Any stock market investors out there? I was thinking of posting a thread on stock picks but only if there are people who actually play the market..

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There is already one. One which was hijacked by the Aussie tasmanian devil!

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Originally posted by Krypton Any stock market investors out there? I was thinking of posting a thread on stock picks but only if there are people who actually play the market..

Every day from 7-5:30

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Originally posted by Shakka Every day from 7-5:30

What is your strategy? Value, Growth, GARP, CANSLIM, technical, fundamental?

Currently, I'm mostly a Value investor, looking for the undervalued companies. But CANSLIM is a very good system that I'm looking at.

What's your favorite pick? You got target prices? Or do you use trend lines?

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Originally posted by Krypton What is your strategy? Value, Growth, GARP, CANSLIM, technical, fundamental? Currently, I'm mostly a Value investor, looking for the undervalued companies. But CANSLIM is a very good system that I'm looking at. What's your favorite pick? You got target prices? Or do you use trend lines?

what are your picks? lol

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Originally posted by Cyrus King i listen to trance becuase it is beautifully composed like a classical piece of music.... but with beats in it...

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Originally posted by Magnetonium I hardly if ever acknowledge sarcasm from a person I dont know because I ran into serious problems on an undisclosed buying website before.

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Originally posted by Krypton What is your strategy? Value, Growth, GARP, CANSLIM, technical, fundamental? Currently, I'm mostly a Value investor, looking for the undervalued companies. But CANSLIM is a very good system that I'm looking at. What's your favorite pick? You got target prices? Or do you use trend lines?

We run a couple of long/short funds. CANSLIM is a William O'neil strategy, right? I have one of his books at home though I haven't really put it to good use. I think O'neil often ends up being a classic momentum investor, but if your timing is right, it can certainly work. My team and I are pretty much generalists so we will look for good ideas just about anywhere, though our style is about 95% equities and maybe 5% options. We do both a top-down and a bottom-up approach and often use technical analysis in concert with our fundamental research to try and more effectively manage risk and improve our timing. My favorite pick probably changes day-to-day, but we've made great money with Akamai, though the stock has had a huge multi-year run, is getting extremely expensive, and is routinely subject to rumors of new competition. Some of our favorite shorts are in the sub-prime mortgage origination space (which I actually mentinoned on this board about a year ago). However, I cannot recommend short selling to retail investors as the risk is theoretically unlimited. We've been starting to see cracks in the sub-prime foundation for several quarters now and we think things there could potentially get a lot uglier before they get better. Anyhoo...

Most stock markets look overvalued here in my opinion. The US is about to enter a recession, and usually when the US sneezes, the world catches a cold. If you insist on being in stocks, I recommend you stick with value...solid companies that pay dividends, as well as resource stocks with REAL assets backing the companies (oil, gas, gold, silver, etc). There is no shame in staying mostly cash, especially when you can get a juicy 5% guaranteed yield right now.

Bankrate.com shows some banks is offering 6 months CD's that pay around 5.3%

No shame in parking a little cash there until things settle down economically and politically in the world.

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Originally posted by Dopey what are your picks? lol

My favorite one right now is BJS.

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We run a couple of long/short funds. CANSLIM is a William O'neil strategy, right? I have one of his books at home though I haven't really put it to good use. I think O'neil often ends up being a classic momentum investor, but if your timing is right, it can certainly work. My team and I are pretty much generalists so we will look for good ideas just about anywhere, though our style is about 95% equities and maybe 5% options. We do both a top-down and a bottom-up approach and often use technical analysis in concert with our fundamental research to try and more effectively manage risk and improve our timing. My favorite pick probably changes day-to-day, but we've made great money with Akamai, though the stock has had a huge multi-year run, is getting extremely expensive, and is routinely subject to rumors of new competition. Some of our favorite shorts are in the sub-prime mortgage origination space (which I actually mentinoned on this board about a year ago). However, I cannot recommend short selling to retail investors as the risk is theoretically unlimited. We've been starting to see cracks in the sub-prime foundation for several quarters now and we think things there could potentially get a lot uglier before they get better. Anyhoo...

Who has invested in your fund? Did you set it up? I'm looking to take this as my career path, but have no idea how to pursue it.

