My primary investment methodology involves screening for micro-cap/small companies with both a solid balance sheet and an attractive valuation, then researching for internal or external catalysts that will likely have a positive influence on future earnings or facilitate a successful 'turn-around'. Internal catalysts would include replacement of a CEO (often a founder), an innovative new product, or a complementary acquisition. An external catalyst would take the form of an underappreciated yet robust positive change or trend in the company's business environment. Look especially for a confluence of positive factors. A degree of inferential reasoning is required, I believe, for judging the potential value of a given catalyst in the context of each individual company's circumstance. My conservative risk/reward criteria for stock selection--seeking the combination of substantial upside potential with minimum downside risk--can well be described by the phrase 'heads I win, tails I don't stand to lose much.' Satisfied to hold cash until I find the uncommon opportunity of strong earnings growth potential in combination with low stock valuation. Must be a compelling enough opportunity to justify accumulating a meaningful position. Invest with an expected minimum hold period of two years and a projected hold of 3-5+ years. Target capital gains potential of 20-25% compounded annually in exchange for the risk of investing in small companies. Current micro-cap holdings: TAYD, DRAD, SPAR, KTEC, HSON.
Secondarily, I'm just beginning to build a bond-equivalent portfolio of large-cap dividend stocks. Quite a challenging process, in my view, given that the growing popularity of DGI--in a predictable consequence of ZIRP--has driven up valuations excessively for the most sought-after names. Future 'flash crash' days or periods of market capitulation will likely provide the best opportunities.
There is not a lot to say about me as I am pretty ordinary 63+ year old guy in my mind. I like to read in the evenings once I finish "my work" in my Art In Stone business. With the business doing well and my Postal Service Retirement, my wife and I do not need to touch any of our retirement savings so I am in the pleasant position of being able to invest for a fairly long time frame. I started daily investment research when I retired in November 2007. Through January, 2016 our retirement savings portfolio is up over 100% while withdrawing $1,000. monthly. Reading investment articles and commentary and being able to react quickly does certainly make a huge difference.
I try to find sectors and even individual stocks I believe are beaten down below true value so my interests in regard to investing change based upon my perception of world; political, sentiment, banking and global economies.
I have a diverse background—as a financial journalist, resident physician, mixed martial artist, painter, entrepreneur, chemistry instructor and web developer—that enabled me to pioneer the “Integrated Investing Research” approach.
I provide consulting to clients, both the retail and professional investors. I accurately forecasted many clinical trials, such as the Flint Trials for Intercept, the Ascend Trials for InterMune and the Affinity Trials MannKind, just to name a few. Through Vincata Enterprises, LLC, I helped many clients to unlock substantial values for their investments.
As an expert in biopharmaceutical analysis, I am also more than capable of analyzing any other industries. Though not shown on Seeking Alpha, I have picked an aggregate basket of outperforming stocks.
Investing in biotech is highly risky, but it can be quite rewarding when investors have an edge in data analysis. Physicians who are rigidly scientific tend to lack the analytical prowess of financial experts. Conversely, financiers usually do not possess a physician’s medical expertise. Likewise, scientists are skillful in data analysis; yet they might not be familiar with a physician’s prescribing patterns, which is a requisite to successful biotech investing.
You can visit my website at https://www.retailinvestor360.com for business inquiry.