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Our Philosophy
StocksAtBottom.com's Philosophy
StockAtBottom.com's philosophy is very simple,
and is based upon several decades of experience. SAB looks for the finest
entry opportunities available for you when a stock has been crushed in the
market. Only at that point, will SAB write up the stock for your perusal.
SAB does not write up a Coca-Cola at 50 times earnings, when all of Wall
Street loves it, and then lie back and hope that the future is an
extrapolation of the past. The future is never an extrapolation of the
past. Usually, what works big in one year, is what hits rock bottom in the
next.
You only have to look at the Internet
Revolution of the last three years. Individuals and institutions
representing individuals committed over one trillion dollars to the
Initial Public Offerings of these stocks. That trillion dollar capital
raise is now worth less than $ 50 billion, and seemingly going lower. If
you are an investor in the Internet, you probably lost over 95 percent of
your investment dollars. Last year, there were over 200 NASDAQ traded
stocks selling at more than $ 100 per share. Recently, there were only
eight such stocks.
StocksAtBottom.com eliminates much of the
nonsense and pure stupidity that is rampant in the marketplace today. As
an example, there is no such thing as a neutral on a stock, yet every
major brokerage/investment firm in America has the equivalent of such a
term. If a stock is a neutral, then to SAB, it is a sell. Doesn't it seem
logical to you as an investor that you would dispose of all stocks labeled
as "neutrals" and instead put the money into "buys"?
Yet, Wall Street continues to use this term in spite of its foolishness.
Why? It's because Investment Banking firms do not want to embarrass big
banking clients that supply millions in fees.
Remember, never confuse a bull market with
brain power. This means, that a rising market can and will disguise a lot
of bad investment ideas and recommendations. When the market is going wild
on the upside, it is easy to make money. On the Street, we call it
printing money. It is only when the market is going sideways or down that
you can tell the men from the boys. It is not very comforting to know that
90 percent of the professionals currently on Wall Street have never seen a
bear market. It's pretty tough to go elephant hunting if you have no idea
what the elephant looks like.
As an example, StocksAtBottom.com has been
highly negative on Cisco since the stock was in the 80's. Yes, you heard
us right. In the 80's when this stock was trading at several hundred times
earnings, SAB wrote a multi-page write-up advocating that stocks like
Cisco, Amazon, and Yahoo made no sense. Oh yes, they were and remain today
"great companies". When you are in the stock market however,
it's not about companies being great. It's about what value they are
selling at. Value is everything. Let us repeat that. VALUE IS EVERYTHING.
If you can buy a dollar for a dime, you should trade all day. If you have
to buy a dollar for five dollars, buddy stay away. That's precisely what
has happened and is happening with the Cisco's, Yahoo's, and Amazon's of
the world. People overpaid for them. Remember, when you overpay, and you
are Long, you are Wrong.
The people who subscribe to StocksAtBottom.com
come from all states of the United States, as well as Europe, Asia, and
the Middle East. Many are individual investors, who have been in the
market for years. Many do their own homework; while some use brokers.
Other subscribers are professional money managers and stockbrokers, who
are less than satisfied with the flow of research that they are currently
seeing in their pipeline.
The reasons are many and simple. If you work
at a brokerage firm or investment house, you are in many ways limited to
the information flow of that house. A major firm does not want their
brokers buying their clients the ideas generated from another firm. This
means the client is limited to the ideas generated by the brokerage firm
where he or she has an account. StocksAtBottom.com sees the research of
every major investment firm in the United States, Europe, and Asia. We
compare it to one another. We rip it apart. We make our own decisions. SAB
is free of financial bias.
What does it mean to be free of financial
bias? First, StocksAtBottom.com will make two promises to you. Read
carefully now, and ask yourself, can the people you are involved with say
the following?
1) StocksAtBottom.com and the people
(including our families) affiliated with StocksAtBottom.com receive no
compensation, zero, nothing, not a penny from any company whose stock
you will ever see us write about on this web-site.
2) In addition to the above statement,
StocksAtBottom.com does not buy shares in the stocks we talk about. SAB
does not tell you we like them, in the hopes of running them up in price
and selling out at a profit. SAB does not do this for two reasons. The
first reason is because it is 100 percent unethical to do this - to say
nothing of what our nation's securities laws have to say about it.
