~ The Technical Process ~
By now, we have reduced the number of potential stock purchases down to less than 30 stocks. We believe that with our stock selection methods we have identified companies whose prospects are bright yet stock is inexpensive.
However, we also know that we can find a great company but the market will not see our bull case for years, perhaps decades. We therefore do not want to buy a company's stock until we have an indication that the market agrees with us. The best indication that the market agrees with our bullish cash is if the price of the stock begins to climb.
We therefore do not buy the stocks on our buy list until the stocks moves into a bull market. We therefore tend to buy stocks near but never at their lows.
In addition, we believe in risk management. Many stocks will drop in value before we or other members of the analytic community know why the stock is dropping. We therefore use protective stop loss orders to make sure that we do not suffer great losses in our positions. If we are stopped out prematurely and the stock begins to climb again, we buy back our position. Commissions are very cheap these days.
~ Stock Selection Menu ~
~ Investment Management Home ~
Smith & Co. is an investment management company
specializing in stock market timing and stock selection.
© 2002-3 Courtney Smith & Co., Inc.
Smith & Co.
Box 7603, New York,
TEL: (917) 327-3536
FAX: (270) 626-6500
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