Screening Recent IPOs by Turnover and Prior-Day Activity

Summary

This article describes an equity screen for stocks with turnover between 3% and 12%, an IPO year of 2021, and prior-day turnover above 8%. The stated rationale is to combine a bounded turnover range with a high recent reading as a rough filter for active trading. It includes formula and Python examples intended to identify matching stocks, but does not provide a backtest, selected-stock examples, or evidence of returns.

The article cautions that the screen omits other fundamental and technical information, may be affected by market conditions and institutional flows, and relies on historical data that may not predict future movement. It suggests considering valuation, leverage, and technical indicators, as well as refining the thresholds. Those additions are proposals rather than tested improvements. The strategy is therefore best understood as a basic activity-based selection rule, with no stated entry, exit, or risk-management method.

Key ideas

• The screen combines a 3% to 12% turnover band with a 2021 listing year.
• It adds a prior-day turnover threshold above 8% to capture recent activity.
• The article provides formula and Python references but no performance evaluation.
• It notes omissions including fundamentals, technical context, and market risk.
• Suggested additional filters are not supported by reported tests.

Tags

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