The JXM Database
The sole focus of the JXM Database is to provide an accurate, nonbiased tool that can be used to find stocks that offer the greatest potential for superior returns. The database is a Quant-based system that weighs common financial and technical ratios against a stock’s direct, industry, and sector competitors. This precise evaluation process utilizes multiple levels and categories to form a proprietary ranking system that has proven its worth through years of testing and internal analysis. The JXM system outperforms the “experts” and provides outstanding returns in any market environment.
The JXM database is formed by three primary screeners; an initial Web analysis, the JXM 75, and the JXM 24. The Initial screener considers a large number of companies and weeds out those with the best potential. The next two steps utilize a 0-100% scoring system to whittle these companies down to 10 worthy prospects.
The following defines these screeners:
- The Website Screener – A website screener that canvases entire sectors and/ or industries to identify up to 75 select companies to begin the evaluation process.
- The JXM 75 – The assessment of these 75 companies begins by utilizing a few core JXM levels to find 24 companies that are not only financially and technically sound but are also supported by the Gurus.
- The JXM 24 – The 24 companies that survive the initial filtration process are then run through the JXM 7, levels consisting of Fundamentals, Technical, Valuation, Guru, Rules and Growth (x2). The top 10 companies that survive offer strong potential and are further evaluated with the JXM Stock Report.
Level 1 – JXM Fundamentals
- The first level, classified as JXM Fundamentals, utilizes 42 ratios pulled largely from a stock’s annual report. This classic analysis focuses primarily on profitability, growth, valuation, and management effectiveness. The ratios are weighed based on importance and organized into 6 scores; Basic, Average, Target, Category, Industry, and Sector.
- The Basic Score compares the ratios of each stock directly against the 24 in the pool.
- The Average Score compares the each company against a predetermined average.
- The Target Score focuses on a JXM set range or value.
- The Category Score is based on a select JXM formula that pools related ratios.
- The Industry Score compares each stock ratio against its industry average.
- The Sector Score compares each stock ratio against the overall sector average.
Level 2 – Technical
The second level of the JXM filtration process quantifies technical trading. This extremely unique level analyzes 60 indicators for each company, following a proven method that follows price first. JXM Technical awards stocks in uptrends while punishing those in a downtrend, reducing risk while also offering the possibility for short positions. The major importance for the technical level is that it identifies momentum stocks through price performance, assuring a healthy stock and minimizing risk.
Level 3 – Valuation
JXM Valuation focuses solely on the potential price growth a company, leveraging analyst recommendations with proven methods such as Margin of Safety and Intrinsic value. Level 3 incorporates these methods in an algorithm that scans the market for companies improperly valued, identify both buying and selling opportunities.
Level 4 – Guru
Although analysts have their limits, JXM Level 4 follows some of the best Gurus in the industry, duplicates the way they look at stocks, and forms a calculated score that takes advantage of their most effective models.
Level 5 – Rules
JXM Rules is a completely unique evaluation tool that hand-picks ratios from all available metrics that measure price expectations versus target ranges and market importance. The Rules employs nearly 40 of the most predictive ratios from the JXM database and condenses their results into one score with a proven history of outperforming the market.
Level 6 – Classic Growth
Level 6 is where JXM digs deeply into the most important word in the stock market – Growth. If a company is not growing, neither will its stock price. This level focuses primarily on metrics such as Revenue, EBITDA and FCF, evaluating both quarterly and yearly data dating back as far as 5-10 years.
Level 7 – New Growth
JXM Level 7 is a relatively new addition to the JXM portfolio, taking Level 6 to new heights. This level compares the current Level 6 score versus the Level 6 score of the previous quarter, assuring that growth has been continual.
We analyze about 5580 ratios with 1042 actual calculations during the JXM 24 run which is the last phase of the filtration process