I still don't have the capital to build a portfolio where I can test different screens myself, but these are the parameters that William O'neill uses per his book "the successful investor" that I am currently reading.

1. EPS in the latest quarter should be up at least 25% versus the same quarter a year ago, preferably much more.
2. Earnings growth should be accelerating at some point in recent quarters compared with earlier rates of change.
3.Annual earnings for the last three years should be increasing at a rate of 25 percent per year or more
4. Sales should be up 25 percent or more in one or more recent quarters, or at least accelerating in their percentage change for the last three quarters.
5. The after-tax profit margin in the most recent quarter should be either at or at least close to a new high and among the very best in the company's industry.
6. return on equity should be 15-17% or higher
7. technologty companies should show cash flow earnings per share greater than regular earnings.
8.In normal bull markets, both the earnings per share and relative strength ratings should be 90 or higher.
9. Not relevant if not reading IBD
10. The stock should have institutional sponsors, such as mutual funds, banks, and insurance companies, and the number of mutual fund sponsors should be increasing quarter by quarter for several quarters.
11. its a plus if a company is buying back 5-10% of its stock
12. Its vital in any stock that you really understand the company.

This is what he does. I'm a little skeptical about this due to the recent shakeup in the market, so I don't think many stocks at all would fit these parameters. I think these are meant for a more stable market.


And as I side note, this is only one very tiny part of the book, he concentrates a lot on technicals as well. But this seems to be what his study of the stock market over the past 100 years has shown to be ultra successful.

You definitely need to be patient and disciplined and put a lot of research work in to find a stock that matches this though.

I'll give it a shot when I have more money to throw around.

I'm still exclusively in ETF's untill my DRIP base is done (hopefully done by end of 2010). Then I'll move on to the more risky stuff and individual securities.  Then in a few years I'll hopefully have the cash to move into options.