Billyjoes Top 10 Cheap Stocks

[billyjoe]

Week 3 Cheap Stock Portfolio is History

That's right. It ended quickly today on a positive note for the CSP.

MOSS gapped up at the open , we added our reinvestment $$. It then stopped out , but with a gain for the day. Our starting amount was $306,591 we ended up with :

MOSS---$310,877

APLX also gapped up at the open, we added our reinvested $$. It hit the 2% stop , but gained for the day. We started with $512,041, but since the added money was stopped by 2% we ended up with :

APLX----$510,117

ACTU opened up .05 . It never was stopped. Sold at a .04 gain for the day. We started with $101,493 added reinvestment funds of $105,330 total starting funds $206,823 we finished with :

ACTU----$207,712

Grand Total $1,028,706 we allow $300 for 29 transactions giving us a profit of 2.84%

ACTU was our lowest priced stock at 3.35 and was sold at 3.44 having never been stopped, but the Superstock of the week was again GROW, stopped on Thursday with a gain of 18.85% from it's opening price and a gain of 15.99% with the proceeds from 2 other stocks reinvested in it.

billyjoe

[billyjoe]

Thursday Cheap Stock Portfolio Week 3

We go into Friday with our 2% stops in place looking good with all the $$ riding on these 3 stocks :

APLX---$307,636 from appreciation and reinvested cash from HOM (97,414) and RWC(94,000) we also add $105,330 from GROW and $99,075 from CYBS for a grand total :

---------$512,041


MOSS---$201,261 from appreciation and cash from TLF (94,004) plus from GROW we add $105,330 for a total :


---------$306,591


ACTU----$101,493 from appreciation plus from GROW we add $105,330 total:


---------$206,823

Which adds up to $1,025,455 . We will make a profit even if all positions are stopped at 2% under opening price or I could close it all now with a profit of 2.5% after commissions, but I won't.


billyjoe

[billyjoe]

Sold CYBS at 7.50 reason ---failure to perform lost 1% ,funds to reinvest tomorrow $99,075 . We've still got 3 stocks left and they look good.

MOSS APLX ACTU

billyjoe

[billyjoe]

News Flash GROW stopped at 12.42 just after we put all that new money in it. The overall gain is 18.85% , not bad I wish it could have lasted another day. We have $315,988 to reinvest tomorrow. Remaining stocks : MOSS APLX ACTU CYBS.

billyjoe

[billyjoe]

Mr.Market,
Low priced , under $15.00. I tried screening under $15.00 with low p/e , but it eliminated most other guidelines I was looking for. However , all other factors being equal , a low p/e could get a stock into the top 10 if it's on the bubble.

billyjoe

[mrmarket]

When you say cheap, do you mean low priced stocks or stocks with low PE's?

[billyjoe]

TLF stopped for a 6% loss

Today we had $94,000 from RWC sale go to GROW at open. GROW was up 9.474% from our initial purchase so we added $109,474. Our $203,474 went up another 8.479% today so we now have $220,727 in the position and will add more $$ at open tomorrow.

We also took $94,000 from FPP sale and added to APLX at open. APLX was up 2.07% from our initial purchase price at todays open so we added our $102,071. Our total was $196,071. APLX was up .7246% today and we have $197,492 in the position. We will add more at open tomorrow.

We have 3 remaining positions open in addition to GROW and APLX. They are CYBS down .8% , ACTU down 1.5% , and MOSS up 3.72%

No money will be added to the CYBS and ACTU positions tomorrow.

COGO stopped at a 1% loss. Its $99,000 will be added to our leading stock GROW at open tomorrow.

HOM stopped at a 2.6% loss. Its $97,414 will be added to APLX at open tomorrow.

TLF stopped at a 6% loss. Its $94,004 will be added to our 3rd winner, MOSS at open tomorrow.

Stops will be set at 4% of tomorrows opening price.

billyjoe

[RL]

Billy this showed up on my e-mail ? Looks like a free sight? Did not have time to Investagate www.positionplays.com

[billyjoe]

HOM stopped at 5.65 for 2.6% loss

COGO stopped at 5.94 for 1.0% loss

six remain GROW MOSS APLX CYBS TLF ACTU

billyjoe

[billyjoe]

Greb and Ski,
I'll also post results of same portfolio had I just held them and sold those stopped out. I'm liquidating at the end of each week and won't hold the same stocks unless they make the top 10 the next week. Some have repeated (HOM,GROW) some will leave for a while and come back (COGO) , but most will go away for good after one week. The cash value will be rolled over and calculated at the end of the 10 week period. Because of my weak mathematical skills, however, will use the $100,000 per stock $1,000,000 per portfolio basis to start each week.

