Up to three companies listed in the same country are mentioned under the heading alternatives in the market. To qualify as an alternative, a company must meet the following criteria: Rating fundamental / technical with at least 3 stars; a historical risk moderate. (ou: "; a moderate historical risk.")
Whenever possible, companies with comparably sized market capitalizations and recently improved Rating will be selected.

Up to three companies active in the same sector are mentioned under the heading alternatives in the sector . To qualify as an alternative, a company must meet the following criteria: Rating fundamental / technical with at least 3 stars; a historical risk moderate. (ou: "; a moderate historical risk.")
Whenever possible, companies with comparably sized market capitalizations and recently improved Rating will be selected.

To determine the Bad News Factor we analyze a stock's declines in rising markets. In this purely objective analysis, the actual reasons for a stock's behavior are not important. If a stock price falls while its relative index goes up, it can be assumed that the stock's performance has been affected by bad news - hence the name, "Bad News Factor".

How to interpret the Bad News Factor:
Simply take the percentage difference (in basis points) between the rise of the index and the decline of the stock. For example, if a stock drops 2%, while during the same time period its reference index goes up 1%, the percentage difference is 3, or 300 basis points. Therefore, our Bad News Factor will be 300.

In bi-weekly intervals that correspond to our updates, we track a stock's movement over the course of a standard sliding 52-week period. Each time the stock goes down while its reference index goes up, the percentage difference is calculated, absorbed into the yearly average and expressed in basis points as the Bad News Factor.

As stocks rarely react in the same way the number used to calculate the average may differ from one stock to the next.

For example, the number 114 would mean that during the last 12 months, each time UBS went down when the SMI went up, the average of the differences measured between the respective performances was 1.14%.

Things to remember:

• The higher the Bad News Factor, the more a stock is sensitive to bad news.
• The smaller the Bad News Factor, the less the stock is sensitive to bad news, or said differently, the less investors seem to be concerned by the impact of bad news on the stock.

To determine the Bear Market Factor we analyze the relationship between a stock's price movements and declining markets, hence the name, "Bear Market Factor". Ultimately then, the question that concerns us is: on the average, when the market declines, how does a stock tend to react?

How to interpret the Bear Market Factor:
Simply take the percentage difference (in basis points) between the decline of the reference index and the performance of the stock. For example, if a stock drops 3%, while during the same time period its reference index goes down 1%, the percentage difference is 2, or 200 basis points. Therefore, our Bear Market Factor will be 200. If the decline of the stock is less than that of the index, or if the stock goes up, our indicator will be expressed in a negative number. A negative number indicates that the stock tends to show solid resistance to drops in the market.

Understanding Correlation:
The closer a stock's Bear Market Factor is to zero (on either the positive or negative side), the more it will be inclined to mirror its relative index's behavior when the index goes down.

In bi-weekly intervals that correspond to our updates, we track an index's movement over the course of a standard sliding 52-week period. Each time the index goes down we calculate the percentage difference between it and each one of its individual stocks. This difference is then absorbed into the yearly average and expressed in basis points as the Bear Market Factor.

Things to remember:

• The higher the Bear Market Factor, the more a stock is likely to drop when its relative index drops.
• A Bear Market Factor that is strongly negative means the stock is more likely to resist losses in a declining market.

Beta measures the sensitivity of a stock relative to market movements. By definition, the market has a Beta of 1.0. To be consistent with our other indicators, the number we use to express Beta is 100, which is equivalent to the number 1.0. Stocks with a Beta greater than 100 tend to amplify the overall movements of the market. Stocks with a Beta between 0 and 100 tend to move in the same direction as the market, but not as far. The market can be considered as the portfolio of all stocks, so the "average stock" has a Beta of 100.

Correlation is a measure of the extent to which two random variables track one another.
The correlation of two random variables can range from -1 to 1.

Our system measures the correlation of a stock relative to its national index.
When a stock is positively correlated to its national index, it tends to appreciate or depreciate at the same time as its index. When a stock is negatively correlated to its national index, it tends to fall when its national index rises, and vice versa.

