Screening Stocks by Turnover, Float Size, and Large Order Activity

Summary

This Chinese equity screen selects stocks with turnover between 3% and 12%, a circulating share base no larger than 5.5 billion shares, and positive or high-ranking large order net activity. The stated rationale is to find stocks with moderate trading activity, a relatively small float, and signs of investor interest. The article’s example criteria also mention median trading amount, and its proposed refinements add profitability growth and main fund inflows.

The method is presented as an initial filter, not a complete valuation process. The author points out that it omits company fundamentals and that large order net activity may not reliably reveal institutional intent. The article recommends considering financial condition, growth, industry prospects, and capital flow measures, but provides no backtest or evidence that these additions improve results. A small float or elevated turnover can have risks that the screen does not quantify.

Key ideas

• The screen combines a 3% to 12% turnover range with a circulating share count cap of 5.5 billion.
• It ranks or filters stocks using large order net activity.
• Suggested refinements include profitability growth and measures of main fund inflows.
• The article warns that the screen omits fundamentals and that order flow may misrepresent institutional intent.
• No performance evidence is supplied.

Tags

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