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Home - What is Poormans?
Poormans Investment Strategy is based primarily on GROWTH FUNDAMENTALS and technical analysis. Growth fundamentals are based on Biblical principles of good stewardship such as debt management and consistent growth of both revenues and earnings. Potential database stocks are primarily identified manually at time of earnings release and which meet Poorman's criteria (ideal is 40% annual growth and a unique criteria: Earnings x 100/Price or E/P and preferred ratio of 1.40 or higher). About 5 - 10% of the earnings released meet Poorman's criteria and are retained and tracked on a Telescan watch lists for regular review of charts and application of technical analysis. Tools used include Candlesticks, Moving Averages, Volume Changes, RSI etc with data extracted from sources such as Excite, Quicken, Stockcharts.com and Highgrowthstocks.com. Approximately 100 stocks are maintained in Poorman's database and updated weekly. In case of portfolio management, performance is normally reduced by 3% for fees. For quarterly performance since 1999, see bottom of page. New subscribers should start with the "MIDWEEK ALERT" and keep an eye on "Model Trading Strategy" -- posted most evenings before the next trading day.
OBJECTIVE: Intermediate term investing (2 weeks to 6 months) with annual gains exceeding the S&P 500 index. For more detailed information see: "About Poormans", "12 Point Criteria", and "Sample" ( sample "weekly update" and "mid-week alert"). Best viewed with HTML setting rather than plain text.
AVERAGE ANNUAL GAINS: 8 - 1 Yr model portfolios from 1999 - with + 45.2% average gains. Investment Model Objectives: Intermediate term - 2 weeks to 6 month target hold in a positive market and beat S&P 500. Average trades: 1 sell and 1 buy per week or less. For 5 year average: DOW + 5.4%; S&P 500 + 4.6%; Nasdaq + 5.8%; Russ 2000 + 9.8%. AVG. MODEL RETURN FOR LAST 5 YEARS: + 24.0%.
LATEST UPDATED REPORT POSTED:
14 MAY: MID-WEEK ALERT
10 MAY: WEEKEND UPDATE
7 MAY: Stock of the Week (some past samples - NM, BPHX, GPOR, NTWK, CDS).
CANDLESTICK POSITIVE INDICATORS AND GOOD CHARTS FOR: FRI
DATABASE: EXM, GU, INTC, KRSL, NFDA, PDO, SOL, SOLF, TBSI, TRA, UFPT,
WATCHLIST (Not researched): CTIB, FDS, ATPG, SFY, CVS,
INTERESTING CHARTS: ARTW, AUY, NM, SNHY, WPCS, XIDE, IAG, NGLS, FOE, SKH (CWH?).
$100,000 INVESTMENT 2007 MODEL from 1 January 2008: 108,641 YTD (+ 8.6 %) and + 1.9 % for day and up 4.2% for LAST week and 7.1% for the previous 2 weeks. Sample stocks: CSIQ, HPQ, LMIA, TGB. Cash balance: $8,147.00 No Commissions - (Model also has Mutual Fund CGMFX and CGMRX have regained positive gains now for 2008 after being down as much as 10% earlier in 2008.
$100,000 INVESTMENT 2007 MODEL from 1 January 2007: 97,359 YTD (- 2.7 %). Sample stocks: AEY, BTJ, CDS, HPQ, TGB. Cash balance: $28,662. Commissions of $10. per trade included.
COMMENTS: Hedge fund average return for 2004: + 3.88% AND 7.61% for 2005 AND 11-13% gain for 2006 as I couldn't find a definite figure. For 2007: The Hennessy Hedge Fund Index lost 2.5% for January 2008 (fourth worst month ever). Gains through July 2007 were 5.40% for hedge funds but they lost 1.3% for August, and first loss in nearly a year.
INDEXES - THU Close: (updated 50 DMAs on 5/3/08 ) Click on index to see chart - stockcharts.com
Nasdaq 2533 + 1.48 % ( 2321 is 50 DMA); a/o 12/31: + 9.1% for 2007 Top Gainer
DOW 12992 + 0.73 % (12471 is 50 DMA); a/o 12/31: + 6.4% for 2007
S&P500 1423 + 1.06 % ( 1349 is 50 DMA); a/o 12/31: + 3.5% for 2007
Russ2000 743 + 0.99 % ( 697 is 50 DMA); a/o 12/31: - 2.7% for 2007
Poormans $100 Model - Summary: a/o 10 MAY 2008: + 4.2 % GAIN(for week )and + 5.1 for 2008 YTD,
vs Nasdaq - 1.2 % (- 7.9 % ytd); S&P 500 - 1.7 % for week (- 5.5 % ytd)! (Russ 2000 - 6.0 % year to date.)
Historical Quarterly Returns for $10K/100K MODEL(accumulative year to date by year) - since 1999.
Qtr 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
1Q 35.3% 92.9% -8.8% 11.4% -1.2% -1.7% -5.0% 14.4% +2.4% -14.5%
2Q 34.5% 0.0% 33.8% -16.5% +13.7 -4.7 6.9 -12.7 -0.4
3Q 12.7% 8.9% -17.1% -15.6% + 9.8 -2.2 22.9 - 7.6 +5.2
4Q 81.7% -30.4% 15.5% 0.9% +33.1% +44.9 9.7 + 2.2 -9.9
YR 164.2% 71.4% 23.4% -19.6% +55.4% +36.3% +34.5% - 3.6% -2.7% and 39.9% avg gain for last 9 years PTL
Note: Gains based on $100K model except $10K model used for 1999 & 2000 for period 1 Jan to 31 December - year to date returns. Multiple models were used with different time frames prior to 2001 ($100K Apr to Apr and $1M model Sep to Sep). In 1999 and early 2000 (year of .coms), virtually no .com stocks were used in the model, as most of them didn't have earnings. Newsletter started in April 1996.
KEY THOUGHT: "The servant who received the bags of gold began immediately to invest the money and soon doubled it." MATT 25:16 (NLT)
MY STRATEGY: "....not seeking my own profit, but the profit of many, that they may be saved." I Corinthians 10:33 (NKJV)
Subscription Information:
Current renewal/NEW SUBSCRIBERS: $15 for 1 Months (MAY 08) - Priced at $25 per month; $125 for up to 6 months(thru OCT); 10- MO Special Rate: $215. (Good through FEB 09) Send me an e-mail message stating, "the check's in the mail". and that starts your subscription and I will give you password access to the "members section". Products normally include website daily updates, mid-week alerts, and week end updates. Mid-week and weekly updates are posted to the website and then sent out by e-mail distribution. -To see a sample report, just click on SAMPLE NEWSLETTER.
Mail checks to:
Bruce Brotnov (bruce@poormans.com)
1111 Richardson Ave (Be sure to get all 4-1s as the postmaster returns it with only 111 in the address)
Lewiston, Idaho 83501
Links of Interest:
Spiritual Help (BillGraham.org)
Futures (Nasdaq & S&P 500 Indexes) - see Strategy for CNN Money link.
Customer Service Programs
CHAT - On this website (as I hang out there quite often in addition to unnamed forum)
Blog site interview of Poorman as of 6/21/2006 | 