Screening Small, Profitable Stocks with Revenue Growth and MACD

Summary

The document describes a Chinese equity screen combining positive MACD, revenue growth, a market-cap ceiling of 10 billion yuan, and positive net profit. Its intended rationale is to pair upward price momentum with business growth and current profitability. The article also suggests considering valuation, financial statements, industry conditions, and earnings quality, since the selected criteria alone do not establish that a company is attractive or resilient.

It provides illustrative platform formulas and a sample trading script with position exits and purchases, but the implementation is internally inconsistent: the prose specifies revenue in 2021 relative to 2018, while the code uses shifted revenue observations and does not clearly align that comparison. No backtest results or performance evidence are reported. The screen is therefore a candidate-selection idea rather than a validated strategy; its annual data timing, indicator definition, liquidity, portfolio sizing, and execution assumptions would need careful review.

Key ideas

• The screen combines positive MACD with revenue growth, positive net profit, and a market-cap limit.
• The stated revenue condition compares 2021 revenue with 2018 revenue, though the sample code does not clearly implement that exact comparison.
• The article recommends adding valuation, broader financial measures, and industry context.
• No empirical performance results are provided, so the screen's effectiveness is unproven.

Tags

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