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While these systems should improve your chances of success, nothing is
guaranteed and you can still lose money. We believe any thorough investment
analysis includes an understanding of both the technical and fundamental elements
of a company. Human judgment is important, too. It's unlikely that any purely
mechanical system can outperform the market on a consistent basis. The best
investors in the world find all the information they can (fundamentals,
technicals, and more) and pass it through their unique experience and judgment
filter to come up with decisions. To be a great investor, you must do the same.
ERSA System
Based on the External Relative Strength calculations, this
system looks for stocks with great relative strength, along with other technical
factors.
Required fundamentals
For an ERSA signal to be observed, the stock must meet at
least 8 of the following 10 criteria:
- Earnings and sales growth of at least 20%
- A product that's unique and/or hard to duplicate
- Net Profit Margins of at least 10%
- A Short Interest less than 2% of float
- A Price/Earnings ratio no more than twice the projected earnings growth rate (i.e., a "PEG" ratio less than 2)
- A Debt/Equity ratio less than .25
- Positive cash flow
- Net insider buying
- No downward earnings revisions in the last six months
- A Price/Sales ratio less than 5
The ERSA System formulas begin with "DeBry MSST ERSA ...".
Runner System
This system is for those volatile stocks with huge growth
prospects, but also huge risks. Using your fundamental analysis, you find a
stock that you think has great growth potential (maybe a tech stock, maybe a
biotech). This system is designed to get you in on the big moves.
The system is proprietary, but the concept is simple - find
a stock with great growth potential, and try to not to miss any big moves up,
while avoiding big moves down. The system may give you many small losses, but
with the hope of catching the big trend. The system will work poorly on
range-bound stocks.
The Runner System formulas begin with "DeBry MSST Runner ...".
Grinder System
This system has a very simple premise. You start with a stock
that has solid, but not spectacular, fundamentals. A stock that will likely
grow 10-15% a year. Then you simply buy on weakness and sell on strength.
It sounds easy, but if you pick the right stock (again, fundamental analysis),
you'd be amazed at the returns above buy-and-hold.
The system is proprietary, but has a simple concept - find a
fairly-priced stock that should grind higher, and then buy on weakness (although
not too weak) and sell on strength. The drawback to this system is that you will
miss any big moves up, which is why you pick a stock that will be stable and
boring.
The Grinder System formulas begin with "DeBry MSST Grinder ...".
IMPORTANT NOTICE: TSAGroup accepts no liability whatsoever for
any loss arising from any use of this product or its contents. Stock, commodities
and options trading has large potential rewards, but also large potential risk.
You can lose some or all of your investment, or more. This information should
only be used by investors who are aware of the risk inherent in securities
trading.
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