Investor’s Business Daily does a great job giving individual investors good metrics by which to follow stocks. One example is their Accumulation/ Distribution Rating System. An ‘A+’ rating suggests that a stock is being accumulated by institutions while a rating of a ‘D’ suggests institutional selling. Here is IBD’s definition:

“The Accumulation/Distribution Rating tracks the relative degree of institutional buying (accumulation) and selling (distribution) in a particular stock over the last 13 weeks, where ‘A’ equals heavy buying and ‘E’ equals heavy selling.” Read a full explanation at IBD.

Yahoo uses this IBD data in a helpful, recent article called, “Beat the Market“. The article had the following list of 10 Highest -Rated Stocks Under 10: (data from March 13, 2006)

1. CBIZ (CBIZ) – IBD Stock Checkup
   Acc/Dis Rating: A+. In February, the provider of outsourced business services announced plans to repurchase up to 5 million shares. More.
2. CyberSource (CYBS) – IBD Stock Checkup
   Acc/Dis Rating: A+. Last week, the seller of electronic payment and risk management products acquired BidPay.com from First Data for $1.8 million in cash. More.
3. Investools (IED) – IBD Stock Checkup
   Acc/Dis Rating: A+. Kaufman Bros. recently initiated coverage of the investor-education firm with a “Buy” rating. More.
4. iMergent (IIG) – IBD Stock Checkup
   Acc/Dis Rating: A+. The provider of e-commerce solutions has a 3-year sales growth rate of 73%. More.
5. Sirenza Microdevices (SMDI) – IBD Stock Checkup
   Acc/Dis Rating: A+. Its radio frequency components are used in the commercial communication and aerospace/defense market. The company recently raised first-quarter earnings guidance. More.
6. ADAM (ADAM) – IBD Stock Checkup
   Acc/Dis Rating: A. The provider of health information products is scheduled to report fourth-quarter earnings on March 14, before the open. More.
7. Finisar (FNSR) – IBD Stock Checkup
   Acc/Dis Rating: A. The fiber-optic network equipment maker hit a new high last week after Jeffries & Co. initiated coverage with a “Buy” rating. More.
8. Merix (MERX) – IBD Stock Checkup
   Acc/Dis Rating: A. The maker of printed circuit boards recently had an Attractiveness Rating of 79 from IBD Stock Checkup, ranking it 4th out of 28 stocks in IBD’s Electronics-Contract Mfg group. More.
9. Pacific Internet (PCNTF) – IBD Stock Checkup
   Acc/Dis Rating: A. The Singapore-based Internet service communications provider was recently awarded a contract to provide voice and data services to an Australian travel firm. More.
10. Answerthink (ANSR) – IBD Stock Checkup
    Acc/Dis Rating: A-. The business and technology consulting firm has an Overall Rating of 80 from IBD Stock Checkup, ranking it 20th out of 78 stocks in the Computer-Tech Services group. More.

Use Trade-Ideas to show you how to make sure you catch the move in all of these stocks. Here’s how:

The Strategy: IBD’s Top Ten Under Ten

Step 1) Create a custom symbol list in Trade-Ideas called IBD’s Top 10 Under 10. Video Demo How To here. Help section here.

Step 2) Set up an appropriate strategy to watch this group of 10 stocks – for example: IBD’s Top Ten Under Ten

How It’s Modeled:
Note: Remember to create the symbol list in Step 1 with the $10 stocks mentioned above or regularly in IBD or Yahoo (this is your de facto filter); otherwise, you will find yourself watching EVERYTHING under $10. As the list of 10 under $10 updates or you decide to model other suggested lists, modify your symbol list accordingly and name the alert window so you keep track of what’s being watched.

The set-up includes these additional 2 filtering conditions:

• Max price is set at $10
• Minimum Daily Average Volume is set at 500,000 shares per day

The alerts we select as triggers within this filtered universe are all meant to capture significant price movement, strong sudden volume surges, and identifiable chart patterns.

Who Benefits:
A lot of people read IBD – not everyone uses it with Trade-Ideas. What we are saying is, “Don’t just get there, be there first!”

Footnotes:

• IBD’s website here.
• Yahoo’s Beat the Market article here.
• Configure the strategy mentioned in this post here.
• Link to other Strategy Sessions here.
• Remember that these set-ups are sketches meant to give you an idea how to model your own trading plan. Use this ‘as is’ or modify it to your own liking as many others do. Know, however, that Trade-Ideas.com and all individuals affiliated with this site assume no responsibilities for your trading and investment results. The indicators, alerts and all other features are for research purposes only and should not be construed as investment advice.

• June Seminar Footnote – To gain a full understanding of how this strategy and others can help you in your trading plan, we suggest you attend our training seminar in June. There we will focus on all the advanced aspects of our software needed to give you an edge against larger, more capitalized participants. We just opened the sign up page so that you can officially pay for and reserve your spot (conference limited to 100 existing subscribers). https://trade-ideas.54solutions.com/Seminar/