Investment Philosophy
The value-added portion of our investments results
from strategic overweighing in selected industry groups, especially
those that appear particularly attractive within key economic sectors.
Sector and industry group weightings are the cornerstones of our
investment process. However, this process begins and ends with the
all-important evaluation of stocks.
Approximately 15,000 stocks that include large, mid,
and small cap issues are combined to form our investment universe.
| Stocks are
classified according to: |
A. Price rankings
based on the price performance of all stocks within the
universe, which are ranked from the most too least favorable.
B. Volume
rankings based on comparisons from historical volume data
points to current volume data points.
C. Timeliness
rankings based on an arithmetic average of the timeliness
ranking of the Value line universe of stocks.
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Our Investment Process
After sector and industry groups are selected, purchase
candidates are first screened by a set of company fundamental characteristics
to determine if the candidate is a good company.
Purchase candidates are then screened by a set of
technical factors to determine if the candidate is a good stock.
Capitalization weightings generally range from $ 5
billion to $ 33 billion. However, we may, on occasion, purchase
smaller issues due to a lack of larger candidates available in a
particular industry group.
There are thousands
of excellent companies available for investment. However, not all
of them appreciate in value, because they are presently not very
good stocks.
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