Copyright 2002 ICLUBcentral Inc. – All rights reserved Understanding Screening Using NAIC Stock Prospector
Copyright 2002 ICLUBcentral Inc. – All rights reserved What is Screening? Searching a database to find companies with specific characteristics Reducing 11,000+ companies to a manageable number for analysis
Copyright 2002 ICLUBcentral Inc. – All rights reserved Screening Steps 1.Set search (investment) objectives 2.Set search (screening) criteria 3.Select items to report 4.Set importance factors (weighting) 5.Sort 6.Viewing & printing the results
Copyright 2002 ICLUBcentral Inc. – All rights reserved NAIC Stock Prospector
Copyright 2002 ICLUBcentral Inc. – All rights reserved Step 1 - Objective Your investment objective determines your search Investment Objective Search for: Willing to take some risk Growth Unwilling to pay a “premium” Value “Blue-chip” companies Quality Preservation of capital Safety
Copyright 2002 ICLUBcentral Inc. – All rights reserved Step 2 - Screening Criteria Main Objective GrowthValue QualitySafety Secondary Objective Support (or confirm) the main objective
Copyright 2002 ICLUBcentral Inc. – All rights reserved Beginner Criteria also selects the report
Copyright 2002 ICLUBcentral Inc. – All rights reserved Growth Example EPS R2 >.95 EPS Growth > 15% Revenue Growth > 15% Projected Growth > 15% Relative Value < 1
Copyright 2002 ICLUBcentral Inc. – All rights reserved Safety Example Current Yield < 3% Dividend Growth > 10% EPS Growth > 10% EPS R2 >.9 Dividend Payout < 60%
Copyright 2002 ICLUBcentral Inc. – All rights reserved Step 3 - Which Items? For the Beginner (using the Wizard) 8 pre-defined reports 25 user set reports For the Experienced customize to suit search choose from 8 Groups and 100+ items
Copyright 2002 ICLUBcentral Inc. – All rights reserved Beginner Reports both report and criteria are selected
Copyright 2002 ICLUBcentral Inc. – All rights reserved Experienced Reports customize reports by using familiar items
Copyright 2002 ICLUBcentral Inc. – All rights reserved Step 4 – Weights (What is Important) Assign “importance weights” to individual items Establish relative ranking for selected companies User set from 0 to 5
Copyright 2002 ICLUBcentral Inc. – All rights reserved Step 5 - Sort any item in the report
Copyright 2002 ICLUBcentral Inc. – All rights reserved Step 6 – Looking at the Results Selected Companies Data Report Historical Data Graph Ranking Report –shows how and why a company was selected –shows how and why it was ranked the way it was
Copyright 2002 ICLUBcentral Inc. – All rights reserved Company Report
Copyright 2002 ICLUBcentral Inc. – All rights reserved Ranking Report shows how and why a company was selected and how and why it was ranked the way it was
Copyright 2002 ICLUBcentral Inc. – All rights reserved Export for Analysis
Copyright 2002 ICLUBcentral Inc. – All rights reserved Cautions Data Screening Criteria and Weights Follow up with confirming analysis
Copyright 2002 ICLUBcentral Inc. – All rights reserved Updating and Exporting STB Prospector Database Analyst Program NAIC Datafiles