Driehaus Screen

Richard Driehaus is considered in some circles to be the father of momentum investing. * Driehaus believes strong earnings surprises, sharp upward earnings revisions and both accelerating and sustained earnings growth fuel rising stock prices. * Driehaus's strategy seeks, among other characteristics, small- and mid-cap companies with year-to-year increases in earnings, strong and positive earnings surprises and short-term price strength. The criterias used to evaluate stocks in the Driehaus Screen are: *The year-to-year growth rate in earnings per share from continuing operations has increased over each of the last three fiscal years. * Growth in earnings per share from continuing operations over the last 12 months has been positive. * The latest quarterly earnings per share surprise (the percentage difference between the actual announced earnings and the consensus earnings estimate for the same period) is greater than or equal to 10%. * At least three analysts provide earnings estimates for the current fiscal quarter. * The percentage change in stock price over the last four weeks is positive. * The 26-week relative price strength is greater than or equal to the industry’s 26-week relative price strength. * The market capitalization for the latest fiscal quarter is greater than $50 million and less than $3 billion. * Those companies that trade as American depositary receipts (ADRs) are excluded. * The average daily volume for the last 10 days is in the top 50% of all stocks.