Tuesday, July 9, 2013

Tables on the Chapter on Big Losers



Table 1: Performance Summary.

No.
Avg. Return
Avg. Annualized
Avg. Holding period
11
-43%
-163%
223 days


Table 2: Source of the stocks:

Sources
Web & publication
Deeply valued
Acquire candidates
Misc. screens
Short squeezed
No.
0
0
0
11
0
Annualized Return



-163%

Stocks



BPI,NTE,SIGA,SIM,
VELT,STEC,IAG,END,
DEER,CRUS,HXM


All the stocks here were from my screens. It is time to evaluate the performances of the screens. I still find the screens with better recent performance still perform better than the average.  

There is not a single stock from the categories of web & publication, deeply-valued list, being acquired or being short squeezed.



Table 3: Score (using the score system in my book Scoring Stocks):

Avg. Score
Foreign Country
Insider’s Purchase
1.86
6
0
Annualized
-216%



The average score is 1.86 (3 is a passing grade defined in my book Scoring Stocks). Four (out of 11) stocks have not been scored.

There is not a single stock with meaningful insider purchase. I have encountered that the lowly-scored stocks with meaningful insider purchase appreciate more than the average. Unfortunately I cannot find any proof in this monitor.

There are too many foreign stocks in this group (not a single foreign stock among the best performers as described in the last chapter). I usually do not trust the financial statements of the smaller, emerging countries. If I skipped these six stocks, I would have saved a bundle. We cannot go back in time, but it is a strong guide for the future. I do not know why I still bought foreign stocks as they did not perform well in the last monitor.
.
Luckily I did not place double bet on any of these losers.


Table 4: Sectors:

Sector
Tech
Miner
Health care, equip and drug
Misc.
No.
4
3
1
2
Annual. Return
-128%
-131%
-34%
-734%
Stocks
NTE,VELT,
STEC,CRUS
SIM,IAG
END
SIGA
BPI,HXM

Miners are not doing well in this period.  Watch out for this sector as it flows with the global economy. Most miners are foreign companies. I do trust the financial data from Canada and Australia.

Technology companies are not doing well. However, we have some technology companies included as the top performers as described in the last chapter. I rate Tech a neutral. Buy those tech companies with high scores and good outlooks.

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