CDNX Stocks doing Financings at Low Prices

This filter is one of the most complex in Chartsmart and we will be very suprised if you find it anywhere else. It shows how ChartSmart is designed to really help you with your detective work and if you invest in the CDNX you should take a good look at this filter. It basically attempts to find stocks where the price is at relative lows but there are also financings occuring. There is a certain amount of logic to the fact that anyone doing financings when stock is cheap are going to be parties closely related to the company possibly insiders. For example, if a stock has drifted down to $.15 from $1.00 and you see a 1,000,000 share private placement done at $.10 you might expect this to be insiders or parties related to the company. Note that we have also set other criteria which are that the price is trading within 25% of its year low and the issued capital is less that 7 million shares (only Cdn stocks). The reason why the price is set to near it's 52 week low is because in most cases stock can only be issued at low prices when the stock is trading at prices near the financing price.

Now when you scroll through the DAILY charts you will see the red news bars at the bottom of the chart indicating a private placement news release was done in the last 3 months. The bar is further extended for your easy viewing. Note that red is assigned to headline keywords with private placements but you can change the colors. For each stock, as you scroll, you may wish to click on the red bar to get the news release and find the nature of the private placement or click on the SMRY button to get the complete news. You can determine what the colors of the news bars mean by clicking on the MAINTENANCE option at the top of the chart menu, then on SET COLOR OF CDN NEWS BARS. As you can see we have set OPTIONS to yellow. You can also apply this filter to the keyword OPTIONS in the news headline filters. Also note that you will notice these stocks are not usually trading much volume so for day trades they are not desireable but for longer term holds they can be very interesting.

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How to Screen Out these Stocks with ChartSmart

This filter set requires that you do an extra step before clicking on the RUN FILTERED LIST BUTTON. It will not function properly if you do not do as follows. In order to do this filter we must first filter through the news release headlines and scan for the string PRIVATE PLACE. Start by clicking on the CRITERIA TO BE USED tab. Note there is a criteria called "news release filters - cdn". If you click on this it will display the option under the SPECIAL tab with the same name. Now click on the EDIT button to display the "news filtering menu". You will note that there are 2 tabs on the page. One is for HEADLINE filters and the other for NEWS RELEASE fillters. The headline option just allows you to scan the headline. The News Release filters allow you to complete scans of the news release content.

In this example you want the NEWS HEADLINES which is the leftmost tab and the default. Now in the upper right box click on the arrow and select PRIVATE PLACE. Next you want to specify a date range. In this example specify FROM to be about 3 months ago. In the to box specify todays date or a time ahead of it. Next click on RUN NEWS HEADLINE FILTER LIST now. This will take a while as it scans the news headlines. When complete go back to your your filter set and click on RUN FILTERED LIST. Thats it. You can then scroll through the charts.

Watch the video of this strategy.

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