I've been tweaking the stops, but for a while it will remain Mon.--7% Tues.--6% Wed.--5% Thur.4% Fri.--2% of that day's opening price. If I'm right when the winners start running the stops won't get them. If they're stopped Fri. they should still have a nice gain. So as not to repeat the HOM disaster and to avoid pre-market losses , sell limit orders are also in place.

billyjoe

[skiracer]

Ski. Wonderful points here. I've been thinking the same about Creme of the Crop. It's a lot of effort and risk when you're towards the end of the system. Well, when I say a lot, how bad can it get? As low as I allow with stops I suppose. The upside on a real nice mover with 20 positions would be great. But your point of 'is it worth it at the end of the day' really is a good one. I'm not so sure it is, and would be interested in hearing others' views on it. At the end of the day, it's a fancy way of taking MM dump candidates and watching weak ones drop off until you've got a large exposure to one of them. Why not simple watch them all and stalk the smartest entries and limit the downside?? That seems to be a clever thing to do.

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.

[skiracer]

Billyjoe
I am intrigued by your idea and will look forward to any conclusions after several trials. Those conclusions will be specific(i think) to your screens and personal bias in choosing the stocks. I always find the one week period to be difficult in the contests on this site. One week is to long for a day trader and to short for a buy and hold guy/gal.

It may be instructional to add several other studies:

1.Buy and hold all ten for the whole period ie the first weeks picks. see how the outcome compares .

and/or

2. At the end of a week keep stocks still actice and divide the cashed out $ into the next weeks picks. You could keep stops on the rollover stocks set somewhere above the original buy price but a little looser than day to day drops. ie fixed at some % above buy...trying to make it act more like you might let your own portfolio run.

there may be other ideas out there.

Dont you like how Im trying to create more work for you

Greb,
That's what this is all about isn't it. Talking about it an offering suggestions and questions relating to the exercise. Billyjoe, I was curious as to what you are using as stops. Could you explain them again for me. I know that you change them as some get stopped out and the week progresses with more money left in the remaining positions. Thanks.

[spikefader]

Billyjoe,
I'm not knocking the exercise because after going through them they provide a better insight into whether or not it would be worth it to even bother trying to do something like this in a real portfolio funded with real money. If you were investing the amounts you have allocated in each of the stocks at the end you would have a great deal of your capital in one or two stocks which in your exercise might provide a gain of 6/8% for the entire endeavor. Aside from all the work, and monitoring all of the positions as you eliminate down to the final one or two, do you feel that it would be worth doing it in realtime as opposed to finding individual setups. Personally I think it would be alot of money and work on the line for the return that you're going to end up with at the end. I feel the same way about Spikes cream of the crop exercise so I'm not singling out yours in any way. I just don't see the return for the expenditure of time, risk, and moneys involved over the course of the entire exercise. But that's just my own opinion and not meant to be taken in a derogatory fashion towards either one of the exercises. I was interested in hearing your unbiased feelings on whether or not you thought it to be a worthwhile method of using your capital after having gone through it over the last couple of weeks.

Ski. Wonderful points here. I've been thinking the same about Creme of the Crop. It's a lot of effort and risk when you're towards the end of the system. Well, when I say a lot, how bad can it get? As low as I allow with stops I suppose. The upside on a real nice mover with 20 positions would be great. But your point of 'is it worth it at the end of the day' really is a good one. I'm not so sure it is, and would be interested in hearing others' views on it. At the end of the day, it's a fancy way of taking MM dump candidates and watching weak ones drop off until you've got a large exposure to one of them. Why not simple watch them all and stalk the smartest entries and limit the downside?? That seems to be a clever thing to do.

[grebnet]

My thoughts

Billyjoe
I am intrigued by your idea and will look forward to any conclusions after several trials. Those conclusions will be specific(i think) to your screens and personal bias in choosing the stocks. I always find the one week period to be difficult in the contests on this site. One week is to long for a day trader and to short for a buy and hold guy/gal.

It may be instructional to add several other studies:

1.Buy and hold all ten for the whole period ie the first weeks picks. see how the outcome compares .

and/or

2. At the end of a week keep stocks still actice and divide the cashed out $ into the next weeks picks. You could keep stops on the rollover stocks set somewhere above the original buy price but a little looser than day to day drops. ie fixed at some % above buy...trying to make it act more like you might let your own portfolio run.

there may be other ideas out there.

Dont you like how Im trying to create more work for you

[billyjoe]

Ski,
Yes, I'm going to figure in commission costs so it will be as realistic as possible . Each week's gain/loss will be rolled over to the next week also.

billyjoe