Click Here to read Marc Gerstein’s detailed white paper, “Evaluation of the Chaikin Power Gauge Stock Rating System,” updated on 2/22/13.
“The Chaikin Power Gauge rating does an excellent job identifying stocks that have the potential for strong intermediate-term price performance for one very simple reason: because it was designed to do just that. Believe it or not, that’s unusual!
The Power Gauge model does not pre-judge how a stock must demonstrate merit. The model reflects the way the stock market really is: a tremendously varied place where such polar opposites as Warren Buffett and Jim Cramer can both succeed.
A well-created model is one that uses criteria that are, in fact, related to reasons why stocks perform well. The Chaikin Power Gauge rating uses 20 factors spread across four broad categories: Financial Metrics, Earnings Performance, Price/Volume Activity and Expert Opinions, that reflect the variety of ways a stock can establish its investment potential.
The bottom line: The Chaikin Power Gauge model works because it reflects the way the market really is by incorporating the full range of criteria we can use to evaluate stocks. Put another way, it works because it should work.”
Marc Gerstein, March 11, 2011
About Marc Gerstein
Marc Gerstein is an independent consultant specializing in rules-based equity investment strategies.
Mr. Gerstein spent twenty years at Value Line Investment Survey, as manager of its high-yield corporate bond fund, and as Assistant Research Director. He was Director of Investment Research at Reuters.com. He is presently editor of Forbes Low Priced Stock Report.
Marc has been working with Portfolio123.com, a back-testing and stock screening platform for investors. Mr. Gerstein has authored two books on stock screening: Screening The Market (Wiley, 2002) and The Value Connection (Wiley, 2003).