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Our Strategy
Through its research arm, Boston Analytics Research & Trading, LLC, WINNINGSTOCKS.COM maintains a core portfolio of anywhere between 50 to 75 stocks, which represent the very best and strongest companies within a variety of industries. This portfolio was developed through proprietary means and is updated daily. Every stock in the portfolio is not necessarily a potential buy as we wait for technical indications to tell us when to move on a stock.
This core portfolio is derived from monitoring over 5,000 publicly traded companies on a weekly basis and identifying those with large and growing institutional ownership, strong fundamentals, and finally and most importantly superior earnings compared to the company's peers as well as the earnings growth of all stocks. Once we identify these stocks they become part of the core portfolio.
Not all of these core portfolio stocks will be making strong upward moves all the time. It may be a case of a depressed industry group, which is keeping the best companies within that group down. Industries and sectors come in and out of favor all the time so our method is to monitor for new leading sectors and identify the leaders within the emerging industry.
For example, we altered our screening once the presidential election was settled and George Bush became our next President. We decided to focus on the defense industry, since a major platform for him during the campaign was to increase defense spending. We targeted companies with strong earnings and revenue growth as well as good technical aspects in that sector. The company we found was Engineered Support Systems (EASI). EASI was presented to our subscribers as an investment idea in April of 2001 and subsequently went on to appreciate by more the 180%.
In summary, our strategy consists of three steps:
- Find the top 1% of all companies based on balance sheet, revenue growth and earnings.
- Monitor chart movement and other technical indicators for both industry and stocks within the industry.
- Buy the stock when our signals tell us to.
The strategy is both fundamental and technical in nature; we add stocks with the strongest fundamentals to our core portfolio and then employ technical indicators to tell us when to buy a stock.
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