| |
From the same investing minds that brought
you The Prudent Speculator – the #1* rated newsletter over the past decade
by Hulbert Financial Digest – a value approach to investing in technology
stocks.
Other technology newsletters out there may look for
quick gains based on hype and momentum, but the Prudent Speculator
TechValue Report looks for companies they believe have real,
honest-to-goodness value. Why value? Based on the historical data found in
Ibbotson’s Stocks, Bonds, Bills and Inflation Yearbook 2007, value
investing outperforms a more growth-oriented strategy over the long term.
But can a value approach work for high-flying technology stocks?
We belive that it can. The Prudent Speculator TechValue Report employs the
same tried and true investing strategies that have proved successful in
The Prudent Speculator over the past 30 years.
Before we decided
to launch this newsletter, we looked back to see how our tech-based
Hotline Special picks found in The Prudent Speculator had performed. The
results blew us away: Together, our 224 tech stock recommendations have
gained 839% since 1998! That’s an annualized rate of 30% through the end
of March 2007, compared to annualized returns of just 3.7% for the Nasdaq
and 4% for the S&P 500!
We might be biased, but we think these
numbers bear us out, and as you would imagine we believe that value-based
tech investing works. Instead of buying stocks at prices that we feel are
too high and praying they will go up before their bubble bursts, we use
our value-based approach to find what we believe are tomorrow’s potential
momentum stocks at what we believe are today’s bargain prices.
Need more proof? Here are some recent profitable sales:
ValueClick – up 1022% (bought 07/03/2001, last sold 01/24/2007)
Diodes – up 803% (bought 03/13/2001, last sold 01/26/2006)
Click Commerce – up 620%
(bought 07/08/2003, last sold 10/26/2006)
Endwave – up 579% (bought
06/21/2002, last sold 05/02/2005)
Peerless Systems – up 547%
(bought 03/27/2001, last sold 11/02/2005)
Trident Microsystems – up 477%
(bought 09/30/1998, last sold 06/22/2005)
Cam Commerce Solutions – up
475% (bought 12/13/2000, last sold 01/18/2006)
Apple – up 418% (bought
09/03/2002, last sold 11/29/2006)
Captaris – up 399% (bought
10/29/2002, last sold 02/08/2007)
What’s the secret of our success? First, we
generally buy inexpensive stocks based on our analysis-- as measured by
price to revenue, earnings and book value metrics -- of companies with
healthy balance sheets. We believe that these stocks have far more reason
to go up than to fall further because our analysis indicates that they are
not yet fully valued by the market – either because the conventional
wisdom is wrong, or because Wall Street simply hasn’t found out about them
yet.
This means that you have the opportunity to buy the companies
that we believe have the potential to become the tech winners of tomorrow
before the rest of Wall Street finds them. We invest when our analysis
indicates that valuations are low and sell when our analysis indicates
that a stock has reached its full value.
We like to say "the proof
is in the pudding," and we believe so strongly in our proven investing
strategy that, like with The Prudent Speculator , the editors of the
Prudent Speculator TechValue Report put their money where their mouths
are, investing their own money alongside you in The Prudent Speculator
TechValue Report's two model portfolios.
Each monthly issue of Prudent
Speculator TechValue Report is comprised of regular and rotating columns,
including:
Buckingham TechValue Portfolio:
This is for those seeking to create a portfolio entirely based on
undervalued technology stocks. This portfolio launched with 25 stocks in
the inaugural issue of TechValue Report. Additions will be made to the
portfolio upon the sale of existing positions as funds suffice, and will
be announced in one of our weekly Hotlines.
Mowrey Portfolio Compiler:
This special feature, created for those seeking a single
technology-related investment idea and investors who are utilizing a
system of dollar-cost averaging. This has proved to be an excellent
strategy to counteract market fluctuations. Each month, we will add a
stock to the Portfolio.
Sector Refresh: A discussion of developments in one of the nine
technology sectors included in our definition of the technology industry.
Executive Query:
A new interview with a top C-level executive from the technology industry
each month.
Databank: Lets you keep track of how our two model portfolios are
doing relative to long and short-term benchmarks. We also chart the
performance of our major nine technology sectors and discuss major market
developments since the previous newsletter went to press.
With your subscription, you will also get:
Weekly
Hotlines each Thursday provide timely analysis of market events,
corporate developments and purchase/sale decisions in our portfolios.
An archive of all
past issues and hotlines.
A FREE Special
Report, "Finding Value in Value in Technology Stocks," detailing our
tech value investing strategy and highlighting some of our past picks.
* As of 04/30/07 - Total Return Rankings and Performance
results of The Hulbert Financial Digest are calculated since 1980 by
proprietary and undisclosed methods of the publication's editor. A
newsletter’s Hulbert Financial Digest’s Ranking is based on an average of
its several portfolios in the event it recommends more than one (and
includes portfolios that the letters have discontinued). Through 04/30/07,
The Prudent Speculator is ranked #1 out of 59, 37 and 16 newsletters
monitored for the 15, 20, and 25 years. Hulbert currently monitors over
160 investment newsletters. For more information about The Hulbert
Financial Digest, go to www.hulbertdigest.com.
Performance data include all gains realized since
the original recommendation and may include multiple sales, for which a
weighted average is calculated.
Past performance is no guarantee
of future results. Previous successful recommendations may not be
indicative of all past recommendations. Certain previous recommendations
may not have resulted in profit and in fact have resulted in losses.
|
|
|
 Meet our Forbes Guru: John
Buckingham
John Buckingham’s education in value investing came from working
closely with his mentor and late partner, Al Frank, the legendary value
investment guru. For 12 years, Buckingham has been managing the Al Frank
mutual fund (with assets currently over $75 million). He has managed The
Prudent Speculator portfolios since 1990. Buckingham is a graduate of the
University of Southern California.
The Prudent Speculator is the best performing veteran in this specialty
among a crowded field of competitors. After screening over 1,000 stocks,
The Prudent Speculator uncovers undervalued securities selling at a 50%
discount from their potential fair market value. Once The Prudent
Speculator recommends buying shares, expect to hold them for long-term
appreciation potential, until they reach true fundamental value, often
three to five years.
In each issue of The Prudent Speculator you get market commentary plus
a Stock of the Month from editor John Buckingham. You also receive a
listing of All Currently Recommended Stocks, commentary on stocks you may
hold and Stocks to Watch—stocks that are close to their buy and sell
limits. In addition to The Prudent Speculator’s three model portfolios,
each month in the Portfolio Builder section you get 10 stocks to buy with
new cash. Each recommendation is accompanied by specific advice on when to
buy, hold and sell. |
|
