Tiny Titans screen using the Portfolio123 Stock ScreenerThe data to create a Tiny Titans screen in the Portfolio123 Stock Screener is available. Several features of this online screener allow you to go beyond the basic screen. You must be registered for either the free version or the fee-based version of the screener. After you login and navigate to the screener, you get a blank screen grid and must enter criteria unique to the Tiny Titans from the categories provided. Expand the reference section to access the criteria for the basic screen. Once you select Stock Factor, the criteria are in the following categories:
Notice that as you highlight criteria in the factor/function list, a short description is displayed. A more robust description is available. The resulting screen (shown below) can be saved by name (but only one screen can be saved by name in the free version).
Implementing the Tiny Titans screen with Portfolio123The Tiny Titans strategy looks for market cap (inflation adjusted to 2004) between US $25 million and US $250 million. This is shown as 2 lines on the screen but can be accomplished in one line if desired. The market cap is in $US millions so use 25 and 250 for the values. Price to Sales (P/S) should be less than one by definition so use 1.0 as the value. The screen shown uses the industry relative variation of P/S. Average Daily Trading Volume is in millions of shares so choose 0.1 for a minimum of 100,000 shares per day. The example also insists on a minimum of US $500 thousand per day so the average trading volume is multiplied by price and the result must be less than 0.5. This illustrates the formula building capability of the screener. Excluding OTC stocks is as easy as choosing the corresponding "No OTC Exchanges" universe from the selections offered under settings. Since this is a micro cap screen, we chose the Russell 2000 as the appropriate benchmark. This is not part of the Tiny Titans screen but is a nice touch if you want to compare performance against a benchmark. Finally, the Tiny Titans strategy looks for the 25 stocks with the best 52 week price appreciation. Set the maximum number of stocks to 25 on the settings and, after selecting "Quick Rank" as the ranking method, select 52 week % price change as the ranking criteria. Higher is better. NOTE: The fee based version gives you access to the proprietary Portfolio123 ranking systems. At least one of these systems will normally provide superior performance over Quick Rank ranking. If you are serious about performance, the fee-based system is worth the price just for access to the ranking systems. Save the screen by name using Save As. Running the screenUse "Run" or go to the Results tab to run the Tiny Titans screen and identify the 25 passing companies. You can scroll through the 25 results and examine their fundamentals and charts. Even in the free version, you can use the stock feature to examine the results and view their ranking value in the various proprietary ranking systems. Variations and Back-testingTo choose an industry relative P/S instead of an absolute value is simple. Select the Industry Factor type and then the Valuation Ratio category. Replace the "1" in the P/S equation with the Industry P/S for the trailing 12 months (TTM) as in the sample above. Both the free version and the fee-based version of the stock screener allow backtesting. The free version is limited to one year but does give you a feel for the power of backtesting to confirm or eliminate some of your ideas. If you sign up for the 30 day free trial of the fee-based version (45 days if you sign up from here) you can run simulations, manage portfolios, and backtest from March 31, 2001. Return from Tiny Titans screen to the Tiny Titans Stock Screeners
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