Amateur Investor Index (AII)
The Amateur Investor Index factors in 13 different parameters to derive the final index value. A list of these factors is shown below.
Stocks must exhibit an increase in Sales of 15% or more from the previous years quarter.
Earnings Growth must generally increase 50% or more from the previous years quarter.
Stocks must have Net Profit Margins preferably >5% and show an increasing trend from the previous quarter.
Stocks should generally have a Positive Cash Flow with preferably a trend for an increasing Cash Flow.
Stocks must be generally at or above their 200 Day Exponential Moving Average.
In addition the (AII) factors in the Earnings and Relative Strengths, Group Strength, the number of Quarters with Sales, Earnings and Net Profit Margin acceleration.
Also the Accumulation/Distribution and amount of Institutional and Insider Ownership are factored in as well.
To see examples of two stocks that exhibited high AAI values click on the links below.