Quant for micro-stocks of South Korea

I analyze and select top 20 blue-chip micro-stocks of South Korea using specific criteria every end of month.

  • The current top 20 companies may differ based on today’s date. The list of companies is based on data from the end of each previous month.
  • The five specific criteria for selecting the top 20 blue-chip micro stocks in Korea are as follows:
  1. Extracting Small Stocks within the Bottom 20% of Market Capitalization: Selecting stocks that are in the lowest 20% of market capitalization across the entire market.
  2. Excluding Specific Types of Stocks: Excluding financial stocks, holding companies, stocks with management rights, deficit companies, companies with annual deficits, Chinese companies, and PTP (Pass Through Paper) companies.
  3. Using Financial Ratios: Evaluating the value of companies using financial ratios such as Price-to-Earnings Ratio (PER), Price/Sales Ratio (PSR), Price/Operating Ratio (POR), and Price/Gross Profit Ratio (PGPR).
  4. Assessing Financial Performance: Assessing the growth potential of companies based on financial performance indicators such as annual net profit growth, operating profit growth, gross profit growth, and sales growth.
  5. Final Selection of Top 20 Companies: Selecting the top 20 companies that meet all the above criteria, with the highest potential for growth and financial stability among them.
  • These criteria are subject to regular review and adjustment, considering market volatility, growth prospects of specific industries, and economic factors. The purpose of this process is to select high-potential and stable investment targets among small-cap stocks.
  • The process of selecting the top 20 blue-chip micro stocks in Korea at the end of each month is conducted according to specific criteria. To provide the latest top 20 companies, the most recent data is accessed and analyzed, and companies are selected based on the following five selection criteria. It is important to note that these are entirely personal investment criteria.
  • Additionally, it is advised that investing in small-cap stocks from the end of October each year to the end of April the following year could potentially yield high returns. Twenty small-cap stocks are selected at the end of each month, and the portfolio of selected small-cap stocks is rebalanced monthly as the selection changes.
  • For a passive investment strategy, the 20 stocks selected in October are sold at the end of April the following year.
  • However, this should not be taken as investment advice, and it is important to conduct your own research or consult with a financial advisor before making any investment decisions.

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