel more comfortable investing in a stock that had 13 passing grades and only five
failing grades—a ratio of 13:4—than you would investing in a stock that only had five passing grades and thirteen
failing grades—a ratio of 5:12.
17:0 – 13:4 are strong candidates for growth
12:5 to 9:8 are moderate candidates for growth
Below 9:8 are considered poor candidates for growth
The NASDAQ “SEVENTEEN” consists of analyzing the following 17 factors:
First 3 factors at http:www.//finance.yahoo.com/ - last 14 factors at http://www.nasdaq.com/
Stock Barometer
Average Volume
Short-Term Price
Movement
Long-Term Price
Movement
12-Month Price Target
Earnings Growth (Year)
Revenue
Earnings per Share (EPS)
Return on Equity (ROE)
Recommendations
Earnings Surprises
Forecast
Forecast Earnings Growth
PEG Ratio
Industry Earnings
Days to Cover
Insider Trading
Weighted Alpha
WHY we look at…
What Constitutes a Passing
Grade?