Billyjoes Top 10 Cheap Stocks

[skiracer]

Billyjoe,
Is the stop on HOM 4% from todays closing or 4% from your entry. I didn't understand how you have it figured only .04 from stopping out tomorrow if your entry was at $5.84 on Monday either way.

[billyjoe]

Stopped today MED remaining value $95,929 SPIL remaining value $97,603.
We have 3 stocks left HOM , which has a 1.4% loss and is .04 from stopping out tomorrow. APLX has a 1.4% gain and CYBS has a .4% gain .


Cash on hand $671,438 . We will wait until after opening to see if it's worth putting the cash in either APLX or CYBS.

billyjoe

[billyjoe]

TLF sold for $95,893, MOSS stopped $91,000*, GROW stopped value of funds including reinvestment $145,350, RWC stopped value of funds including reinvestment $145,663

Total Cash $477,906 will not be reinvested at market open

5 positions active : HOM -1.7%
-------------------MED - .53%
-------------------SPIL - .7%
-------------------APLX - even
-------------------CYBS -1.1%

Stops tomorrow 4%. Maybe we'll have something to reinvest in tomorrow.

billyjoe

* mistake made on MOSS cost us $4000. We calculated stop at 5% from today's open rather than original purchase price Monday

[billyjoe]

GROW has been stopped at 5% loss from today's open. We started with $105,617 added $47383 from sale of LPSN was stopped for remaining value of $145,350. Of the 6 remaining stocks , only 1 is up from the Monday purchase price. We may have no good stocks to reinvest our cash in.

billyjoe

[billyjoe]

Not looking good today. We put $47383 from the sale of LPSN into RWC at open. RWC opened up with beginning value $105,946 add $47,383 bringing total to $153329 this hit the 5% stop we are left with $145663 to reinvest tomorrow.

We put $47383 from sale of LPSN into GROW at open . GROW opened up with beginning value of $105,617 add $47,383 bringing total to $153,000. It has dropped but not stopped yet.

MOSS is stopped leaving us with $91,000 to reinvest

Very little on the upside today.

billyjoe

[billyjoe]

LPSN stopped at 6% loss. Of the remaining 4 advanced 5 declined. Our best so far GROW +5% RWC+ 3.2% . Stops tomorrow 5%. Will put the $94,766 from LPSN in equal amounts GROW $47,383 and RWC $47,383.

billyjoe

[billyjoe]

At market Close . Not much movement, 3 advanced , 4 declined , 3 unchanged, none were stopped at 7%. Tomorrow 6% stops.

billyjoe

[billyjoe]

Week 4 Cheap stock Port

Price Close Friday / Stock / Open Monday / Stop

5.74-----------HOM---5.84---------5.43

11.40---------GROW---11.75-------10.93

5.91----------MOSS---6.00---------5.58

5.67-----------MED----5.65---------5.25

5.73----------SPIL-----5.84---------5.43

7.08-----------RWC----7.40---------6.88

5.35----------LPSN-----5.35---------4.98

7.07----------APLX-----7.03---------6.54

5.60-----------TLF-----5.60----------5.21

7.48-----------CYBS----7.22---------6.71

None are stopped yet , more later


billyjoe

I herd once that institutions are more attracted to stocks over 10.00 I think not sure if this is correct or not. Over the last 3 weeks the S$P500 has gained 1.79% so your just slightly under the S&P. Now I don't know why this happens or if it is just a random thing. I've noticed many cheap stocks seem to move up when the broad market is tanking. Wonder if anybody else has noticed this? Heck I often think that if a stock is in a nice trend you could hop on and try to run with it. A car traveling at 200 mph is harder to stop than a car traveling 20mph. The 200mph car will show signs of slowing down before it reverses, but not all the time. Even some that drop like a rock bounce and accelerate in the same direction. Notice Mr. Markets stocks. notice that all he does is hop on the 200mph car. Yea some will hit the wall and some will slow way down. But how many cars is he driving?

