Stock Charting
Stock Screening
Stock Research
Stock Charting
Stock Screening
Stock Research
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Stock splits are almost always done when a stock has gone up to a level where the company decides that the price has become so high it is beyond what many investors are familiar with as they prefer to trade less expensive stocks. On US exchanges it appears that when a stock gets over around $100 per share stock splits are more common. The theory is that after a stock split the stock becomes tradable to a larger group of investors. To many traders stock splits are a positive signal that the company's price is expected to go higher although this is only theory. We maintain Stock Splits, Consolidations, and Name Changes in ChartSmart and upload them to you monthly. As a result you can do filters for any period to screen out stocks that have had stock splits, name changes, or consolidations. In the current example we have filtered out all stocks in the database that have had splits in the last 3 months. In addition, we have specified that the change in price in the last 50 days (about 3 months) is greater than zero. This ensures that the stocks will have gone up after their split possibly indicating that the screened out stocks show relatively strong price performance. In the end, this filter screens out all stocks that had splits but have also tended to maintain an upward trend after the split.
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How to Screen Out these Stocks with ChartSmart
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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. Start by clicking on the CRITERIA TO BE USED tab and you will see a criteria in the white box called NAME CHANGE FILTERS. If you click on this you will find it under the SPECIAL tab and it will be checked off. Click on the EDIT box beside the checkbox to display the NAME CHANGES FILTERING MENU. You must do a preliminary screen in this menu before you do RUN FILTERED LIST. To do the preliminary screen first be sure you have checked only the STOCK SPLIT option. Next go down to the dates and in the BEFORE DATE box put a date that is on the current day or greater. Then in the AFTER DATE box put in the date it was approximately 3 months ago. When you are done click on RUN FILTER and you will get your preliminary list of stocks which is those with STOCK SPLITS 3 months ago. Next, in order to combine this group of stocks with your other criteria click on the RUN FILTERED LIST BUTTON. The time for these filters can take a little longer to run. Note that not only did we specify stock splits but we also specified that the change in stock price in the last 50 days (about 3 months) since the stock split has been up.
Watch the video of this strategy.