About

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Andrew T. Gillies is Director of Communications at the Center for Audit Quality, an affiliate of the American Institute of CPAs, in Washington, DC. Based in Washington since 2002, he has also worked in editorial and communications roles at the Investment Company Institute, the World Bank, Forbes, and Vault.com. His policy-themed writing has focused on aerospace and defense, energy and environment, transportation, and financial services.

Friday, June 13, 2003

Testing A New Stock-Picking Model

WASHINGTON - Anyone with a computer and data feeds can come up with an investment model. We normally don't pay much attention to such methodologies unless they've been evaluated over a long period of time and with real money at stake. But we came across a relatively new idea, known as SPF, that seems worthy of being put to the test.

The inventor of this model isn't a newcomer to the investment business. Joseph S. Kalinowski, the director of research for New York brokerage Puglisi & Co., has six years of experience, five of which were spent analyzing databases at IBES International, an aggregator of analyst estimate information. Kalinowski has been with Puglisi since May.

Kalinowski's SPF is an acronym for "sentiment," "persistence" and "fundamentals." In each of these categories, he ranks stocks according to a variety of metrics. Taken together, the rankings produce an SPF profile signaling whether to buy, sell or hold.

Full story at Forbes.com