[billyjoe]

Runner,
I see your point, but with these stocks about 7 in 10 are stopped out usually at 5-7% loss in the first 3 days of the week. There's usually 3 good ones in the bunch , but usually not the ones I'd have thought. The one's that start advancing by Wednesday usually keep running and make it until Friday when the 2% stop gets them. If this trend continues maybe the smart thing would be to stop paper trading and switch to real trading after the good stocks surface at the middle of the week, then sell them shortly after open on Friday if the market looks bad that day. So far HOM has been the only stock that gapped down significantly pre-market. My stops aren't technically trailing stops, but they are in the sense that in addition to being gradually tightened from 7% to 2% they are also based on each day's opening price not the original Monday open.
One question that I haven't researched yet is whether this would work with any 10 stock portfolio in a one week time period. Maybe nothing is gained by trying to start with good fundamental stocks. Perhaps any group of 10 stocks will have 3 good gainers in an average week.

billyjoe

Billyjoe, just was looking at your picks and not bad looking. Something I'll often do is take partial profits on my stock when it moves in favor based off my initial stop.

Here was a trade I did this week on NDAQ. I had a little over a 1 point risk on it. Once this stock moved up one point I locked in some gains and now I'm trailing the rest. Conservative approach sure but just a simple technique. Now if you had 500 shares and once stock hits initial risk target sell 250 shares and hopefully ride the rest with a stop but once profits are taken try to not take a loss and worst case a scratch or break even. Now gaps can hurt but that is part of the game. Not sure if this makes sense but let me know what you think.

[billyjoe]

Week 4 Cheap Stock Portfolio Starting Dec.5,2005

Here's our new top 10 with mostly familiar names

1.GROW--11.40--registered investment advisors

2.HOM---5.74--home restoration after wind, flood damage

3.MOSS--5.91--designs clothes for target stores

4.MED---5.67--health and diet products

5.SPIL---5.73--Taiwan semiconductor testing,packaging

6.RWC--7.08--wireless mobile radios

7.LPSN--5.35--online software for internet sales

8.APLX--7.07--software for management of budgeting,forecasting

9.TLF---5.60--retail leather stores

10.CYBS--7.48--electronic payment for businesses

billyjoe

[billyjoe]

Week 3 Cheap Stock Portfolio

Our reinvesting in the best stocks method ended the week up 2.84%. Lets see how the hold em or fold em method did with the same stocks :

Stock------ Open Mon. --- Stopped or Sold Price---- Dollar Amt.--Loss/Gain

GROW-------10.45---------12.42-----------------$118,852----+18.85%

MOSS--------5.38----------5.86-------------------108,922----+8.92

HOM---------5.80----------5.65--------------------97,414----- -2.6

APLX--------6.76----------7.30--------------------107,988-----+7.99

CYBS--------7.57----------7.50---------------------99,075----- -1.0

TLF----------5.17----------4.86---------------------94,004----- -6.0

RWC---------6.45----------6.16---------------------94,000----- -6.0

COGO--------6.00----------5.94---------------------99,000----- -1.0

ACTU--------3.35----------3.44---------------------102,687-----+2.69

FPP----------7.79----------7.13----------------------94,000----- -6.0

Total funds started $1,000,000 ended with $1,015,942 take out $300 for 29 trades we have $1,015,642 or a gain of 1.56% good but not as good as reinvesting into the best performing stocks which yielded 2.84%.

New Cheap Stock Top 10 List Saturday

billyjoe


"if it's stupid, but it works, it ain't stupid"

[spikefader]

Week 3 Cheap Stock Portfolio is History
CSP Grand Total $1,028,706 we allow $300 for 29 transactions giving us a profit of 2.84%
billyjoe

Nice work

[spikefader]

Spike,
I can see that it's alot of work an am amazed at how thorough you've been with your exercise. I just don't have the time to do that. I think there will be weeks where the outcome might be phenominally high but there is always the risk factor and it becomes alot of money. I know you keep your stops close and tight an in the best spots but they still add up as they get stopped out and you're left with a couple of positions that you're relying on to stay on the + side. I do think it is a decent method and can and will work but it still is alot of work and alot of capital at risk. Anyway it's always good to take a close look at it to see whether or not it is worthwhile. I wouldn't have thought of it myself until you guys mentioned doing it. It's all a learning experience so it's all good.

Yep, agree

After going through the motions, and watching how Creme compared to the system I did for IIC's Top 100 (over in his thread), I gotta say I like that way a whole lot better; much much less work, much less risk cuz you've got diversity the entire time, AND not only that but it's more profitable despite some big hits to that port; I'm very impressed with it.

I should actually apply the buy and hold to the Creme from the start and see where that stands relative to IIC's actually and see how they compare.