How to Invest Profitably in Today’s Market You Can Do It With Chaikin Power Tools Acorn Club Philadelphia 02-08-2012
There’s a Revolution on Wall Street An Information and Investor Revolution •
$400 Billion transferred from full service brokers to self-directed accounts at online brokers
•
Smartphones and tablets replacing laptops
•
Financial Information available on the web sites like Yahoo Finance, Google, Finviz, AAII and others in unlimited quantities
In a flood of information,
investors are thirsty for knowledge.
Despite a flood of data, investors are thirsty for information.
Š 2012 Chaikin Stock Research. All Rights Reserved. Proprietary and Confidential.
The Chaikin Power Tools Solution Distill 45 years of Wall Street knowledge into a powerful stock ranking model
Deliver in a graphic so simple it can even be displayed on an iPhone
Voila! The Chaikin Power Gauge
Solution: Products for Individuals Professional Tools for Everyday Investors
Actionable information integrated with trading. Chaikin Power Tools for Mobile For iPhone, Android Includes Chaikin analytics and alerts Provides in-app trading
Desktop & Browser Widgets
Research On-Demand
Delivered via mobile, web, or email Subscription
Consistent, cross-platform presence. © 2012 Chaikin Stock Research. All Rights Reserved. Proprietary and Confidential.
Chaikin Power Gauge Rating Clear summary of a stock’s potential - with a record of success
Financial Metrics • • • • •
• • • • •
LT Debt to Equity Ratio Price to Book Value Return on Equity Price to Sales Ratio Business Value
Earnings Performance • • • • •
Price/Volume Activity
Earnings Surprise Earnings Growth Earnings Trend Earnings Consistency Projected P/E Ratio
Price Trend Price Trend Rate of Change Chaikin Money Flow Relative Strength vs. Market Volume Trend
Expert Opinions • • • • •
Earnings Estimate Revisions Short Interest Insider Activity Analyst Opinions Relative Strength vs. Industry
© 2012 Chaikin Stock Research. All Rights Reserved. Proprietary and Confidential.
Chaikin Power Gauge Rating Model Investment Performance
Actual Results, 2011
Backtested Results, 2001 - 2010
SP500
SP500
Very Bullish stocks: UP +20% Very Bearish stocks: DN -4%
Very Bullish stocks: DN -3.2% Very Bearish stocks: DN -19%
Performance measured over Russell 3000 universe Š 2012 Chaikin Stock Research. All Rights Reserved. Proprietary and Confidential.
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Power Gauge Research Reports Enhancing the Chaikin Power Gauge with a 4 page research report Research on Demand for 5000 stocks
Creating and Managing Your Portfolio ‣
Creating a portfolio is like planting a garden ‣ “We must all cultivate our own gardens”
~ Voltaire
‣
Tend your stock portfolio as you tend your garden ‣ Choose stocks thoughtfully which are right for you ‣ Diversify into 10 stocks
‣ Weed out the losers and replace with healthier stocks ‣ Allow the best performers to thrive and grow
‣
The stock market is a loser’s game ‣ “The investor who makes the fewest mistakes wins” ~ Charles Ellis, Greenwich Associates, Vanguard Director
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How to Find Profitable Stocks to Buy ‣
Stocks in strong industry groups
‣
Market leaders not laggards
‣
Analysts becoming increasingly positive
‣
Companies you know and admire
‣
Stocks with products and services your children and grandchildren are using…
‣
If the Chaikin Power Gauge Rating is Bullish 10
Using the Chaikin Power Gauge to Manage Your Portfolio ‣
Buy stocks with positive potential ‣ Bullish Chaikin Power Gauge Ratings indicate positive potential ‣ “Green is good”
~ Gordon Gecko
‣
Sell stocks with negative potential ‣ Bearish Chaikin Power Gauge Ratings indicate negative potential ‣ “The Power Gauge is Visine for your portfolio; It gets the red out” ~ Marc Chaikin
‣
Filter investment ideas through the Power Gauge Rating ‣ Use the PGR as a prism to focus on the stocks most likely to go up ‣ Don’t waste precious time researching stocks with bearish PGRs
‣
There are stocks in everyone’s portfolio which blow up ‣ Stocks with a bearish PGR are more likely to cause you financial pain ‣ Play defense by eliminating these stocks before they blow up like Amazon 11
Chaikin Power Gauge Ratings Work! ‣
Winners…
and
Losers
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Examples of Bullish and Bearish Power Gauge Ratings
‣
Retailing Stocks ‣ Macy’s Inc. vs. Urban Outfitters
‣
Technology Stocks ‣ Apple Inc. vs. Amazon.com Inc.
‣
Bank Stocks ‣ PNC Financial vs. Bank of America
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Retailing Stocks Macy’s Inc.
Urban Outfitters
Retailing Stocks Macy’s Inc.
Urban Outfitters
Technology Stocks Apple Inc.
Amazon.com Inc.
Technology Stocks Apple Inc.
Amazon.com Inc.
Bank Stocks PNC Financial
Bank of America
Bank Stocks PNC Financial
Bank of America
Wall Street Wisdom and Your Portfolio ‣
Know thyself and follow a plan that’s right for you ‣ “All of the significant battles are waged with the self”
~ Sheldon Kopp, Author – If You Meet the Buddha on the Road, Kill Him
‣
Cut your losses and let your profits run ‣ “Amateurs go broke by taking large losses; professionals go broke By taking small profits” ~ William Eckhardt, Legendary trader
‣
Don’t be scared by headlines or dire predictions ‣ “Make money not predictions”
~ “Floor trader’s creed” ‣ “The key to making money in stocks is not to get scared out of them” ~ Peter Lynch, Fidelity Investments
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More Wall Street Wisdom and What it Means ‣
Watch the Fed ‣ “The Federal Reserve Board writes the script for Wall Street”
~ Martin Zweig, Successful money manager and author
‣
Listen to the Market ‣ “The market can stay irrational longer than you can stay solvent” ~ John Maynard Keynes
‣
There are no Gurus on Wall Street ‣ “If all the economists in the world were laid end to end they’d never reach a conclusion”
~ George Bernard Shaw
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Future Directions: “Pandora for Stocks” Automated Stock Discovery Widening the funnel: the next evolution of traditional screening tools
Automated
Allows average users to find high-quality investment ideas with little or no input Enter keyword or stock symbol to create a dynamically updating ‘Channel’.
Personalized
Suggests results based on users investment style
Relevant
Results weighted by Chaikin Power Gauge rating & search match.
Community-Driven Channels shared with Chaikin community, Facebook/Social contacts. ‘Now trending’ Channels & Stocks migrate to top.
Platform-Agnostic
Common API, multiple front ends (Web/Facebook, iPhone/Mobile, iPad/Tablet).
© 2012 Chaikin Stock Research. All Rights Reserved. Proprietary and Confidential.