Strategic Investing

A Service of Adrich Corporation

Strategic Investing focuses on stocks with increasing revenues and profits.
KISS + SF!

What is Growth Investing?

The Strategic Investing philosophy relies upon fundamental concepts of investing pioneered by Graham and Dodd in their book, “Security Analysis” as well as the criteria developed by Ernest Zahn, Armand Erpf, Ralph Hansmann, Malcom Smith, Bill O'Neil, Ian Woodard and Marc Chaikin. Our portfolio selection criteria requires companies to have sales and earnings growth, institutional sponsorship, and meet certain other conditions.

Stock ratings

Stock ratings enable the investor to quickly separate stocks that might be able to show improvement in their stock price. There are several methods available. Many use one or more of the following:

Rating	Description	Range
Accumulation/Distribution	Uses a price and volume formula to determine if a stock is under accumulation (buying) or distribution (selling) in the last 13 weeks.	A signals heavy buying; E is heavy selling.
Earnings per share	Compares a company’s last two quarters and last 3-5 years of growth and stability with those of all other companies.	A 90 rating means its earnings outperformed 90% of all companies’.
Relative Strength	Measures a stock’s relative price change in the last 12 months vs. all other stocks in the dataset.	The best companies rate 80 or more on both EPS and RS on a scale of 1 to 100.
Overall	Combines multiple ratings to get an overall picture.	EPS and RS get the more weight; stocks’ percentage off their high price also is considered. Ratings are from 1-99, with 99 being best.

It is easy to buy stocks but the most important aspect of successful investing is knowing when to sell.

The development of Action Points as selling criteria allows investors to concentrate on retaining profits while reducing losses.

However, the choice of a selling trigger should be dependent upon each individual's determination of a risk/reward ratio coupled with a GNS (good night's sleep) factor.

Keep it Safe, Simple and Stay Focused!
Last updated - February 6, 2007