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MAGNET Complex Screen

Performance

  MAGNET Complex S&P 500
YTD Return: -9.6% 8.4%
Five Year Return: -6.5% 14.4%
Ten Year Return: -3.9% 6.1%
Inception: 11.9% 4.4%
Data as of 8/29/2014
The MAGNET Complex Screen represents AAII's interpretation of the investment approach and is not determined by the original strategist. The list of passing companies represents a hypothetical portfolio, which is used to track the screen’s performance on a chart.

Passing Companies

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Screening Criteria

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Chart

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Most investment strategies, especially fundamental stock screens, typically have some sort of style “bias”—leaning more toward a value- or growth-oriented approach. However, Jordan Kimmel blends value, growth and momentum investing styles into a singular approach, which he termed the MAGNET Stock Selection Process. Kimmel is the managing member of the Magnet Investment Group, LLC, which has previously licensed its stock selection process to John Nuveen & Co. for unit investment trusts. Kimmel hosts his own weekly radio show “Profitable Investing With Jordan Kimmel.”

The MAGNET approach has been termed “CAN SLIM at a reasonable price.” The CAN SLIM approach is based on William O’Neil’s analysis of the 500 companies with the biggest price increases between 1953 and 1993. O’Neil quantified the characteristics of these stocks to form the CAN SLIM approach, which focuses primarily on earnings and price momentum. MAGNET does hold some similarities with William O’Neil’s CAN SLIM approach. However, MAGNET adds a value emphasis as well as a focus on revenue growth instead of earnings growth.

Kimmel outlined the MAGNET Stock Selection Process in his book “Magnet Investing,” (Next Decade, Inc., 2000) which is currently in its second edition. This book served as the foundation for this article.

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