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Most stock markets look overvalued here in my opinion. The US is about to enter a recession, and usually when the US sneezes, the world catches a cold. If you insist on being in stocks, I recommend you stick with value...solid companies that pay dividends, as well as resource stocks with REAL assets backing the companies (oil, gas, gold, silver, etc).

Value stocks are companies trading below their actual value. Dow Dogs are the solid dividend paying companies. Very simple strategy, easy to follow (Dogs).

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My strategy is value dividend equity positions.

I haven't gotten burned once with this strategy (although I owned Reliant Energy and SBC). The key is to know when to get out (usually when they slash dividends or eliminate them, as I did with SBC when it became AT&T).

I also tend to examine book value of companies which I am really unsure of. But dividend/value seems good. Right now I spotted some companies that do shipping that seem to have very good returns, but haven't invested in them yet.

This strategy requires a long time horizon however.

And its great, because a stock that pays 3% dividends when you buy it can potentially in 5 years or less pay 10% dividends (or more) on your initial investment...

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Originally posted by Krypton Who has invested in your fund? Did you set it up? I'm looking to take this as my career path, but have no idea how to pursue it.

Uh, lots of folks, though I am not allowed to disclose any of that information. Not that it's exciting or telling information. Here--I am an investor for one! I certainly didn't set the fund up--though somewhere down the road I'd love to be the lead portfolio manager. The fund has been in existence since about 1992, though I joined the firm in 2000. I really just fell into the job to be honest, though looking back it was definitely the right choice. Prior to my current job I was working in retail banking--which sucked. The hedge fund world makes me sweat every day, which is both a blessing and a curse!

Setting up a fund takes a lot of legwork--particularly in this day and age with Red FD, Reg SHO, Sarbanes-Oxley, etc. There are more hoops to jump through and more compliance issues, SEC filings and what not that it's really a pain in the ass. Then you have to have a prime brokerage relationship, several trading relationships with sell-side brokerage firms. It's not that it's difficult, it's just that there is a huge laundry list of things you need in place just to get things off the ground. Though, that could be a bit of an overstatement as that pertains more to our mutual fund than our hedge fund, which is much less loosely regulated. Then again, there are always tons of legal, audit and accounting fees that have to be paid, yada yada yada. Just a lot of busy work.

One thing I really like about our company is that we are a small team so we work very closely together and everyone is intimately involved in our strategy. We have a team of 3 of us that basically manage the portfolio, do the research, trade, etc. Then just a couple of others in the firm to handle things like compliance, PR, operations, etc. And then of course someone to answer the phone.

First thing you need to get started is money of course--not necessarily your own, but definitely some investors. I'd say it would be hard to run a fund for a job without $10M at the very least. And even then, that's really going to be a tight ship. At $25M, a fund will generate around $250K/year in advisory fees to pay overhead, salaries, rent, etc. The real money is made at the end of the year if you made good money for your clients.

How much time do you guys spent a day on this stuff? Or more clear, how much time did you guys spent in the beggining when you went with the idea of doing this? I'm busy with other business projects now, but i just wanted to get a general idea on this.

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Originally posted by Kapedan How much time do you guys spent a day on this stuff? Or more clear, how much time did you guys spent in the beggining when you went with the idea of doing this? I'm busy with other business projects now, but i just wanted to get a general idea on this.

It took me 3 months of reading, researching, sampling, developing a trading strategy, and learning how to implement it. That's if you are good at numbers crunching, charting, and business.

The easiest strategy I know of it the Dogs of the Dow, and charting.

Dogs of the Dow:
1. Screen for the top 10 highest dividend yielding stocks on the Dow Jones every January 1.
2. Buy equal amounts of each stock.
3. Every January 1, sell the losers, and replace them with the next dividend yielders for the next year.

Charting (Technical Analysis):
Start with a graph of the stocks movement over the past year (52wks).
1. Draw a line from a particular low, and connect the next low to form a support line.
2. Draw a line from a particular high, and connect the next high to for a resistance line.
3. Buy when the support line is touched.
4. Sell when the resistance line is touched.
*Support & resistance reliability is based on how many times each has been touched and not crossed. The more touches, the more reliable the trend is.

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