Ready to take off

What is ready to take off?

Ready to take off section of the BTT stock rankings gives a unique selection of stocks that are close to their highs in price and have their EPS and Price Relative Strength rankings above 80. By far these are the stocks which are real leaders in the market at the given moment. Ready to take off is one of the closely followed lists of many serious investors and fund managers.

How to use ready to take off in trading?

The stocks that list on the readyto take off section are preselected for robust performance. Once a stock shows itself in the list, it needs to be tracked closely for trading and investment entries. Wait for the stock to form a base and then when it attempts to take off the previous highs, trade long. Stocks that are at the new highs tend to give more number of new highs. At the time of this writing we have  Tata Global Beverages etc., doing it in reality out there in the markets.

Though the stock selection made in this listing are the strongest ones, still we insist that you adhere to strict stop loss rules. You can use the 8% stop loss rule to your positions here.

Any queries and clarifications about the products and schemes listed in our BTT rankings, please feel free to write to process@bravisatempletree.com.

How to use EPS ranking?

What is EPS growth?

The earnings per share (EPS) number that you want to know is calculated by dividing a company’s total Nett profits by the number of total outstanding shares. The percentage change in EPS in comparison with the company’s previous results is one of the most important gauges in stock selection. The greater the percentage increase, the better. This is known as EPS growth.

What is EPS Ranking?

Strong earnings growth is required for a stock’s success and has a greatest impact on its future price movements. The first most important component of the BTT’s EPS Rankings is the Earnings Per Share (EPS) ranking. EPS ranking calculates the growth and stability of each company’s earnings over the recent years and the immediate quarters, giving importance to the recent TTM years and quarters. The result is compared with all other stocks that are tracked by the BTT Index and is ranked on a scale from 1 to 100, with 100 being the best.

Example: An EPS ranking of 80 means that a company’s earnings over the short and long term are in the top 20% of the roughly 1000 stocks being tracked.

This one number gives you the relative earnings performance of the companies and the future prospects for their stocks. With this you can compare the audited results of each company between others. For example you can compare the earnings growth of Infosys with ITC, Reliance, SBI or ICICI Bank.

Since earnings strength and growth are the most basic measures of a company’s success, the EPS ranking is invaluable for separating the true leaders from the poorly managed and underperforming companies. This is most essential in today’s global competition.

What are the stocks that are tracked?

Stocks belonging to both the NSE and BSE 500 list along with those that have Mutual Fund participation are taken for tracking in our BTT index. At present the tracking index consists of 868 stocks. Almost all the stocks confer to minimum liquidity and financial parameters set by our Index forming committee.

How can we use EPS rankings?

The EPS rankings can be used in both as standalone as well as in combination with other ranking to find the strongest stock to trade.

As standalone

Once a stock moves into the 80-100 bands of rankings, it enters the league of strong stocks by earnings. Start placing the stock on your watch list and monitor its movements. Most of the times, these stocks are in a bullish trajectory. Wait for the stock to pull back & move below its 13 and 26 EMA’s. It can either form a bearish trend or go non –trending. In case of a bearish trend the first close above 26 EMA is a trade signal to go long. Similarly when the stock develops a non-trend, wait for the nearest resistance to be breached for a long trade entry. Most of the times, these trades are multi baggers and move up very fast. But still we strongly recommend stop loss for every trade. Use 8% stop loss rule with discipline that is you exit your position if the stock moves below 8% from your entry.

In combination with other rankings.

When a stock has both its EPS as well as PRS rankings above 80, this stock enters into the super strong performers list. Wait for the stock to form a base on its existing move and trade the resistance break. Again ensure that the stop is in place with the 8% rule.

Use of Mutual Fund Buy/Sell Rankings

Mutual Funds are a better informed lot than an individual investor by any means, of course there are some who do not have the worth of doing it, and most of them have research teams to select a stock before they invest in them. Hence here at BTT we track the mutual funds buy/ sell positions in each stock on a monthly basis. This gives us clear standalone information about, if the funds are getting in are getting out of the stock. The list of positions of each stock is then ranked to find which one is most preferred and the one least preferred. This information will be helpful for us to know if the stock we are willing to buy is the funds favorite or not. IN case funds are sellers then it is better to avoid that stock, provided it has average rankings.

There are some stocks which the funds themselves have not noticed yet, which BTT gets out exclusively. If a stock has a ranking of above 95 on EPS and PRS, but funds presence is negligible, we can take a bet to get into the stock before funds charge in, in such cases, which are mostly rare there will be immediate gains to be made from the stock. This is because, very soon finds will notice the strength of the stock and come in to buy in large quantities which will take the stock upwards to several new highs too.