We monitor 150 technology stocks, on a daily basis, that fit the methodology of our stock selection patent.
We begin our search for technology stocks using automated screening software that helps us identify potential stock candidates that meet our initial selection criteria. The initial universe of stocks that we screen contains about 15,000 companies.
After the first cut, we have about 500 stocks that may be of interest to us.
All potential stock candidates are placed into 3 stock categories (A stocks, B stocks, and C stocks), based upon the Standard & Poors© investment quality rating.
Out of the 500 technology stocks, we generally will place about 150 of them into the 3 categories, and set the target buy and sell prices, based upon our theory of technology evolution.
We monitor these stocks on a daily basis, and if a client account requires a new technology stock, we make the selection from the stocks in the buy range.
Generally, but not in every case, as the risk of a stock goes up, from A stocks to the most risky C stocks, the potential return goes up, as well as the magnitude of potential loss and the volatility during the holding period.
After the stock is placed in the account, we monitor the stock price daily, and will generally sell the stock at the target sell price, usually set at 40% above the target buy price.
From the performance charts below, it can be seen that the risk/reward relationship generally holds true for the 3 PCM stock categories.
The performance of all A stocks below describes all stocks in the A category, at their current target buy prices. It is unlikely that any client would ever be invested in all of the stocks at one time, and none of the PCM accounts are ever 100% invested in stocks.
All investments bear a risk of loss. There are no guarantees of success. The past performance is not a predictor of future performance
PCM All B Stocks, At Current Target Buy Prices. 5 Year Performance, Compared to Dow and S&P 500. As of July 3, 2017
PCM All C Stocks, At Current Target Buy Prices. 5 Year Performance, Compared to Dow and S&P 500. As of April 18, 2017.
The theory of technology stocks explained in our patent predicts that technology stocks trace out a pattern over a 3-year period of time that is useful for identifying the buy and sell target prices.
You can read more about the theory of technology evolution in our book, Predicting Technology. $12,99 for a single printed copy.
Kindle version available for $9.99 at Amazon.
All stock investments have a risk of loss. There are no guarantees of success or profit in any investments. Past performance is no guide or prediction of future results.
Private wealth management services offered through Investment Management & Insurance Advisors, Inc., a North Carolina state registered investment advisory firm.
Please contact Laurie Thomas Vass at 919 975 4856 with questions.