Thread Rating:
  • 0 Vote(s) - 0 Average
  • 1
  • 2
  • 3
  • 4
  • 5
The Prime System
#1
Warning, there might actually be something into this! Long winding presentation, but if you manage to sit through it, there are a few interesting points:
  1. Many stocks (even some industries) have cyclical patterns, meaning some quarters (or even months) do much better in terms of revenues and profits compared to others, see the chart of Aeropostale's quarterly revenue as the tumb nail appendices below
  2. One would expect that the "rational" stock market prices this in, but actually this isn't the case, especially with lesser known names
  3. These lesser known names only come in the news when they perform very well, piling in buyers
  4. The Prime System plays on this, piling in money in these stocks in the period when they do well, selling when that period ends
  5. The returns are often several fold those of buying and holding these (the latter even delivers negative returns on some)
  6. Holding stocks for the good months only also reduces risk, as your exposure to the market is a lot less
Here are some of the stocks that have done well with this system
  • MGIC
  • CENX Prime period + 33.01%, just 2.98% rest of the year
  • ELN +70.87% prime, +27.8% per year last 10 years
  • HEES +89.7% prime four years just 19.75% a year
  • VCLK example prime period returns hugely profitable, buy and hold not
  • ANF the same, prime period +104% versus a loss buy and hold
  • ULP -63% since 2007 but prime period +50%


Attached Files Image(s)
               
Reply



Forum Jump:


Users browsing this thread: 1 Guest(s)