System and Method for Selecting Securities for Investment

• US 20090157564A1
• Filed: 10/28/2008
• Published: 06/18/2009
• Est. Priority Date: 08/03/2001
• Status: Active Grant

• Current Assignee: Joseph H. Cross
• Original Assignee: Joseph H. Cross
• Inventors: Cross, Joseph H.
• Granted Patent: US 7,739,179 B2
• Time in Patent Office: Days
• US Class Current: 705/36.R
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• CPC Class Codes: G06Q 40/04 Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange
• CPC Class Codes: G06Q 40/06 Asset management; Financial planning or analysis

Abstract

A system and method for automated selection of securities within an index for purchase or sale. The system and method according to certain embodiments of the present invention select securities within and index for purchase based on the percentage differential of the price of each security within the index and the 52-week high price. A target sell price is determined based on a pre-selected percentage increase of over the purchase price of the selected security. Once the market price of the selected security reaches the target sell price, the system and method according to certain embodiments of the present invention sells the selected security. The proceeds of the sale of the selected security may be reinvested according to the second selected security within the index.

Claims

1-23. -23. (canceled)

24. A computerized method of selecting a security for purchase and for sale, the method comprising:

selecting an index of a plurality of securities for investment of funds;

gathering data from financial data service providers on each security included in the index, the data comprising current price to earnings ratio of each security and the 52-week high price to earnings ratio;

determining, by a computer, the percentage difference between the current price to earnings ratio and the 52-week high price to earnings ratio for each security within the index;

selecting at least one security for purchase based on the difference between the current price to earnings ratio and the 52-week high price to earnings ratio of the security, wherein the selected security is the security within the index that is trading at the greatest percentage difference between the current price to earnings ratio and the 52-week high price to earnings ratio;

purchasing shares of the selected security;

determining, by a computer, a target sell price for the selected security based on a pre-selected percentage increase above the purchase price;

comparing, by a computer, the current market price of the selected security with the target sell price; and

selling the selected security when the current market price reaches the target sell price.

25. The method according to claim 24 further comprising purchasing a second selected with at least some of the proceeds of the sale of the first selected security and calculating a target sell price for the second selected security.

26. A computerized method of selecting a security for purchase and for sale, the method comprising:

selecting an index of a plurality of securities for investment of funds;

gathering data from financial data service providers on each security included in the index, the data comprising current price to book ratio of each security and the 52-week high price to book ratio;

determining, by a computer, the percentage difference between the current price to book ratio and the 52-week high price to book ratio for each security within the index;

selecting at least one security for purchase based on the difference between the current price to book ratio and the 52-week high price to book ratio of the security, wherein the selected security is the security within the index that is trading at the greatest percentage difference between the current price to book ratio and the 52-week high price to book ratio;

purchasing shares of the selected security;

determining, by a computer, a target sell price for the selected security based on a pre-selected percentage increase above the purchase price;

comparing, by a computer, the current market price of the selected security with the target sell price; and

selling the selected security when the current market price reaches the target sell price.

27. The method according to claim 26 further comprising purchasing a second selected with at least some of the proceeds of the sale of the first selected security and calculating a target sell price for the second selected security.

28. A computerized method of selecting a security for purchase and for sale, the method comprising:

selecting an index of a plurality of securities for investment of funds;

gathering data from financial data service providers on each security included in the index, the data comprising current price to sales ratio of each security and the 52-week high price to sales ratio;

determining, by a computer, the percentage difference between the current price to sales ratio and the 52-week high price to sales ratio for each security within the index;

selecting at least one security for purchase based on the difference between the current price to sales ratio and the 52-week high price to sales ratio of the security, wherein the selected security is the security within the index that is trading at the greatest percentage difference between the current price to sales ratio and the 52-week high price to sales ratio;

purchasing shares of the selected security;

determining, by a computer, a target sell price for the selected security based on a pre-selected percentage increase above the purchase price;

comparing, by a computer, the current market price of the selected security with the target sell price; and

selling the selected security when the current market price reaches the target sell price.

29. The method according to claim 28 further comprising purchasing a second selected with at least some of the proceeds of the sale of the first selected security and calculating a target sell price for the second selected security.

30. A computerized method of selecting a security for purchase and for sale, the method comprising:

selecting an index of a plurality of securities for investment of funds;

gathering data from financial data service providers on each security included in the index, the data comprising current price to cash flow ratio of each security and the 52-week high price to cash flow ratio;

determining, by a computer, the percentage difference between the current price to cash flow ratio and the 52-week high price to cash flow ratio for each security within the index;

selecting at least one security for purchase based on the difference between the current price to cash flow ratio and the 52-week high price to cash flow ratio of the security, wherein the selected security is the security within the index that is trading at the greatest percentage difference between the current price to cash flow ratio and the 52-week high price to cash flow ratio;

purchasing shares of the selected security;

determining, by a computer, a target sell price for the selected security based on a pre-selected percentage increase above the purchase price;

comparing, by a computer, the current market price of the selected security with the target sell price; and

selling the selected security when the current market price reaches the target sell price.

31. The method according to claim 30 further comprising purchasing a second selected with at least some of the proceeds of the sale of the first selected security and calculating a target sell price for the second selected security.

32. A computerized method of selecting a security for purchase and for sale, the method comprising:

selecting an index of a plurality of securities for investment of funds;

gathering data from financial data service providers on each security included in the index, the data comprising current price to EBITDA ratio of each security and the 52-week high price to EBITDA ratio;

determining, by a computer, the percentage difference between the current price to EBITDA ratio and the 52-week high price to EBITDA ratio for each security within the index;

selecting at least one security for purchase based on the difference between the current price to EBITDA ratio and the 52-week high price to EBITDA ratio of the security, wherein the selected security is the security within the index that is trading at the greatest percentage difference between the current price to EBITDA ratio and the 52-week high price to EBITDA ratio;

purchasing shares of the selected security;

determining, by a computer, a target sell price for the selected security based on a pre-selected percentage increase above the purchase price;

comparing, by a computer, the current market price of the selected security with the target sell price; and

selling the selected security when the current market price reaches the target sell price.

33. The method according to claim 32 further comprising purchasing a second selected with at least some of the proceeds of the sale of the first selected security and calculating a target sell price for the second selected security.

34. A computerized method of selecting a security for purchase and for sale, the method comprising:

selecting an index of a plurality of securities for investment of funds;

gathering data from financial data service providers on each security included in the index, the data comprising current dividend yield of each security and the 52-week high dividend yield;

determining, by a computer, the percentage difference between the current dividend yield and the 52-week high dividend yield for each security within the index;

selecting at least one security for purchase based on the difference between the current dividend yield and the 52-week high dividend yield of the security, wherein the selected security is the security within the index that is trading at the greatest percentage difference between the current dividend yield and the 52-week high dividend yield;

purchasing shares of the selected security;

determining, by a computer, a target sell price for the selected security based on a pre-selected percentage increase above the purchase price;

comparing, by a computer, the current market price of the selected security with the target sell price; and

selling the selected security when the current market price reaches the target sell price.

35. The method according to claim 34 further comprising purchasing a second selected with at least some of the proceeds of the sale of the first selected security and calculating a target sell price for the second selected security.