A Small-Cap Stock Screen Using Fund Flows and Revenue Growth

Summary

The post proposes a Chinese equity screen that ranks stocks by market capital inflow, then selects companies below a stated market-cap ceiling that are not loss-making and have higher revenue in 2021 than in 2018. The written selection logic specifies revenue growth above 1.1 times, while the post headline uses a threshold above 1, so the exact intended cutoff is inconsistent. It also suggests improving the screen with profitability, leverage, valuation, and longer-term indicators.

The document gives no backtest, holdings, or performance evidence. It flags small-company market and liquidity risks, as well as the possibility that a three-year revenue comparison may miss longer-term business trends or short-term volatility. The later “final” logic adds filters beyond the initial screen, but the included code is only a rough reference and does not implement all of the described criteria. The approach should therefore be treated as a screening idea that needs clear definitions, reliable data, and historical testing before use.

Key ideas

• The proposed screen ranks stocks by market inflows before applying fundamental filters.
• It targets companies below a stated market-cap limit, with no losses and revenue growth between the cited years.
• The written growth threshold differs from the headline threshold, leaving the precise screen ambiguous.
• Suggested additions include profitability, debt, and valuation measures.
• The post presents no backtest results and identifies liquidity and short-term business fluctuations as risks.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.