| Frequently
Asked Questions |
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Q: How
many picks do I get?
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A:
Approximately 2-3 picks
a month. Stock
picks are posted on a web page for members. We email you
when we post a new stock pick on
the member's page and alert you by email when we feel it is time to
sell. Just about all stocks selected are priced under $10.
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| Q: What separates your service from others? |
A: Most
stock pick services today
are geared towards those who trade frequently. Many services offer
several stock picks daily, many more than you could ever make use of.
They do so to justify high subscription rates. Since they are
short-term oriented they typically only look at short-term technical
factors, ignoring fundamentals totally. The problem with basing buying
decisions purely on short-term technicals is that they are prone to
failure. When the technical factors don't workout right away what are
you left holding? In the end you typically end up with a lot of small
trading gains and a lot of small losses, not adding up to much at all
especially when considering all the time spent trading.
Our recommendations are based on technical and
fundamental factors. Our technical analysis is based on longer term
charts. Stocks that breakout based on longer term charts are less prone
to
failure. Breakout stocks that have the fundamentals to support the rise
in
stock price are also less prone to failure. If a stock that breaks out
doesn't work
out
right away you are still holding an undervalued stock, with a solid
balance sheet that limits
downside, that will probably breakout successfully in the future.
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Q:
How long do you hold your positions
for?
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A: Holding
periods will vary
depending on market conditions. We select stocks that have the
potential of going up 70%-100%
within 12 months or less. Our picks will sometimes go up 10% to
30%
within
weeks after we recommend them, but we hold out for more. We
prefer to wait for 70% - 100% gains before we recommend selling.
We look for big profits. For us that is the whole point of
seeking out low priced undervalued stocks in the first place.
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| Q: What about stock picks that go down? |
A:
There will be times when stock picks go down. The stock market at times
can be volatile, especially the tech sector. However, we typically
recommend stocks that trade between 1 and 2 times tangible book value.
Also remember from reading our Strategy Page
that our typical pick has a tangible book value comprised mainly of
current assets. This is important because stocks don't typically trade
below their tangible book values when the book value is comprised
mainly of current assets. There are exceptions such as when a company
is burning a significant level of cash. We do our best to avoid these.
Our picks have very strong balance sheets and
typically no debt. The stocks are undervalued. The combination of these
two factors greatly improves the likelihood that a stock pick that goes
down will make a full comeback and then some rather than spiraling down
and staying down indefinitely. This is why we don't run to sell our
picks if they go down. It is also the reason why we recommend stocks
with low price to book ratios in the first place.
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Q:
What categories of stocks do
you recommend?
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A: We
prefer small cap
stocks but will sometimes go with mid-caps. We stay away from
large or "mega-cap" stocks because they are typically over-owned.
We
also prefer technology stocks for their potential price
appreciation. We are very careful in our selections. It is
important that we keep risk
down
by selecting stocks that have a lot of cash and no debt, or very low
debt
compared to cash levels. We look for stocks that are undervalued based
on price-to-sales and price-to-book ratios yet don't have a history of
trading at such depressed levels. Often our picks are of stocks just
breaking out of basing patterns. We do not recommend Bulletin
Board or Pink Sheet stocks.
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Q:
What happens when my subscription
term is over?
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| A: You
will automatically be
billed for renewal of your subscription.
However you have total control over your subscription. If you want
to discontinue your subscription just log into your paypal account and
unsubscribe. You can also ask us by email to discontinue service which
we will do for you the same day you request it.
It doesn't get any easier. |
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Q:
What is your refund policy?
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| A: We do
not offer refunds
on our 3 or 6 month subscriptions. Our subscription
terms are brief and we do not force you to make long commitments. Our
orientation towards value is what compels us
to offer our service at a price affordable to even the
smallest
of investors. We do not expect you to buy every single
pick and we take this into consideration when we
set
our low subscription rates. |
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Any
questions? email us!!
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SUBSCRIPTION PRICES
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