Quant Guidelines

1. Positive (above Sector Average), More Positive (earnings growth Momentum) – Ideal Scenario
2. Positive (above Sector Average), Positive (same)
3. Positive (above Sector average), Less Positive (above sector average)
4. Positive (at Sector average) = Opportunity cost to simply own the sector
5. Positive (below Sector Average), Positive (at or above sector average) — Could be worth looking at Vs Sector Positive (below Sector average), Positive (below sector average) — Opportunity cost to simply own the sector.
6. Negative (below sector average), Positive (below sector average), – Opportunity cost to simply owning the sector.
7. Negative (below sector average), Positive (at sector average) — Worth looking at (turnaround story)
8. Negative — Loss Making (below sector average), Positive (above sector average) — definitely worth looking at (turnaround story).
9. Negative (below sector average), negative (below sector average) — not worth looking at all. Could provide a good hedge to a high-quality long idea in same sector. Have to decide which is a better hedge i.e. this stock or the sector Of the market.
10. Hedges to longs — Market, Sector, Negative (negative) Of Negative (below average), Of classic shorts (low correlation from intra sector)

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