Data processing: financial – business practice – management – or co – Automated electrical financial or business practice or... – Finance
Patent
1997-12-20
1999-11-02
Peeso, Thomas R.
Data processing: financial, business practice, management, or co
Automated electrical financial or business practice or...
Finance
705 35, 705 37, B42D 1500
Patent
active
059787783
ABSTRACT:
The invention is in the field of using a computer to select corporate stocks for investment. Fifty stocks are selected from a database on the basis of certain criteria. The stocks are acquired in equal proportions, and the portfolio is rebalanced at the end of an annual term. A method of the present invention uses either a growth strategy, a value strategy, or both strategies. Growth Model 3 strategy selects the stocks with the best 1-year price performance from All Stocks (stocks with market capitalization more than $150 million) with earnings gains for five consecutive years that also have price-to-sales ratios below 1.5. Value Model 3 strategy selects market leading stocks with the highest dividend yields (excluding utilities so they do not dominate the list). Market leading stocks come from the Large Stocks Universe and have: more common shares outstanding than the average stock in the database, cashflows per share exceeding the database mean, and corporate sales that are 1.5 times the database mean. A stock portfolio may be constructed which uses both Growth Model 3 and Value Model 3 in chosen proportion to one another. At the end of an annual term, the amount of money generated by the two strategies is pooled and then re-invested in accordance with the chosen proportion (which may change over time).
REFERENCES:
patent: 5297032 (1994-03-01), Trojan et al.
Canniff Brian P.
Elman Gerry J.
Peeso Thomas R.
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