PORTFOLIO UPDATE: NEW RESEARCH AND POSITION
During the trading day, I tweeted the following:
You know the story with TZA. No need to elaborate any further than I have recently regarding this position that was sold at a loss today.
There are going to be some changes to Zenpenny, as you noticed by the release of the EVOL research today. My capital management website will be the home of all future research. In fact, all the research from the past is in the process of being moved to this site, as well. I want to separate my research from my blogging, charts etc.
The EVOL research is in PDF format and available here.
EVOL is a very well managed company with minimal risk and tremendous upside potential over the long-term. All of my investment decisions, with respect to new positions, are based on risk/reward equations that are technically based. Fundamentals come in second, but are a necessary component of initiating any new position. With my grasp of the technical outlook for a company, I feel that I am better able to model the potential risk and reward than the traditional financial modeling that is so prevalent on Wall Street. This is why you won't see me get into detailed forecasts of future earnings and cash flows. It is not an area where I excel, having found that most attempts to use this type of methodology is hit and miss, at best.
The price when paired with outstanding fundamentals based on any number of components that I like to look at basically sings to me. That is the best way I can put it. I can clearly see the future price potential when combining both the fundamental and technical aspects of an attractive opportunity. I cannot see anything without combining the two. If I was blind to fundamentals, then it would be like a quarterback attempting to throw a ball down field after getting 3 of his fingers chopped off. If I was blind to technicals, it would be much the same.
I think that what I do is pretty unique in the small-cap space with respect to combining these methods of analysis, allowing them to fully complement each other in as many ways as possible.
I'm attempting to put together more detailed research as my experience with developing these reports grows. Now that I have my company's image attached directly to the research, it should only serve as impetus to improve even further.
