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

John:

At 02:48 PM 12/3/2007, you wrote:

> From the The Toolshed forum at StockCentral.com, John Tufts writes:

>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?

Sure. 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 is 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.)

ET

----- Original Message -----

From: toolshed@stockcentral.com

To: jmtufts@Bresnan.net

Sent: Monday, December 03, 2007 1:27 PM

Subject: [SPAM] [StockCentral.com] Tool Kit 5, Low Price (8bc81d1b-3de8-4ffc-871c-ccdede050f83)

A message was posted to a thread you are tracking.

ETraub Posted:12/03/2007 8:29 PM

Subject: Re: [The Toolshed]: Tool Kit 5, Low Price (8bc81d1b-3de8-4ffc-871c-ccdede050f83) John: At 02:48 PM 12/3/2007, you wrote: > From the The Toolshed forum at StockCentral.com, John Tufts writes: > >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? Sure. 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 is 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. ) ET

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