Did You Know...
Over 95% of professional money managers in the United States today fail to achieve a return for their investors equal to the returns of the Dow Jones or the S&P 500. Why? They buy as a pack and they sell as a pack. They are emotionally unable to stray from what the majority is doing. As we all know, the majority can be wrong.
Ever notice that most brokerage firm analysts recommend stocks within 10% of their tops? They also never tell you when to sell. Their sell recommendations are only 5% in number of their buy recommendations. Why? Because they get investment banking fees from companies, and you don’t want to put a sell on a company that’s paying you a fee.
The greatest trading profits are made by buying those companies whose asset structures, debt equity ratios, and corporate structures are solid, but for one reason or another, their stock price has been wiped out. The Street is throwing them away because once a company encounters difficulty, no institution at the end of the quarter, and certainly year end, wants to show them on its position listing.
If you want to make money, big money, buy that which is being thrown away. But first you must be certain that there is merit in the company, that true value still exists over and above the price at which the company is selling. This is what we do. We analyze the company and determine that there is still value. We assure ourselves that this will not be a bankruptcy. We wait for the institutions to complete their destruction of the stock. We watch technically for when we believe the reflex rally will begin. Then we bring the idea to you. The returns can be very big off the bottom. There is very little competition for what we at valuestockplayers.com do. Analysts do not dare recommend stocks at the bottom. As stocks approach their tops, analysts pile on. They perceive correctly that this is when things look brightest. Of course they do, but the good news is already reflected in the price of the stock. We e-mail you ideas when the perception is at its bleakest. We are protected because, in our analysis, we are looking at true value: is there cash? What is the book value? What is the debt to equity ratio? What are the sales forecasts? We listen to what management is saying. VSP checks to see if management is buying on the open market. We check to see what competitors are saying about the company. We listen to vendors when they talk about the company. The last people we listen to are the analysts on Wall Street. Analysts are biased. They have private agendas that they are concerned with. These agendas include protecting investment banking business, and the potential of acquiring additional investment banking business
There’s an old saying: if you always do what you always did, you’ll always get what you always got. Of course there’s also insanity, which is doing the same thing over and over again expecting a different result. If you are unhappy with your results in the market, then you must try something different. Our approach is different and remains unique. When and if the street adopts our approach, we will move to something new.