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Monday, May 11, 2009

Buy Alerts Spreadsheet -- Updated

The Covered Calls Advisor uses a 'Buy Alerts' spreadsheet as an important tool in the stock selection process. The original spreadsheet was introduced in a prior post on this blog: (link).

Some aspects of this spreadsheet have been recently updated. Two of the most significant modifications are:
(1) More emphasis on factors related to the cash flow statement are now included. This provides a more comprehensive view of a company's financial position and performance trend; and
(2) This spreadsheet is a multi-factor model containing eleven factors. Now, each rating factors is weighted in accordance with this advisor's perception as to its relative importance in the overall analysis.
Excellent research presented in Richard Tortoriello's recent book "Quantitative Strategies for Achieving Alpha" provided the impetus for some of the modifications included in this updated model.

Below is a sample of the updated Buy Alerts spreadsheet which is used as a preliminary analysis of any company that is under consideration for possible investment (Note: Click on 'Full-Screen View' to view entire spreadsheet):

Any company with a Total Points score greater than 20.0 becomes a viable candidate for further analysis as a possible investment.

To date, the Buy Alerts spreadsheet has been a very useful screening method. Hopefully, this updated spreadsheet will be a further improvement for the Covered Calls Advisor's stock selection methodology; and you are certainly welcome to incorporate this approach into your own process. Any comments or questions regarding this article are also welcomed.

Regards and Godspeed,


  1. Looks like a very useful spreadsheet, but how/where do you get all the information to fill it in? It would be much more useful if the the data could be somehow automatically filled in.

  2. The data is now manually captured from the current and historical financial statements via Would love to be able to have some or all data imported automatically, but would need someone savvy with financial data feeds to assist me with that aspect.