Zacks' Voice of the People highlights opportunities with VistaPrint, Tractor Supply and Regal Entertainment - Press Releases

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For Immediate Release

Chicago, IL - 12/30/2011 - Zacks highlights commentary from People and Picks Trader " JohntheWizard " .

For more Voice of the People, visit http://at.zacks.com/?id=5851

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Zacks Method for Trading More than Levels the Playing Field

As stated before, the back test is the best Indicator I have for any Investment Strategy.

Zacks #1 Rank "Strong Buy" picks are companies with earnings estimates that have jumped the most. These stocks have beaten the S&P 500 nearly three times over with an average yearly gain of +28%. If you applied The Method back in 1988, you could have exploded a $10,000 investment into over $3 million with monthly rebalancing equally weighted portfolios of roughly 220 stocks.

So the add runs."Equally weighting of roughly 220 stocks" is my addition.

Exploding $10k into $3 million over 23 years implies a compounding yearly gain of 28.14%!

Does it really work like that?

What apparently worked beautifully until December 1999 started to lessen until the onset of the credit crisis and is a losing game already for more than four years.

When you back test these monthly changing portfolios of 220 stocks  over the past 12 years using Research Wizard, and apply the rules of this game (Market cap > $100 Million and Share Price >$1.5)  gives you 13.2%/year with a maximum risk of -57%. The first half of these past 23 years this strategy must have worked a lot better than the second part.  

Since October 2007, the beginning of the credit crisis, these monthly ZR#1 portfolios even underperformed the S&P500 Index by -5%. Since October 2007, you would have lost -17.5% or yearly compounded a loss of -4.5%.

In addition, comparing equally weighted portfolios where the smaller stocks tend to dominate the results with market cap weighted portfolios (S&P500) where the larger stocks tend to dominate the results is like comparing apples with oranges. Large investors need large stocks for their large sums of money.

Small investors can get away with smaller stocks with often smaller daily dollar volumes. If you would have consistently invested in the 40 smallest caps of ZR#1ranked stocks, you would have made 10% since October 2007. I believe that is  one of the best back tested result  you could have gotten during these past 4 years using the Zacks Method for small Investors and allowing for daily dollar volumes in excess of $450,000. Real life involves slippages, transaction costs and usually doesn't allow for compounding the results as the stocks are too small for that.

As stated before, the back test is the best Indicator I have for any Investment Strategy.

The most recent picks by «JohntheWizard» are:
A buy rating on  VistaPrint  ( VPRT )

a buy rating on  Tractor Supply Co.  ( TSCO ) and
a buy rating on  Regal Entertainment  ( RGC ).

About the Zacks Community

In 2008, Zacks Investment Research launched PeopleAndPicks.com, a stock-picking website where members of the Zacks community can test their strategies and share ideas with other members. Each user is scored on the accuracy of his or her picks, and top users are rewarded with free products from Zacks. Registration is free. To learn more about People And Picks, visit http://at.zacks.com/?id=5957

About Zacks

Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Len Zacks. As a PhD from MIT Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3:1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros.  In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit From the Pros by going to http://at.zacks.com/?id=5958 .

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Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.

Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.

Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security.

Contact: Brent Billock
People & Picks Manager
Company: Zacks.com

Phone: 312-265-9307
Email: pandp@zacks.com
Visit: www.Zacks.com


 
REGAL ENTMNT GP ( RGC ): Free Stock Analysis Report
 
TRACTOR SUPPLY ( TSCO ): Free Stock Analysis Report
 
VISTAPRINT NV ( VPRT ): Free Stock Analysis Report
 
To read this article on Zacks.com click here.



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.




This article appears in: Investing , Stocks

Referenced Stocks: RGC , TSCO , VPRT

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