AL,
I'd like to further explain the appreciation statistics I quoted about our profiled stocks, as I could see where this may not be understood. A fine example would be TUSK Energy. We profiled this company in April when it was trading at $1.41. Within one month this stock hit a high of $2.38 for a gain of 68%. This is what I have referred to as "appreciation". Since that time the stock declined to a price of $1.20 as of September 7th. This would be one of the stocks that you included in your list of stocks that had declined. I would argue, however, that this stock has done quite well and that the important price is not today's price, but rather the high price since the company was profiled. If you were to take an average "appreciation" of all our profiled companies in this manner, you would get an average rise in stock value of 18% over the year on the 26 stocks to date. What this means is that anyone who bought TUSK, for example, at the time of our profile could have made a 68% return.
The 6 month average hold period means that if you bought all of our profiled companies at the date of the profile, then you would have held 26 stocks for an average period of 6 months to date. Hence the average appreciation to date of 18% would equate to 36% (times 2) if one were to annualize it (average 12 month hold period). I realize that these statistics are somewhat generalized, but I do believe they best reflect the potential gain that could have been realized on these stocks.
We have not recommended to anyone when to actually buy or sell these stocks. That is a personal decision. What we are doing is providing information on stocks that we feel are a good value at the time (or close to the time) we profile them. Since we profile a company every second Monday, we often do see changes in prices from the time we decide to profile a company and the time it actually appears on our site. We have not afforded ourselves the luxury of timing the market on this basis. It is up to the readers, as investors, to decide for themselves when, and if, to buy these stocks.
Thank you for your comments and I hope you continue to visit our site. We are working on some additional features for later this year and into next year. Hopefully, we'll all enjoy better market conditions by then.
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