Billyjoes Top 10 Cheap Stocks

[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

[Runner]

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]

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

[billyjoe]

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

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]

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]

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]

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]

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

[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]

Ski,
Stops on Friday are always 2% of original purchase price unless it has advanced during the week. HOM Monday opened at 5.84 today closed at 5.76 and stop is 5.72. Stops during the week are 7,6,5, 4 and 2%. In cases where we have a winner or 2 up over 5% before Friday I'd sell a stock such as HOM to use the cash to reinvest even if it hasn't been stopped. I call it a sell due to non- performance. It can come back next week and be the big winner or Superstock as Spike calls it. On paper I messed up this week when MOSS was down, but not enough to be stopped . I calculated the stop from it's morning open . Then when it was stopped it cost me 9,000 when the max loss for any stock should have only been 7,000 and on a Wednesday it should have been a max loss of 5,000 or 5%.

billyjoe

[billyjoe]

Friday Week 4 Cheap Stock Portfolio

HOM stopped at 2% remaining funds $98,000. Total cash from 8 closed positions $769,438 . We have 2 open positions APLX and CYBS that aren't moving.

billyjoe

[billyjoe]

APLX stopped cash value $99,431 . CYBS sold cash value $100,139 total cash for week $968,998 or loss for the week of 3.1% . 9 of 10 stopped. Nothing went up more than .7% . We couldn't reinvest in falling stocks. More later.

billyjoe

[billyjoe]

Week 4 Cheap Stock Portfolio Hold and Fold Method

Stocks, End Week Value, %loss/gain

HOM----$98,000---- -2%

GROW---$100,340---+.34%

MOSS---$91,000---- -9%

MED---- $95,929---- -4.1%

SPIL-----$97,603---- -2.4%

RWC-----$100,676--- +.67%

LPSN-----$94,766---- -5.2%

APLX-----$99,431----- -.57%

TLF------$95,893------ -4.1%

CYBS-----$100,139----- +.14%

Grand Total $973,777 loss of 2.7% after brokerage fees

Actually beat the reinvest method this week because of so little upward movement.

billyjoe

[billyjoe]

Week 5 Cheap Stock Portfolio

HOM--5.68 Restores homes after wind , water damage

NUAN--6.77 Speech recognition software

MOSS--5.44 Designs licenses clothes for target stores

RWC---7.98 Wireless 2 way mobile radios

TLF---5.44 Retail and wholesale leather goods

PRFT-- 9.55 Information technology central U.S. states

MED---5.39 Manufactures health and diet products

ENG---6.51 Electrical power systems for petroleum refining

MESA--9.80 Holding company for regional airlines in 43 states

LPSN---4.99 Online customer sales and support

billyjoe