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In Tool Kit 5, when using the "Potential Low Stock Price Selection" box, if you type "Alt R" in the "Other" Section, you get a low price called the "Price Variance Quotient or Price Variant Quotient. I am unable to find a definition or formula for this other than this was originated by Benjamin Graham and used by Warren Buffett to select stock prices based on historic high or low prices. Can you help out?
John Tufts
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This from an article by Brian Lewis (Puget Sound Chapter) in September of 2006:
"Gayle Olson invented a method that uses the historical ratio of the low price to the high price. You can do this with a calculator: start out by summing the high prices for the last 5 years from section 3 of the SSG, and then summing the low prices. Divide the sum of low prices by the sum of high prices and multiply that by the high for this year. If you use Stock Analyst Plus you can get this automatically (it's one of 7 low price options they provide). You can also get this in Investor's Toolkit using alt+R in the low price dialog box."
Gayle was an NAIC veteran who sought a means of quickly "calculating" a low price when doing an SSG. (I don't think either Warren Buffett or Ben Graham would have had much use for it.)
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I use TK6. Was that only a feature in TK5? I tried it with one of my stocks (alt + R) while in the low price option box, but nothing happened.....
Don m
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In Toolkit 6, the Price-Variant Quotient-determined low price is one of the options you can choose in the Low Price entry box, so there is no need for the shortcut key any more.
Doug
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