Example: on October 16, 2002, UBS has a correlation of 0.92.
This means that UBS is highly correlated to the SMI and tends to follow 92% of its up and down movements.

The symbol [] implies that compared with their earnings revisions of seven weeks ago, the analysts have now raised their estimates (7wk EPS Rev; > 1%); the symbol [] indicates that compared with their earnings revisions of seven weeks ago, the analysts have now lowered their estimates (7wk EPS Rev < -1%).

When the earnings revisions (7wk EPS Rev) fall between +1% and -1%, the trend is considered to be neutral [].
The symbol [] indicates that the revisions previous to the neutral situation were positive.
The symbol [] indicates that the revisions previous to the neutral situation were negative.

It is the basis of our Valuation Rating. This is the estimated growth of future earnings (LT Growth) plus dividend in %, divided by the estimated future PE ratio (Long Term P/E).

Our G/PE Ratio measure is an index figure that compares firms on whether their stock is relatively "expensive" or "inexpensive" according to their potential earnings growth. We focus our attention on G/PE Ratio measures generally between 0.9 and 1.6, as this range of the index is most likely to include firms that will outperform their peers. A G/PE Ratio measure below 0.9 indicates that investors must pay a premium for the estimated growth potential; thus, the stock is relatively risky.

The 4,500 stocks in theScreener.com's database are divided into 18 internationally recognized standard industry groups.

AUT	Automobiles	HEA	Health Care
BAN	Banks	IND	Industrial
BAS	Basic Materials	INS	Insurance
CHE	Chemicals	MED	Media
CON	Construction	NCY	Non Cyclical Consumer
CYC	Cyclical Consumer	RET	Retail
ENE	Energy	TEC	Technology
FSV	Financial Diversified	TEL	Telecom
FOB	Food & Beverage	UTI	Utilities

In this easy-to-use rating system, stars are earned for each element specified below:

Earnings Rev Trend	[]	=
Valuation Rating	[], [], []	=
MT Tech Trend	[]	=
4 week Relative Performance	> 1%	=

Therefore, a stock can earn a maximum of four stars. The lowest rating a stock can have is no stars.

Note
For each category, once a stock has earned its star it will keep it until:

Earnings Rev Trend	The arrow turns red []
Valuation Rating	The arrow turns red [] or []
MT Tech Trend	The arrow turns red []
4 week Relative Performance	Drops below -1% (< -1%).

This is the estimated annual growth rate of future earnings, normally projected over the next two to three years, and expressed as a percentage.

Our Long Term Growth measure is averaged over at least three different estimates obtained from banks, brokers, or analysts. A figure of 18 means that for the next two to three years, the growth in company earnings is evaluated at an average of 18% per year.

Caution: Be skeptical of high long-term growth projections that differ greatly from growth rates of associated national market indexes or industry groups. These can often result from very low earnings for the most recent few years, thereby making a firm's projected earnings growth appear very strong by comparison with the lean years. To verify this information the aggregate analysis and world indexes functions can be very helpful.

It is the PE ratio calculated on the basis of estimates of long-term earnings.

This number is calculated by multiplying a firm's share price by the number of outstanding shares.

In order to offer a little more security in the selection of stocks, we have added a technical rating that we call a "Trend Follower".

This is by no means a tool for detecting reversals in tendencies, but is simply a measure of the persistence of a given tendency.

The column MT Tech Trend indicates the current tendency, positive [] or negative [], and the column Tech Reverse indicates to which price this tendency is valid.

When a price falls between 1.75% above or below the Tech Reverse, the MT Tech Trend is considered neutral []. Once the price breaks out of the +1.75% neutral zone, the MT Tech Trend will change to positive or negative depending on the movement.

The symbol [] indicates that the MT Tech Trend previous to the neutral situation was positive.
The symbol [] indicates that the MT Tech Trend previous to the neutral situation was negative.

The MT Tech Trend can be thought of this way: if it is positive it indicates that the market currently "likes" (or, is buying) the stock. If it is negative it indicates that the market currently "does not like" (or, is selling) the stock.

