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Oberweis Octagon Screen

Performance

  Oberweis Octagon S&P 500
YTD Return: -6.1% 11.9%
Five Year Return: 21.7% 13.5%
Ten Year Return: 7.2% 5.8%
Inception: 13.4% 4.6%
Data as of 11/28/2014
The Oberweis Octagon 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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Oberweis Asset Management, through its family of mutual funds, seeks out rapidly growing companies and invests in those that they feel are attractively priced, a process the company terms AGARP, or aggressive growth at a reasonable price. Guiding this process are eight points that make up the "Oberweis Octagon." This article will walk you through these guidelines while creating a stock screen that mimics this approach.

The Oberweis Octagon:
  1. Rapid annual growth in revenue (sales)
  2. Rapid annual growth in pre-tax income
  3. Reasonable (low) price-earnings (PE) ratio in relation to underlying growth rate
  4. Products or services that offer the potential for strong future growth
  5. "Favorable" recent (quarterly) trends in revenue and earnings growth, ideally showing acceleration
  6. Reasonable (low) price-sales ratio
  7. Review of company financial statements, especially the footnotes, to attempt to identify future problems
  8. Strong price strength relative to the market (high relative strength)

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