David Dodds
Administrator
We have all watched virtually every stock in existence get crushed downward in 2008. The indexes fell sharply only to recover slightly in December. In my opinion there is deep value in this market as some of these companies have solid fundamentals that were just caught in the stampede.
With that in mind, I used Google Stock Screener to parse out stocks that met the following criteria:
1. Market Cap of less than 300M
2. PE ratio of 5 or less
3. Stocks that lost at least 40% of their value over the last 52 weeks
4. Current pricing is between $1.5 and $3.5
5. Price/Book was 0.60 or lower
This strategy is aimed at finding the little stocks that we have not all heard of that could be poised for huge gains in 2009.
I plan to buy 1000 shares of all the stocks that met this criteria the first thing Friday morning (Full list and today's close listed). Estimated cost is approximately $97,460.
Here will be my no-thought strategy:
1. Buy/Sell these stocks for 1 month. I will purchase all positions on January 9th (Friday) and will purchase then in a reverse fashion (ie first purchase stocks that are down in early trading). I will sell all remaining positions on February 9th starting with those with the biggest cumulative return first.
2. Create limit sale orders at +10% profit per stock. Sell 1/2 the shares
3. Create limit sales orders at +20% profit per stock. Sell 75% of remaining shares.
4. Create limit buy orders at -10% profit per stock. Double shares. Adjust future buy and sell orders based on new average price. For the first double, I will not wait any trading days. After I have 2,000 or more shares of stock, price must be down an additional 10% plus I can not have purchased this stock within 5 days.
My initial thoughts are that low priced stocks usually move at higher percentage points (due to small fractional moves equally larger percentages). I fully expect a lot of these stocks could clear their 10% gains early and am hopeful that even the early bad performers will clear once they have been cost averaged down to more volatile numbers.
I will track this daily to show the current status of things as this progresses. Hopefully I don't make a complete fool of myself.
Here are the stocks that were purchased (1,000 shares of each):
Acorn Energy, Inc. (ACFN) - Price = $2.20
Actions Semiconductor Co., Ltd. (ACTS) - Price = $1.70
Advance America, Cash Advance Centers (AEA) - Price = $1.95
Aehr Test Systems (AEHR) - Price = $2.27
Anthracite Capital Inc. (AHR) - Price = $2.32
Arbor Realty Trust, Inc. (ABR) - Price = $2.96
Benihana Inc. (BNHNA) - Price = $2.55
BMB Munai Inc. (KAZ) - Price = $1.52
Books-A-Million, Inc. (BAMM) - Price = $2.72
Callon Petroleum Company (CPE) - Price = $2.81
FreeSeas Inc. (FREE) - Price = $1.80
Gramercy Capital Corp. (GKK) - Price = $1.52
Grupo Financiero Galicia SA (ADR) (GGAL) - Price = $2.17
KapStone Paper and Packaging Corp. (KPPC) - Price = $2.58
NN, Inc. (NNBR) - Price = $2.87
Qiao Xing Mobile Communication Co., Ltd. (QXM) - Price = $2.78
Qiao Xing Universal Telephone, Inc. (XING) - Price = $1.88
Quiksilver, Inc. (ZQK) - Price = $2.04
Ruth's Hospitality Group, Inc. (RUTH) - Price = $2.18
Silicon Motion Technology Corp. (ADR) (SIMO) - Price = $2.66
Soapstone Networks Inc. (SOAP) - Price = $2.98
Star Bulk Carriers Corp. (SBLK) - Price = $3.09
Telestone Technologies Corporation (TSTC) - Price = $2.30
TXCO Resources Inc. (TXCO) - Price = $2.41
Valassis Communications, Inc. (VCI) - Price = $1.60
Warren Resources, Inc. (WRES) - Price = $2.72
Total cost: $58,550
Edited to show change of philosophy as well as the stocks purchased.
With that in mind, I used Google Stock Screener to parse out stocks that met the following criteria:
1. Market Cap of less than 300M
2. PE ratio of 5 or less
3. Stocks that lost at least 40% of their value over the last 52 weeks
4. Current pricing is between $1.5 and $3.5
5. Price/Book was 0.60 or lower
This strategy is aimed at finding the little stocks that we have not all heard of that could be poised for huge gains in 2009.
I plan to buy 1000 shares of all the stocks that met this criteria the first thing Friday morning (Full list and today's close listed). Estimated cost is approximately $97,460.
Here will be my no-thought strategy:
1. Buy/Sell these stocks for 1 month. I will purchase all positions on January 9th (Friday) and will purchase then in a reverse fashion (ie first purchase stocks that are down in early trading). I will sell all remaining positions on February 9th starting with those with the biggest cumulative return first.
2. Create limit sale orders at +10% profit per stock. Sell 1/2 the shares
3. Create limit sales orders at +20% profit per stock. Sell 75% of remaining shares.
4. Create limit buy orders at -10% profit per stock. Double shares. Adjust future buy and sell orders based on new average price. For the first double, I will not wait any trading days. After I have 2,000 or more shares of stock, price must be down an additional 10% plus I can not have purchased this stock within 5 days.
My initial thoughts are that low priced stocks usually move at higher percentage points (due to small fractional moves equally larger percentages). I fully expect a lot of these stocks could clear their 10% gains early and am hopeful that even the early bad performers will clear once they have been cost averaged down to more volatile numbers.
I will track this daily to show the current status of things as this progresses. Hopefully I don't make a complete fool of myself.
Here are the stocks that were purchased (1,000 shares of each):
Acorn Energy, Inc. (ACFN) - Price = $2.20
Actions Semiconductor Co., Ltd. (ACTS) - Price = $1.70
Advance America, Cash Advance Centers (AEA) - Price = $1.95
Aehr Test Systems (AEHR) - Price = $2.27
Anthracite Capital Inc. (AHR) - Price = $2.32
Arbor Realty Trust, Inc. (ABR) - Price = $2.96
Benihana Inc. (BNHNA) - Price = $2.55
BMB Munai Inc. (KAZ) - Price = $1.52
Books-A-Million, Inc. (BAMM) - Price = $2.72
Callon Petroleum Company (CPE) - Price = $2.81
FreeSeas Inc. (FREE) - Price = $1.80
Gramercy Capital Corp. (GKK) - Price = $1.52
Grupo Financiero Galicia SA (ADR) (GGAL) - Price = $2.17
KapStone Paper and Packaging Corp. (KPPC) - Price = $2.58
NN, Inc. (NNBR) - Price = $2.87
Qiao Xing Mobile Communication Co., Ltd. (QXM) - Price = $2.78
Qiao Xing Universal Telephone, Inc. (XING) - Price = $1.88
Quiksilver, Inc. (ZQK) - Price = $2.04
Ruth's Hospitality Group, Inc. (RUTH) - Price = $2.18
Silicon Motion Technology Corp. (ADR) (SIMO) - Price = $2.66
Soapstone Networks Inc. (SOAP) - Price = $2.98
Star Bulk Carriers Corp. (SBLK) - Price = $3.09
Telestone Technologies Corporation (TSTC) - Price = $2.30
TXCO Resources Inc. (TXCO) - Price = $2.41
Valassis Communications, Inc. (VCI) - Price = $1.60
Warren Resources, Inc. (WRES) - Price = $2.72
Total cost: $58,550
Edited to show change of philosophy as well as the stocks purchased.
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