Screening Stocks by Turnover, Profit Growth, and Moving-Average Alignment

Summary

This stock-selection approach combines a turnover filter, growth in net profit attributable to shareholders of the parent company, and a technical condition described as moving averages spreading upward. The stated thresholds are turnover between 3% and 12% and profit growth above 20% and up to 100%. The formula also excludes ChiNext listings and describes sorting candidates by market capitalization. The article presents a separate Python sketch using financial and price data, although that example does not implement all of the stated conditions in the same way.

The author characterizes the method as a mix of fundamental and technical screening, while warning that past profit growth and price patterns may not reflect future business performance. The note gives no backtest, portfolio results, or evidence that these filters predict returns. It suggests considering further valuation or dividend measures and adapting the criteria to the intended investment horizon. Differences between the written rules, formula, and Python example mean that anyone reproducing the screen would need to specify and verify the data fields and calculations first.

Key ideas

• The screen combines a 3%–12% turnover range with parent-company net profit growth above 20% and up to 100%.
• It adds an upward ordering of several moving averages as a technical filter.
• The formula excludes ChiNext stocks, while the Python example does not fully reproduce the stated screen.
• The note provides no performance test or evidence that the selection rules predict returns.
• Additional valuation measures and a defined investment horizon could refine the screen.

Tags

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