This is the price of a stock at the time of the latest update, and the currency that it is traded in.

Risk zones are determined by measuring the Bear Market Factor and the Bad News Factor against the world reference. A stock will appear on the risk map as a single point created by plotting its Bear Market Factor on the Y axis and its Bad News Factor on the X axis.

There are three types of risk zones:

• A low-risk zone is the area where the points are plotted on coordinates lower than the average point of the world reference.
• A medium-risk zone is the area where the points are plotted on coordinates higher than the average point of the world reference, but lower than the point whose coordinates are calculated by adding one standard deviation in both directions.
• A high-risk zone is the area where the points are plotted on coordinates higher than the point whose coordinates are calculated by adding one standard deviation in both directions to the average point of the world reference.

This is the price at which we project the momentum to reverse. When a stock's price crosses over its technical reversal point, it can be an early signal for a potential buy or sell.

Our Valuation Rating indicates if a stock is selling at a relative premium or bargain price, based on its growth potential.

To estimate a stock's value relative to its current price our Valuation Rating combines:

• stock price;
• projected earnings;
• projected earnings growth;
• dividends.

By combining these elements we can establish a rating for the analyzed company.

There are five ratings, ranging from strongly undervalued [] to strongly overvalued [] (see below).

theScreener.com Valuation Rating
(difference between projected value and current price)

When we analyze a company's projected earnings growth, we place a certain emphasis on the G/PE Ratio. While the first two elements in our analysis are important, and fairly simple to understand (stock price and earnings), the G/PE Ratio merits further explanation.

Some analysts watch the PE (Price Earnings ratio) - the ratio of stock price divided by earnings per share. In general, this ratio is fairly linear: a low PE suggests an inexpensive/low-risk stock, while a high PE suggests an expensive/high-risk stock.

In our model, the concepts of expensive/inexpensive do not depend on the PE, but on the relation between the PE and growth. Multifactor analysis has showed that the estimated growth of earnings provides the best base for the evaluation of a stock. There is approximately a 60% correlation of estimated earnings growth to stock value.

Our Growth to PE Ratio measure quickly evaluates a company and detects firms that offer the greatest relative potential for the future and are therefore, the most undervalued. Correspondingly, our Growth to PE Ratio also detects firms that offer the least relative potential for the future and are thus, the most overvalued. Our Growth to PE Ratio measure conveniently compares two stocks at a glance. Our growth projections are always based on an average of at least three estimates.

The moment an investor buys a stock, the stock's present situation becomes the past, and the success of the investment depends fully on the future. The Corporate focuses on the future in order to establish a true Valuation Rating.

The volatility of a stock is its degree of random variability. A stock, which fluctuates widely over time, has high volatility. One, which is stable, has low volatility.

Both short-term (1 month) and long-term (12 months) stock volatility figures are indicated.

Low Volatility

High Volatility

This figure measures the performance of a stock relative to its national index (compared to four weeks ago).

For example, a grade of 2 for a given stock would mean that this stock performed 2% better than its national index. On the contrary, a grade of -3 would indicate a performance of 3% under the index. We have chosen not to show the absolute performance, since the index remains the valid benchmark. For a given stock, figures that show an absolute gain of 2% in a market that also gained 2% do not represent any remarkable information. However, a stock that consistently beats its national index is clearly one sought after by investors. A chronic under-performance, of course, would indicate serious problems.

In fact, we use 4 week Relative Performance compared to Earnings Revision Trend. A positive Earnings Revision Trend for a stock that does not show a positive 4 week Relative Performance rating should force the investor to question the pertinence of this revision. In the other direction, a stock with a negative Earnings Rev Trend that stills beats its index (4wk Rel Perf > 0) means that something special is happening with this stock, since investors are still buying it.

This is an abbreviation for 7 week Earnings Per Share Revision. This column concerns the value of these revised earnings. A figure of 2.8 implies that the analysts, compared with seven weeks ago, have now revised and raised their estimates by 2.8%. On the contrary, a negative number means that the earnings were revised at a lower estimate.