Message-ID: <27141281.1075840990368.JavaMail.evans@thyme> Date: Tue, 15 Jan 2002 15:23:49 -0800 (PST) From: wscfeedback@wallstreetcity.com To: alewis@ect.enron.com Subject: Stocks That May Top Expectations Mime-Version: 1.0 Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: 7bit X-From: WSC-Analysis @ENRON X-To: ALEWIS@ECT.ENRON.COM X-cc: X-bcc: X-Folder: \ExMerge - Lewis, Andrew H.\Deleted Items X-Origin: LEWIS-A X-FileName: andy lewis 6-25-02.PST In Search of Winning Stocks This Week: Stocks That May Top Expectations 1. Screening for Stocks That May Top Expectations 2. Search Criteria 3. One Stock That May Top Expectations 4. Disclaimer ***********************Our Sponsor************************* FREE REPORT: 10 Stocks To Help You Make It All Back! Still listening to Wall Street's bears? They want you out of the way while they grab today's once-in-a-decade bargains. Don Rowe says investors now have a chance to double their wealth. Get 10 leaders of this new bull market! FREE report: http://www.investools.com/c/go/WALL/WSCE-wallTW8?s=S600 *********************************************************** Wall Street City's Stock Search of the Week 1. Screening for Stocks That May Top Expectations The primary focus of this earnings season will not be so much on how companies performed during the fourth quarter, but rather what their 2002 guidance is. Valuation levels for many stocks have risen materially over the past few months on the anticipation of an economic rebound occurring this year. In order for these valuation levels to be sustained, earnings will have to show a dramatic improvement. Those companies that issue better than expected earnings results and guidance may be the ones to receive the most favorable attention from investors over the coming the months. Stocks With Rising Earnings Estimates That May Top Expectations identifies such companies. The search strategy is built around two key criteria - a streak of at least four consecutive quarters of positive earnings surprises and a recent upward revision in the earnings forecast for the current year. The first criterion establishes that a precedent exists for the company to top expectations, while the second criterion suggests that business conditions have continued to improve. Combining these two criteria results a list of companies that are continuing to thrive in the current climate and have a track record of beating analyst estimates. Using the two criteria by themselves would result in a limited list of stocks, but to improve the validity of the search, we added four additional criteria. Earnings estimates from a minimum of four analysts were required to limit the skewing effects of one overly bullish analyst on the earnings forecast for the current year. Four quarters of revenue growth was required limit the results to only those companies that increasing the topline and not just relying on cost-cutting measures to improve profits. Similarly, requiring a sequential positive change in revenue between the previous two quarters, suggests that the sales growth curve has not been reversed by the recession. Three-week relative performance of no less than 80 percent was required to eliminate those companies may have dropped precipitously over the past few weeks - precipitous drops suggest that sentiment is against a positive earnings announcement. The strategy is designed for both active traders and long-term investors who are looking for investment ideas. The strategy can be used as often as on a daily basis, though it works well when run on a weekly basis as well. Investors can click below to see the current results. http://clyde.investools.com/T/A28.146.1016.1.113719 2. Search Criteria By subscribing to Wall Street City, investors can utilize Power ProSearch to build a search like the one below, created by Wall Street City analysts, to identify stocks with rising earnings estimates that could report better than expected profits. Indicator Mode ------------------------------------------------------------ EPS Increase Last 4-Qtr Between 4.0 - 4.0 Proj EPS 1-Mth Change CFY Between 0.1 - 1,000.0, High Analysts No. Cur FY Between 4.0 - 1,000 Rev. Increase Last 4-Qtr Between 4.0 - 4.0 Rev. Increase Last Qtr Between 100.1 - 99999.9 Rel Performance 3-Wk Between 80.0 - 99999.9 http://clyde.investools.com/T/A28.146.1016.2.113719 3. One Stock That May Top Expectations Overture Services {OVER} has topped analyst estimates every quarter since it turned public in 1999. Safa Raschty at US Bancorp Piper Jaffray predicted in a report yesterday, "Overture will post very strong Q4 results, substantially above the Company's guidance range and in-line to ahead of our high-on-the Street estimate of $84.2 million in revenues and $0.21 EPS". OVER is one of the few Internet success stories, providing a differentiated search engine platform. Companies pay OVER to be listed near the top of its search results for any given subject, thereby reaching an extremely targeted audience. Investors can click below to view the search stategy's results. http://clyde.investools.com/T/A28.146.1016.3.113719 ***********************Our Sponsor************************* Tech Buyback Portfolio Posts Stellar Gains: +39.23% YTD! David Fried knows a stock is undervalued when the company buys back its shares. That's how he earned 39.23% YTD in techs while the benchmark Nasdaq fell 21.82%. 'Buy these 5 techs today,' Fried says. Get them with a FREE trial: http://www.investools.com/c/go/BACK/WSCE-backTX5 *********************************************************** 4. Disclaimer WallStreetCity's Stock Search of the Week is published solely for informational purposes and is not a solicitation or an offer to buy or sell any stock, mutual fund or other security. The information obtained from internal and external sources is considered reliable, but has not been independently verified for accuracy and completeness. WallStreetCity, its employees, and/or officers and directors, may from time to time have a position in the securities mentioned and may sell or buy such securities. Trading involves risk, including possible loss of principle and other losses. Trading results may vary. No representations are being made that these techniques will result in or guarantee profits in trading. Past performance is no indication of future results. REMOVE ME FROM THIS FREE EMAIL LIST To be removed from the email distribution list for the FREE WallStreetCity's Industry Group Analysis Commentary, Stock Search of the Week Commentary, The Week Ahead Commentary and Updates simply click the link below and hit "Send" on the email that is launched. (Or copy and paste the email address below to a new outgoing email message and hit "Send" on the email that is launched). mailto:U-A28.146.113719@newsletter.wallstreetcity.com If you have tried unsubscribing in the past -- and believe that you received this message in error -- please send an email to mailto:yourfeedback@wallstreetcity.com to voice your concerns and be removed from the list.