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Mark Gomes
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Disclaimer: This biography is required reading for anyone considering an investment in any of Mark Gomes' selections. It contains critical information about his research and trading methodologies. Mr. Gomes is currently the CEO of Pipeline Data, LLC and a contributing analyst to PTT Research.... More
My company:
PTT Research & Pipeline Data, LLC
My blog:
Poised To Triple
My book:
Faster Than Forty
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  • Beware Of The Biggest Pump-N-Dumpers: Wall Street Brokerage Firms!

    "Our studies indicate that you have your choice of tossing coins and taking the consensus of expert (Wall Street) opinion and the result is just about the same in each case." - Benjamin Graham

    That statement was captured in a video made about 70 years ago. It was made by Benjamin Graham, the father of modern stock valuation and the man who taught Warren Buffett how to become a billionaire.

    His words still hold true today. After all, why would Wall Street firms pay its analysts top-dollar to give good advice to Main Street investors for free?

    They don't. The top-dollar analysis goes to their institutional customers first. By the time Main Street finds out that a stock looks angelic in the consensus eyes of Wall Street, there's a 50/50 chance that it's overvalued.

    Himax (NASDAQ:HIMX) provided a perfect example of this:

    (click to enlarge)

    I selected this stock at $3.44 per share. My Methodology (packed with lessons from the greatest investors ever) stated that 10.32 would be our "graduation" price. It only took 6 months and is indicated by the circles on the chart above.

    Predictably, with the stock gaining notoriety, Wall Street jumped in to stimulate excess excitement to spur customers to buy the stock (after all, brokers are sales people -- they get paid for generating transactions). At its peak, the stock hit $16 and had a $18.50 price target.

    Readers asked why I would miss a ride like that. The answer was simple. At $3.44, I saw $1 of risk and $7 of potential reward. At $10, I saw $5 of risk and $5 of potential reward. I only play 50/50 bets at the casino (for fun). At home, where my life savings are at stake, I only play stocks where the potential reward dwarfs the risk.

    To be clear, I do play some high-risk stocks... but I make sure the potential reward is much much higher. Consequently, I aim to be right about 50% of the time and make 100-200% on my winners, while losing 20-30% on my losers. The result of investing this way has been an average annual return of nearly 40% since 1996. If you do the math, that's 400x your money.

    Wall Street doesn't play that way. Wall Street plays to maximize customer transactions -- that's what maximizes their revenue.

    Try to remember that the next time one of your stock gets an upgrade at the same time as it hits the top of a Risk/Reward Chart. The chart will take better care of you than Wall Street analysts.

    The analysts are looking out for themselves.

    Tags: HIMX
    Jun 10 12:04 PM | Link | 11 Comments
  • Learn How To Become A Billionaire This Weekend

    The weekend is a great time to build your skills to attack the week ahead.

    The easiest way to get rich is to learn how the legends made their fortunes. Remember, Warren Buffett was a paperboy before he attended classes taught by the grand-master, Benjamin Graham.

    Those lessons are more accessible than ever (you can read them while lying on the beach!). With that knowledge, plus the information sharing power of the Internet, Main Street investors have everything they need to beat the pros.

    Today, I'm recommending two great reads:

    1. The Methodology: It's free and includes videos from Warren Buffett, Ben Graham, and Peter Lynch. The answer to most of the questions I see here are answered in it.

    2. Benjamin Graham and the Power of Growth Stocks: It's about $25 on Amazon and the Apple iBook store. Here is a snippet from the book:

    "To understand Graham's impact on the financial world, all you really need to know is that he was Warren Buffett's mentor for more than two decades.

    Graham is probably most widely recognized for his contribution to value investing, a methodology that relies on strict analysis and timing to acquire undervalued stocks when they're trading at a discount to their intrinsic value and sell them once they've earned a suitable return.

    Although his name is nearly synonymous with value investing, Graham also began to see the value of growth stock investing late in his career. He even developed a formula and a methodology for growth stock investing.

    Graham's investment philosophy was rooted in two important premises: that a security should be analyzed independently of its price, and that the future performance of any security is uncertain.

    He suggested that intelligent investors should aim to purchase a security at a discount to its assessed value in order to provide a margin of safety that can protect their investment against loss. Both the risk and the return of the investment are dependent on the quality of the analysis and this margin of safety."

    Finding a new pick today can make you 50% one time on that one pick. Reading those educational pieces can make you 50% every year on your entire portfolio.

    The choice is yours!

    May 31 11:52 AM | Link | 3 Comments
  • Forget The Rhetoric - Check The Facts!

    When someone tells you something negative about someone else, how do you know whether to believe them or not?

    Simple. Just check the facts. Here are ours:

    • Most of our selections continue to rise after they graduate.
    • 10 of our 19 former selections (53%) graduated as 200% gainers (triples)
    • The remaining 9 "losers" were expelled with an average return of 2%
    • Net-net, our average has risen 93%, but that only tells half the story
    • Our "Core" picks have averaged 119%
    • 62% of our Core picks have tripled
    • Our Speculative picks (weighted at 10% of our Core selections) have averaged 52%
    • 33% of our Speculative picks have tripled
    • Of our 10 total stocks that tripled, eight have set higher 52-week highs this year
    • Their average peak-ROI is 319%

    (Click for Article)
    TickerDateInitial PriceGraduation PriceROISubsequent HighROI
    Lions GateLGF3/20/201212.1436.42200%$37.81211%


    As you can see, we've provided great short-term (one year or less) picks, as well as established picks with great long-term performance.

    Anyone can belittle an analyst when the market is down, especially if their audience isn't looking at the facts. See our complete track record at the PoisedToTriple website. Then, check out our Methodology to see how our picks attain success. Thanks!

    May 30 3:53 PM | Link | 8 Comments
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