Using stock screening software, we created a simple example of a Model and how we rebalance the portfolio.

• First we filter all the publicly traded companies in the database. In this EXAMPLE, we are searching for companies that meet the following criteria:

  

  1. Companies that have reported positive Earnings Surprises for each of the past 4 quarters (i.e. companies that have consistently exceeded analyst expectations for the past 4 quarters).
  2. Companies whose Current Fiscal Year Analyst EPS Estimate is greater than the Current Fiscal Year Analyst EPS Estimate as of 4 weeks ago AND the Current Fiscal Year Analyst EPS Estimate as of 4 weeks ago is greater than the Current Fiscal Year Analyst EPS Estimate as of 8 weeks ago. This means Analysts are raising their expectations on their expected EPS forecast, a positive sign.
  3. Net Institutional Purchases (the net difference between the number of shares of company stock purchased by institutions and the number of shares sold by institutions in the latest quarter reported by each institution) are positive AND current Net Institutional Purchases are greater than Net Institutional Purchases from the prior quarter (meaning Institutions bought more stock of each company than they sold), another positive sign.
  4. Price 4 week percent change is greater than the average 4 week price percent change for each of the companies in the industry.
• The following 12 companies passed this screen (met the filtered criteria):

  TICKER		COMPANY NAME
  ACO		AMCOL International Corp
  ASYT		Asyst Technologies, Inc.
  T		AT&T Inc.
  BEN		Franklin Resources, Inc.
  GOOG		Google Inc.
  LMS		The Lamson & Sessions Co.
  LSTR		Landstar System, Inc..
  LPMA		Lipman Electronic Engineering
  MRVL		Marvell Technology Group
  PRTR		Partners Trust Financial
  PG		The Procter & Gamble Comp
  PSB		PS Business Parks, Inc.

• We buy ALL the stocks in the above list for your portfolio - ALL TRADES ARE EXECUTED COMMISSION FREE!
• A month later we filter the database again:

  

• NOW 14 COMPANIES PASSED THE SCREEN:

  TICKER		COMPANY NAME
  ACO		AMCOL International Corp
  ASEI		American Science & Engine
  T		AT&T Inc.
  CLDN		Celadon Group, Inc.
  BEN		Franklin Resources, Inc.
  GOOG		Google Inc.
  JCP		J.C. Penney Company, Inc.
  KNX		Knight Transportation
  LMS		The Lamson & Sessions Co.
  LSTR		Landstar System, Inc..
  MRVL		Marvell Technology Group
  OKS		Oneok Partners LP
  PG		The Procter & Gamble Comp
  PSB		PS Business Parks, Inc.

• We rebalance your portfolio by cross-referencing the current filtered results with last month's holdings and identify the stocks that need to be sold (i.e. stocks that do not appear in the current filtered list but are held in your portfolio from the prior month's list). Then we buy the stocks that appear on the current list (stocks that meet the current filtered criteria but are not in your portfolio).
• In this example, we Hold 9 stocks because they continue to meet the filtered criteria, we Sell the 3 stocks that failed to meet the criteria and we Buy the 5 stocks that appear on the current filtered list - ALL TRADES ARE EXECUTED COMMISSION FREE!

  HOLD		BUY		SELL
  ACO		ASEI		ASYT
  T		CLDN		LPMA
  BEN		JCP		PRTR
  GOOG		KNX
  LMS		OKS
  LSTR
  MRVL
  PG
  PSB

• After the trades are filled your portfolio mirrors the current portfolio.
• Depending on the selected Model we rebalance your portfolio approximately every 4 weeks.