FIVE KEY ELEMENTS OF SEPA :
1.Tren, all superperformance phases occur when the stock price is located
in a confirmed uptrend.
2. Fundamental. Most superperformance phases are controlled by increase
income, income and margins (profits).
3. Catalyst. Every stock that experiences a high price increase has a catalyst
underlying these increases.
4. Entry points. Most superperformance stocks at least give you one
opportunity and sometimes more than one opportunity to be able to take a position on
the stock is at a low risk point.
5. The exit point, you must set a stop-loss point to force you out of
wrong position to protect your capital. Instead, at some point, your stock
must be sold to realize profits to maintain the profits that you have
obtain it.
The process of sorting shares by SEPA can be summarized as follows:
1. To be a potential SEPA candidate, you must meet the Trend criteria
My version template (see Chapter 5).
2. Shares that meet the Trend Template criteria will be filtered through various
kinds of filters based on income, sales, margin growth,
relative Generally 95 percent of all shares that meet Trend qualifications
The template failed to escape this filtering.
3. Shares that have successfully escaped screening will be examined to search
in common with the Leadership Profile to determine whether they are in line with
specific fundamental and technical factors shown by the historical model of
superperformer in the past.
4. The final stage is a manual review, examined individually and given a score
according to the process of ranking "relative prioritizing" which to consider
characteristics as follows:
• Reported income and sales levels
• Movement history both up and down that far exceeds analyst estimates
sales and earnings (sales and earnings surprise)
• Earning per share (EPS) growth and acceleration
• Growth and acceleration of income
• Guidelines regarding estimated future income (Company-issued guidance)
• Revision of analysts' forecasts of earnings forecasts
• Profit margin
• Market and industry positions
• Potential catalysts (new products or services or industrial or corporate development
specifically)
• Performance compared to other shares in the same sector
• Analysis of trading volume and prices
• Liquidity risk
The SEPA ranking process is focused on identifying the potential of things as
following:
1. Future sales & earnings surprises and revisions to estimated positive performance
2. Volume support from institutional investors (significant buying / demand pressure)
3. Rapid price increases based on an imbalance between demand and
supply (small selling pressure and large buying pressure)
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| Trade Like A Stock Market Wizard |
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