Simit Patel

ShortScreen is a service that helps you identify stocks that are shorting opportunities. They use something called the Altman Z-Score Model, a formula for identifying distressed companies. Here's what ShortScreen has to say about the Altman Z-Score Model:

In its initial test, the Altman Z-Score was found to be 72% accurate in predicting bankruptcy two years prior to the event, with a Type II error (classifying a firm as bankrupt when it does not go bankrupt) of 6%. In a series of subsequent tests covering three different time periods over the next 31 years (up until 1999), the model was found to be approximately 80-90% accurate in predicting bankruptcy one year prior to the event, with a Type II error of approximately 15-20%

Here are some more links for learning about the Altman Z-Score Model:

Altman Z-Score
Z-Score Financial Analysis Tool - Wikipedia, the free encyclopedia
Z-Score
ProvenModels - z-score - Edward I. Altman
http://pages.stern.nyu.edu/~ealtman/Zscores.pdf (pdf from creator of Altman Z-Score Model)

ShortScreen scans a universe of approximately 3,000 stocks to find distressed stocks based on their Altman Z-Score Model. The set of stocks scanned includes:

1. Stocks that traded on the NYSE, AMEX, NASDAQ, OTC Bulletin Board, and the Pink Sheets
2. Have an average volume of 50,000 shares or more traded over the previous three months
3. had a share price greater or equal to $0.25 for stocks (except Pink Sheets; for Pink Sheets, a daily traded value of $30,000+ was used as the criterion)

Who is ShortScreen For?

ShortScreen is NOT for most of the folks here at InformedTrades; it is not a technical analysis, chart-reading tool. It is more based on the fundamental factors that drive a company. As such, it is useful for investors and trader/investor hybrids.

Reward: 140 InformedPoints

The reward for reviewing this product is 140 InformedPoints. The review should include the following:

1. How you used this as part of trading strategy (i.e. like on a demo account with stockbroker like ThinkOrSwim)
2. Whether or not you found this useful
3. Your impressions of the company, the price point, and the overall experience

If you are interested in reviewing this product for the InformedTrades community, please reply to this thread; if you are approved as reviewer, you will be given a complimentary login. If you have not already, please review our document on the InformedTrades Review Program (ITRP).

Click here to go to ShortScreen.com.

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