Example: Applied Materials is shown from the July 24,2000 issue of IBD as 87,89,A,A,C

Normally companies with SmartSelect ratings of 80,80 BBB or higher may be prospects for further Investigation. Additionally those which rate 90 90 AAA might be even better prospects. Use of a chart can help in timing of buy and sell decisions.

Earnings Per Share (EPS) Rating (Shown in the first column on the left) Earnings per share growth is one of the most Important characteristics influencing the price of s stock. EPS Rating lets you easily identity companies with superior earnings records. EPS Rating measures each company's short and long term earnings growth rate relative to every other company In the IBO database. First, the two most recent quarters' earnings are compared with the same quarters' one year ego (short term). Then we examine the company's annual earnings growth rate for the past 5,4 or 3 years depending on history available (long term) and stability of long term earnings. The results are compared to all other companies and rated on a percentile scale from 1 to 99, with 99 being best. For example, a stock with an EPS Rating outperformed 90% of all other stocks in earnings growth. Generally, companies with superior earnings records rate 75 and above. In IBD's study of the Greatest Stock Market Winners, the average winning stock had an EPS Rating of 93 before making its major price advance.

Relative Price Strength (RS) Rating (second column) lets you quickly identity stocks with the best price performance. It measures each stock's price change over the last 12 months and compares it to all other stocks. The results are rated on a percentile scale from 1 to 99, with 99 representing the strongest price performers. For example a stock with a 90 RS Rating outperformed 90% of all other stocks over the past 12 months. Stocks dropping below a 70 rating show weaker or laggard relative price performance. The average RS Rating In models of the Greatest Stock Market Winner. was 87 before these Stocks made their biggest price advances.

Industry Group Relative Strength Rating (third column) compares the stock's industry group price performance over the past 6 months to the other 196 industry groups. A=top 20%, B=top 40%, etc. with E = bottom 20%.

Sales + Profit Margins + ROE (Return on Equity) Rating (fourth column) combines into one simple A to E rating ('A' being the best representing the top 20% of all stocks), four fundamental factors used by all analysts today. A companies sales growth rate over the last 3 quarters, before and after-tax profit margins, and return on equity(ROE). Sales growth and after~tax margins are computed using quarterly figures, and ROE and pre-tax margins are annual. All four factors take into account acceleration (rate of increase).

Accumulation/Distribution Rating (fifth column) allows you to interpret buying and selling activity In a stock. It uses a proprietary formula to analyze each stock's daily price and volume changes in the latest 13 weeks to determine if the stock has been under accumulation (buying) or distribution (selling). 'A' and 'B' ratings indicate heavy to moderate buying; 'C' shows a neutral balance of buying and selling; and 'D' and 'E' indicate moderate to heavy selling. Since Institutions exert the largest Influence on many stocks' price and volume, an 'A' or 'B' rating may indicate buying by Institutional investors.

OTHER IBD DATA: Vol % Chg (Volume Percent Change) lets you quickly identify stocks with unusual changes in daily trading volume that you wouldn't detect In 'standard' stock tables. Vol % Chg shows each stock's prior day's volume In terms of the percentage the stock traded above or below its average daily volume for the past 50 trading days. Stocks with a Volume % Change of + 50% or more are boldfaced, letting you easily spot stocks with significant increases in volume. For example. a + 200 means that stock traded 2O0% more volume yesterday than its average daily volume over the last 50 trading days.

Vol. 100s. gives the total shares traded for the day in hundreds (2 zeros omitted).

52-Week High shows the high price in last 52 weeks. NH in place of the price means a new high occurred that day. 52-Week High is boldfaced If its closing price is within 10% of a new price high. The less relevant 52-Week Low is omitted to provide space for IBD's SmaritSelect ~ Corporate Ratings.

Stocks at a new price high or up 1 point or more are boldfaced. A quick scan of boldfaced stocks will identify the day's relevant market performers. Stocks at new price lows or down 1 point or more are underlined. Boldfaced Italicized stocks have 80 or higher EPS and Relative Price Strength Ratings and were new Issues (IPOs) in past 8 years. Research has shown the majority of past big wlnning companies were IPOs at some point within the last 8 years.

Special codes: A small bold '5' after a company's name indicates it is in the S&P 500. A small bold 'c' means that a company has a new CEO in the last 2 years. A bold 'r' means the company has been repurchasing its own stock in the open market in the last 12 months. In the rotating column (after Vol 100s) shown Monday, Wednesday and Friday: Price/Earnings Ratio (P/E); Tuesday: Institutional Sponsorship Rating averages the 3-year performance rating 61 all mutual funds owning that stock plus the trend in recent quarters of the local number of funds owning the stock (A = best, E - worst); Thursday % Dividend Yield.

In the far right column (shown in order of priority): (x) = ex-dividends or ex-rights; (k) = earnings due to be reported in the next 4 weeks; (-) = earnings report appears in today's IBD: (o) = stock has listed options; (s) = stock split; (b) = company is bankrupt in receivership or in reorganization; (d) = distribution.