I am starting off a new venture. Until I find another name I am going to call it the Couch Potato Contrarian. I am going to create a portfolio with a starting value of $100,000.
The portfolio will consist of contrarian plays from anywhere in the world. I will seek out bombed out companies and countries where the story is going from bad to less bad. I will then take measured positions with defined stop loss parameters in place. I will then sit and wait for the news to hopefully turn and the market to re-rate the position higher
I have found that small positive changes in the story of a company or country can lead to huge gains. case in point was my trip to Ukraine over a year ago. While there I discovered an agricultural company selling for a P/E of less than 1.
The perception was that this company's operations were behind the lines in a province that was involved in a war with Ukraine. What i discovered was that the company although in side the separatist area was relatively unaffected and continued its operations.
The company reported decent earnings last year and the stock was up almost 200%.
The same thing happened in Cyprus several years ago after the bank bail in. The financial media was preaching gloom and doom. Yet after the market fell around 99% the end of the world did not appear, Cyprus was still there and so were all the assets. There were several companies that I bought that were up several hundred percent after the crash. In fact, a couple of them continued paying dividends right through the crisis.
With ease and low cost of modern communications it simply is not prudent to limit one self to just investing or speculating in ones home country. All markets go through bull and bear cycles. If an investor just limits himself to just his own country than he dooms himself to missing out on potential tremendous returns. Its just not smart way to play the markets.
I am going to be honest, I am going to publish this portfolio and its recommendations for free for some period of time. I want to gauge if there is interest and whether people actually have the desire to move beyond just US stocks.
This portfolio will make money. I know how to find unappreciated and contrarian plays. At some point in the future, after I get people hooked on winning picks, I intend to take the site to a pay platform.
I want to be upfront and transparent. I want you to eventually pay for this information. I spend hours reading and thinking about markets and analyzing stocks and other investments. I am willing to give you information for free to prove I know my stuff.
The first pick was published yesterday and a 3% position in Sylvania Platinum (OTC:SAPLF). The only thing I ask of you currently is that if you enjoy my writing and my picks than hit the follow button above.