Small-Cap Stock Screen Using Recent Limit-Ups, Range, and Profitability

Summary

This stock-selection approach combines a market-capitalization ceiling, positive profitability, recent limit-up activity, and a price-range condition. The stated idea is to find relatively small companies showing strong recent price action while excluding loss-making firms. The article also suggests checking company reports, research, industry conditions, and policy factors before accepting screen results. It provides example formulas and a Python outline, but no backtest or evidence of predictive performance.

The document acknowledges that small or growing companies may carry financial risk, that quant screens can be unstable, and that historical price movement does not capture longer-term business prospects. Its written conditions and sample formulas do not fully agree: for example, the stated count of recent limit-ups differs from the formula description, and the sample code uses different proxies. These discrepancies and the market-specific limit-up rules require verification before implementation.

Key ideas

• The screen combines smaller market capitalization and positive profitability with recent limit-up activity.
• It uses a price-range condition to add a measure of recent movement.
• The article recommends reviewing financial reports and broader market context alongside the screen.
• The provided formula and code examples do not consistently match the stated selection rules.
• No backtest or 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.