StockCiphering.Com The Financial Ad Trader

Why Use StockCiphering?

I first got interested in the stock market in 1998, when my wife took some money we made from a garage sale and bought ORCL on October 8 of that year. That day just happened to be when the Nasdaq hit bottom at 1357.1 (see chart at right). It was also my birthday. So obviously this was a good sign. Over the next few months I saw that investment almost triple. A friend of mine had also bought AMZN in Jun1997 and sold 22 months later in Apr1999 (see chart at right) for an astounding 6150% profit! Needless to say, I was hooked on the possibilities of the stock market.

I checked out every book I could find at the library and discovered the intricacies of technical analysis and the benefits of finding growth stocks. I particularly got interested in stocks that broke out from consolidations and went on to huge gains (like AMZN did in late 1998). But I got frustrated reading various financial magazines and newspapers because none of them could point me in the direction of which stocks were setting up for breakout.

So I created gradually over the years in order to help me find big winners. Below are some of the reasons why I believe is an indispensable tool for seeking out winning stocks.

--Brad Schulz

Tighter Data Focus
There are literally thousands and thousands and thousands of stocks out there, including stocks that trade for under $1 and stocks that trade a paltry average of 300 shares a day and also megacap stocks like Microsoft and General Electric, which tend to move like dinosaurs because of their sheer size. The database only tracks about 1000 stocks total, weeding out illiquid stocks and those with ridiculously low prices. Stocks with poor long-term growth prospects are also eliminated. Only stocks with a float of less than 100million shares are included, because a high level of demand for a stock with a small supply of shares available is a powerful catalyst for huge price increases.

Seek Out Future Earnings Potential
You can find many websites out there that rank stocks based on past earnings. But what about the future? True, future earnings growth estimates are just opinions, but that earnings potential does help bolster the buying interest in a stock.

This is why our Overall Ranking takes into account not only past earnings, but also puts a big emphasis on future earnings growth in being calculated. Using this ranking, you can find some potential gems that are under everyone else's radar. A good example is TMCS, which had poor rankings on past earnings on many websites at the beginning of 2002, while gave it an Overall Ranking of 94 because of its large earnings growth estimates for the coming quarters. As the year progressed, the websites that ranked on past earnings upped their rankings with each passing quarter. But the Overall Ranking assigned by remained in the 80's and 90's during the whole year.

Avoid Future Earnings Breakdowns
Conversely, some stocks that already have high rankings at websites that rank on past earnings won't be able to maintain that ranking because there's negative growth in their future. An example is XTO, which had excellent rankings on past earnings at the beginning of 2002, while gave it an Overall Ranking of 9 because of negative growth estimates for the coming quarters. It was no surprise, then, when XTO got downgraded by other websites as the year progressed, hitting rock-bottom by the time August rolled around.'s Overall Ranking for XTO never went above 15 in all that time.

Discover the "Undiscovered"
We put all our stocks through a vigorous filtering system to find what we call Undiscoverd Growth stocks. In short, these are stocks with great future earnings growth prospects and yet are relatively undiscovered in terms of dollar volume and institutional support. One of our Cream of the Crop screens outlines Undiscovered Growth stocks that have a 1-Year Performance Ranking of 70 or above. Only about 4-5% of all the stocks in our database pass all these tests and may be a good resource for those of you coming primarily from the fundamental side in searching out stocks.

Scan Charts Quickly
On the technical side, all of's stock screen tables let you see up to 10 charts at a time (thanks to with a click of a mouse. A good chart reader can glance through those charts and find ones that look good from a Cup/Handle or Flat Base perspective very quickly. Our screens specifically tell you which stocks are setting up and consolidating in certain ways and which stocks have broken out, and you can view their charts quickly, 10 at a time, instead of stumbling upon a chart by chance that happens to show up in a financial magazine or newspaper.

Early Risers
Many websites and financial publications talk about the RS Line moving into new high ground (before a stock's price has hit new highs), but there is no process available for screening those stocks. does find those stocks and puts them in the Early Risers screen and also into the Express Checkout: Setups and Consolidations screen. These stocks are especially good prospects when the markets are hitting bottom or coming up from a bottom.

Be Ready For The Next Trading Day
Our DayWatch screen will let you know which stocks and Business Categories were the big-volume winners and losers for the day. Soon after the market closes, you will already have a good idea of which stocks may appear in your financial newspaper the next morning. Our Nasdaq Weather Report on our Home Page will also let you know whether the day was considered an accumulation day or a distribution day on the Nasdaq exchange.

Read more about how and why our screens were developed...
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