The second half of 2010, surprisingly, was quite rewarding. Utilizing our selection criteria, our average stock performance for the High Cash Stock Review, published on Seeking Alpha, was up over 37% percent compared to the S & P 500’s very respectable 20.82%.
In the fourth quarter, the High Cash Stock review was up a strong 20.38% percent compared to the S&P 500’s gains of 9.92%.
Our third quarter 2010 performance was rewarding, with a 16.68% gain compared to the S & P 500’s 10.62%. Please review our update.
The High Cash Stock Review portfolio is based on very low or negative enterprise values while still including our established criteria of strong increases in cash flow, earnings, and a qualitative review to ensure it is a good business model. The goals are to select, purchase, monitor, and sell companies in an effort to obtain outstanding performing investments while minimizing risk by finding low values for our clients.
The second half of 2010 based on simple math is:
| Time | High Cash Stock Review. | S& P 500 |
| Fourth Quarter 2010 | 20.38 % | 9.92 % |
| Third Quarter | 16.68 % | 10.90% |
| Total | 37.06 % | 20.82 % |
Fourth Quarter 2010 performance on our Seeking Alpha listed stocks:
| Company | Fourth Quarter 2010 |
| China Yuchai International Limited (CYD) | 63.14 % |
| Homeowners Choice, Inc. (HCII) | * 29.69 % |
| KHD Humbolt Wedag International AG (OTC:KHDHF) | 22.76 % |
| O2Micro International Ltd. (OIIM) | (- 1.44) % |
| The Bancorp Inc. (TBBK) | 44.02 % |
| Tollgrade Communications Inc. (TLGD) | 28.10 % |
| Tessera Technologies Inc. (TSRA) | 19.55 % |
| Silicon Graphics International Corp (SGI) | 11.21 % |
| Sonus Networks, Inc. (SONS) | (-27.76) % |
| Terra Nova Royalty Corporation (TTT) | *14.61 % |
*Dividends not included
Since we understood that the very low values may provide protection from a market sell-off, positive earnings and cash flow
