0 order companies are companies which are standing the criteria to be in the recommended lists, today
1st order companies are companies which are NOT standing the criteria today but are “likely” to pass it next quarter
2nd order companies are companies which are NOT standing the criteria today but are “likely” to pass it in 2 quarters
And N order – same way…
The trick is to define “likely” properly:
1) Almost pass in all criterias OR
2) Pass in all criteria but fail in one .
1st order companies are companies which are NOT standing the criteria today but are “likely” to pass it next quarter
2nd order companies are companies which are NOT standing the criteria today but are “likely” to pass it in 2 quarters
And N order – same way…
The trick is to define “likely” properly:
1) Almost pass in all criterias OR
2) Pass in all criteria but fail in one .
0 order stocks are probably good investments but they appear in all the big portfolios (buffett etc) already. So they are not likely to gain a lot and could be get down if company fail to deliver as they would be out of the lists.
1st order stock are a bit more dangerous but if next quarter result would put them in the list – they would be in the big portfolios (buffett etc)
And maybe it is best to catch the 2nd order companies since the 1st order companies are already in the big portfolios… and so on…
Now the question is – what is N?
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