Column I – Recent Positive Upturn
Cameron : Now, the next column, Column I, is asking a similar question – Is there a recent positive upturn? Explain the thinking behind that, Tony.
Tony : Yeah. So, in other words, has the trend line been broken in the last six months? What we’re looking for in terms of the checklist is for a break on the upside. And if that’s happened, it’s really a signal to start buying in. So, we give it an extra point in the checklist because I expect that’s the start of a run. And more often than not, that’s a great time to buy and we get most of our returns at that kind of time.
Cameron : So if there is a positive upturn, it gets an extra point. If it doesn’t, we just blank it, we don’t give it a score. That means we’re not penalising it, it just doesn’t get a positive boost.
Tony : Yeah. Some things we’re looking for are things which boost the score rather than take away from the score, because if a share isn’t in an upswing, there’s no point penalizing it, because it’s probably in the right place to buy. It’s just that we think it’s a better place to buy if an upswing has just recently happened.