I believe I posted an "autobiographical" description of my job several months ago, but I don't recall which thread it was.
I'll give the briefs:
I have invested in individual stocks for a long time (since the roaring '70s), but have been strengthening my research and analysis skills during the past several years. In 1996, I founded Taurus Investments, a small firm which provides research, analysis, stock recommendations and stock-picking strategies to brokers and individual investors. I specialize in small-medium companies which have high growth rates.
My basic model for achieving substantial returns is buying high growth stocks when they trade at steep discounts to a fair valuation. When they rebound, the stocks will experience both multiple expansion and earnings growth. When certain price targets are reached, fractional profit-taking may be used to reallocate cash. The result is an excellent return on investment.
Some recent examples include:
1996- SMTC, THQI, ZIGO, LUFK, NVLS, NOV, CCSC, HMA, RPR.
1997- WATS, COHU, NCES, CD, CGN, QGLY, BCHE, CNTO, ZILA, BTIM.
I do follow (and own) stocks which I haven't discussed at great length. For example, I own CSCO, AMAT and KLIC. I have owned COMS, GLX, KO, DIS and other stocks which I wouldn't recommend. I am a big proponent of small/mid-caps right now, because it's only a matter of time until the big-caps cease to perform well. I also follow a bunch of stocks which I don't own or recommend yet, such as NSS, KEG, PTEN, JOB, ISTN, JHPC, TLCM, CYMI, TBDI, MCRL, VECO, RADAF, IPIC, NOVN.
The stocks which I have listed on my profile page are my favorites for the next 1 and 2 years, based on anticipated price appreciation, and adjusted for risk (I don't mean volatility, I mean real risk). For example, I see THQI as being the best investment for the next 2 years, when I consider that it's not very risky and it offers significant upside. In contrast, BTIM may significantly outperform THQI in the next 2 years, but it may also go nowhere (or go down). As a result, the stocks I have listed are my best recommendations for reliable investments, not merely speculative junk.
However, there's generally room in most portfolios for all sorts of stocks, so I can recommend stocks for each individual's needs. But I have a lot more faith in THQI, SMTC, LUFK, ZIGO, NOV and NCES than I have in BTIM, QGLY, BDE and CGN, even though the latter stocks may outperform my favorites.
I recommend that my favorite stock picks comprise a "core" position in an aggressive portfolio, while the latter, more speculative stocks should be added only to supplement the core stocks. I own all of these stocks, although my favorite picks make up about 2/3 of my aggressive stock portfolio. Keep an eye on my profile page, because I occasionally change some of the favorites, based on valuation and fundamental changes.
I hope that this is informative.
Todd |
