About the Stock Picks List
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for the next six months.
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After the Free Trial
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To learn more about the Stock Picks List,
and how it can work for you, see below.
What is the Stock Picks List?
The Stock Picks List is a select list of approximately 50 to 100
undervalued stocks, each picked quarterly by our Value
Investing Model. The Model actively screens over 2,000 NYSE companies.
At the beginning of each calendar quarter, a new Stock Picks List is
published on the StockValuePicks.com website.
Stocks are initially added to the Stock Picks List as "buy"
recommendations, carried forward to the next Stock Picks List as
continuing buy or "hold" recommendations, and eventually deleted as
"sell" recommendations. In general, stock picks and
recommendations do not change until the next quarterly publication of
the Stock Picks List. The only exception occurs when there is a
special alert changing a buy or hold recommendation to a sell
recommendation during the current quarter, due to (i) the rising market
price for the stock, (ii) a sharply negative earnings announcement by
the company during the quarter, or (iii) de-listing of the stock by the
NYSE usually due to a takeover of the company by another company.
New: With a simple RSS Feed link added to your RSS Reader,
you can receive automatically get update notices on your Internet
browser whenever there is a change made to the Stock Picks List. See
the Home Page for details.
The Stock Picks List is ready to be used "as is".
All stock picks on the List have been screened and found to be undervalued
(in the case of buy recommendations) or have recently been undervalued (in the
case of hold or sell recommendations); some stocks are significantly
undervalued.
The Stock Picks List displays each stock pick in the following
format, with a buy, hold or sell recommendation and
summary data values for each of the Company Selection
Factors that the Model used to select the stock:
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Company |
Symbol |
Trend1 |
History2 |
Upside3 |
Stability4 |
Recommendation |
XYZ CORP. |
XYZ |
16 |
18 |
10 |
94% |
BUY |
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Company Selection Factors |
1Trend |
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- |
length of time-series data considered, in years |
2History |
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consecutive quarters that the stock has been picked |
3Upside |
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- |
unrealized leverage of the stock; higher numbers mean more
upside price potential |
4Stability |
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R-square of earnings relative to trend line; higher percentages mean
more earnings stability |
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In addition, the Stock Picks List includes a hyperlink
to the Company Website and these four downloadable Company
Graphs for each of the stock picks:
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Stock-Price Trend |
Earnings Trend |
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Recent Quarterly Results |
Price-Earnings Regression |
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How Do You Use the Stock Picks List? |
1. |
Buy a stock if it has a "buy" recommendation,
i.e., when the stock is significantly undervalued. |
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Note: In the case of stocks that have a "hold"
recommendation, you have missed your opportunity to buy
these stocks when they were significantly undervalued and
had a buy recommendation on earlier editions of the Stock
Picks List. |
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To select stocks from the List, you can either:
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Your stock buying decisions should always incorporate
some basic analysis of your existing stock portfolio and
other investment assets, so that you balance risks and build
diversity of investments. One commonly used technique
is to select stocks of companies operating in different
industries or economic sectors. |
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2. |
Sell a stock when it has a "sell" recommendation on the next
quarterly Stock Picks List or if there is a special alert
changing its buy or hold recommendation to a sell recommendation
during the current quarter. |
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Note: The Stock Picks List is not a day-trading or
market-timing tool. The average holding
period for stocks on past Stock Picks List is between one and
two years, but the history of each stock is unique. You can check
the holding period for each stock pick on the current Stock
Picks List by looking at the "History" value of the stock
found on the Stock Picks List. |
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3. |
Reinvest your sales proceeds and dividends according to the
Reinvestment Strategy table appearing on the current Stock Picks
List. |
The Performance Results page of this Website
shows the results of using the Stock Picks List.
Click below if you want us now to:
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To learn more about the Stock Picks List,
and how it can work for you, see below.
If you are analytically inclined, you can customize your stock
selections from the Stock Picks List to fit your personal investment
strategy and your existing stock portfolio,
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by making your own evaluation of the Company
Selection Factors and the Company Graphs we provide, for
example by assigning more or less weight to one or more
of the Factors; |
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by using other information that only you have, such
as the composition of your current stock portfolio, your
other investment assets, and your financial resources
available for stock investing; |
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by using other investment information sources, such
as company websites, financial newspapers, libraries,
and an investment adviser if appropriate; |
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by selecting a random or planned sample of stocks
from the Stock Picks List (see How
Many Stocks Should I Purchase? below). |
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How Does the Free Trial Work?
When you submit your first Request Form, you get free and unlimited
access to the StockValuePicks.com website and the Stock Picks List
with its accompanying graphics and company data for two calendar
quarters.
We are giving you this lengthy free-trial use of these powerful
value-investing tools because we are confident that, after using the
Stock Picks List, you will want to continue to receive it to keep your
personal portfolio of stocks updated and consistent with the Model's
selected stocks. We recommend that you use the Stock Picks List
for at least six months to realize optimal test results.
How and When Do You Subscribe?
The Subscription Price for the Stock Picks List after your free
two-quarters trial period has expired, is only $19.95 per quarter
payable by Visa® or Mastercard®. You simply add your credit card
information to the next Request Form that you submit after the
free-trial period and update the other information as needed on that
Request Form and on each additional Request Form that you send to us.
Creditcard information is not retained by us, except to execute the
purchase.
With each quarterly subscription, you will be able to view or
download the Stock Picks List with its accompanying graphics and company
data as often as you want during the next three months
at no additional
charge.
Click below if you want us now to:
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To learn more about the Stock Picks List,
and how it can work for you, see below.
The optimal number of stocks to select from the Stock Picks List
depends on your personal situation: your financial resources, your need
or desire to diversify your total investment portfolio, and the amount
of brokerage commissions and other transaction costs you are willing to
bear in order to achieve diversification. For example, buying a
single share of the stock of each company on the Stock Picks List would
be a diversified approach but it would not be efficient in terms of
brokerage fees. On the other hand, acquiring 100 shares of each of
the company stocks on the Stock Picks List would be efficient for
purposes of lowering per share brokerage costs, but it might not be
realistic from a budget standpoint nor prudent as an initial investment.
Somewhere between these two extremes is the optimal approach for you.
To help you make the right decision for your personal situation, we
provide the following sampling distribution statistics based on the
Model's performance results during the First Quarter 2002, as compared
to the end of the previous quarter:
Number of buy and hold stocks on the Stock Picks List |
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88 |
Model's performance results during 1Q of 2002 |
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+7.1% |
If you had purchased the "buy" stocks of: |
You had a 86% chance that your results were between: |
You had a 94% chance that your results were between: |
8 Companies |
4.1% and 10.2% |
1.2% and 13.2% |
10 Companies |
4.4% and 9.8% |
1.7% and 12.5% |
12 Companies |
4.7% and 9.5% |
2.3% and 12.0% |
18 Companies |
5.2% and 9.0% |
3.3% and 10.9% |
Each of the above results compares favorably with the
performance of the recognized market averages during the First Quarter 2002:
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Stock Picks List | 7.1% |
S&P 500 Index |
-0.1% |
Dow Jones Industrials |
+3.8% |
NASDAQ Composite |
-5.4% |
Wilshire 5000 Index |
+0.6% |
Russell 2000 Index |
+3.7% |
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You can reduce the chance of an extreme result by
increasing the number of companies on the Stock Picks List that
are in your portfolio. However, remember that statistics only measure of the
mathematical probability that an event will occur. There is no such thing as
a "statistical certainty".
Click below so we can:
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