Welcome to Sun Tzu Growth Index. On Friday I ran some scoring algorithms to pin point the most
likely big winners over the next few months. The results is a 30 stock list which for sporting
purposes, I'll compare to DJIA (let's call this STIA and we'll calculate it the same way).
I want to emphasize that this is just the starting point. My promise to you is that a far greater
percentage of companies from this list will be big winners over the next few months than the Dow.
This however does not mean that you should throw away due diligence and blindly buy a company
because it is on this list (you could however buy the entire list if you don't have the time to
research each company). The companies are from various industries and they were selected via
different means. As a rule, the companies meet my golden rules of selection; they have superior
revenue growth, great operating margins, margin expansions, trade at reasonable valuations (nothing
above 6x revenue and many below 3x revenue), good chart patterns, and they have been around for a
number of years so that one can properly asses them. I like some better than others, but I
let you make up your own mind. I am not a holder of any of them so far, as I have my hands full
with other things. I will be buying from this list though. If you want, I will help you out in
your stock picking quest by discussing what things I think you should look for and how draw your
attention to points that you may not be looking at. This could evolve into a lively
discussion of stock selection and trading techniques.
By all means, invite others to take advantage of this thread. A few of you have sent me private
messages and asked me to invite someone over. This is an open thread. You all can invite anyone
and everyone you like to visit The Art of Investing. 'nuf said, here's the list:
Ticker Price Weight
aklm 9.50 32.14
apcc 44.75 6.823
apd 39.25 7.778
bsys 49.50 6.168
cdn 29.00 10.53
cdo 18.50 16.50
ce 31.75 9.617
cgo 37.25 8.197
cnmd 27.75 11.00
coms 40.00 7.633
csn 30.25 10.09
ctl 56.75 5.380
dslgf 16.00 19.08
galtf 18.00 16.96
imaxf 27.25 11.20
intv 26.25 11.63
kri 52.25 5.844
neg 52.75 5.789
novl 16.75* 18.23
oca 20.00 15.27
orb 39.75 7.681
orcl 34.75 8.787
pdg 16.00 19.08
pms 48.50 6.296
psix 18.75 16.28
ratl 23.25 13.13
resp 17.75 17.20
snps 49.00 6.231
stj 29.50 10.35
tlc 28.75 10.62
---- ----- -----
STIA 950
DJIA 9160
Russell 3000 = 625
* I have a small position in this one, but you knew that ;)
The prices are the Friday's closing prices and the weights are derived by dividing
9160/30/each-stock-price so that if you were to by a number of shares equal to its weighting of
each stock, then you would have spent $9160. We will use this to track the performance of
these picks (even though, I'd rather actively manage a few of them instead).
BTW, does anyone know how I can turn on and off the use of fixed fonts in mid post?
Cheers,
Sun Tzu
P.S. Frank, if this does not answer your question, post it here and I'll try to answer it. |