Secondly, 90 percent of the companies SAB writes about are multi-billion
dollar companies. SAB would have to buy millions upon millions of shares
to run them up. SAB has no interest in that approach. We can assure you
that others do.
Let's elaborate on this concept of financial
bias. What would you say about a large investment banking firm that gets $
10 or $ 20 or $ 30 million dollars in investment banking fees from a
company in a year, and then writes up a research report and tells you what
a great buy the stock is? Would you say that they are financially biased?
Would it surprise you that they like a company at $ 200 per share, and
still like it at $ 150, and $ 100, at $ 75, and at $ 50 and then they put
a sell on it at $ 15 or $ 20? This happens on Wall Street all the time.
Folks, that's why less than one percent (yes 1 %) of all Wall Street
recommendations are sell recommendations. The firms are afraid of losing
out on the potential investment banking business that they would be denied
if they alienated the investment-banking client by knocking the stock in a
research report.
When you read the above, a couple of things
should become apparent to you. They are:
A) You either get it or you don't
And
B) Life rewards those who get into gear with
reality
No matter what the reality is, you must
understand it, and get into the flow of that reality to be successful. In
the stock market, if the market is tanking 100 points a day for weeks, you
don't get in the way and show you are brave by buying stocks. You run for
cover and wait for the tide to go your way. Remember that a smart swimmer
always uses the current to his advantage.
If you want to get in the way of a bear
market, you better be looking for suicide. You never catch a falling
knife. It's the same with the market. The market will tell you what stocks
to buy. Just open your eyes and deal with reality.
When you read StocksAtBottom.com's writings,
you will find they are written in a "NO NONSENSE" fashion. They
are unlike anything you have ever read associated with the stock market.
They are written in a common sense, let's make money, plain language
manner. SAB doesn't try to impress you with fancy language that's meant to
dazzle you, but is really nonsense. An example is when an analyst comes on
the air and says, "Well yes, the stock was down today, but it was on
low volume." Buddy, SAB doesn't care, down is down, whether a million
shares traded or a thousand.
StocksAtBottom.com does not have ideas every
day. SAB calls people who do the "Stock du Jour Club". There are
investment firms today with over a thousand stocks on their buy listings.
God bless them. It does not work as far as SAB is concerned.
StocksAtBottom.com typically likes a handful of companies per month.
Warren Buffett believes that a person should own perhaps only twenty
stocks in a lifetime. We know people that buy twenty stocks per month.
Folks, the stock market just does not work that way. You know in your
heart that StocksAtBottom.com is right.
When SAB does like something, we e-mail you so
that you know where SAB stands on a stock. So always make sure that
StocksAtBottom.com has your best, most current e-mail address. When SAB no
longer likes a stock, we e-mail you and tell you that too.
Sometimes the talented people we draw upon
just sit around the table and discuss interesting ideas. You will hear
about them when StocksAtBottom.com sends you special e-mails. They are
called, you guessed it, "Sitting Around the Table". Sometimes
SAB will put together a commentary that is several pages long and you
guessed it, SAB will e-mail it to you. Back in March of 2000, within one
month of the NASDAQ peak, StocksAtBottom.com told people to get out of the
Internet stocks and technology stocks. For those who listened, they are
still wearing their pants. Those who did not listen, well, they lost their
underwear too.
It really comes down to this. If you are tired
of playing the game the same old way, then try playing with
StocksAtBottom.com. SAB promises you an intense, rewarding experience and
an education in the market like you would not believe.
Remember folks:
If you always do, what you always did, you
will always get what you always got. Of course if this too difficult,
there's always the definition of insanity to work with:
Insanity is doing the same thing, over and
over again, expecting a different result. Try StocksAtBottom.com, and
perhaps, just perhaps, your results will be different. In any event,
StocksAtBottom.com wishes you all the success in the world in this market,
and all future markets you will ever play in.
Regards,
Your Friends At
StocksAtBottom.com
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Copyright 2005, StocksAtBottom.com, Inc.
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