General: For simplicity purposes, we have structured the portfolio based on commonly accepted Industry Sector and Industry nomenclature. The broad Industry Sectors are: Interest Sensitive, Consumer, Industry, Energy and Transportation. Within these sectors are the specific industries.
In our listing beside each Industry Sector and each Industry, we have placed the rough percentage weight as determined by the Standard and Poor’s (S&P) 500 Index. For example, the Interest Sensitive sector contains approximately 25% of the stocks of companies in the S&P 500 Index; banks account for approximately 7.25% Note: In an ideal world, the SSI portfolio’s holdings would be weighted roughly in line with the S&P 500 Index, i.e., if 7.25% of the S&P 500 Index is made up of bank stocks, so would our portfolio.
However, it is not an ideal world, so we may at times be over weighted (that is the SSI portfolio will have more money invested in the particular Industry Sector or Industry than is represented in the S&P Index) or underweighted in Industry Sector or an Industry based on macroeconomic, industry specific or pricing reasons. In parenthesis beside the percentage weighting of each Industry Sector and Industry, you will see a +, a – or an =. These indicate that the Industry Sector or Industry is over weighted (+), underweighted (-) or equally weighted (=).
Industry: Discussed above
Securities: The name of each stock owned in the portfolio.
Percent: The optimum percent that would be invested in each Industry Sector and Industry under ideal conditions. The +, -, = in parenthesis is explained above.
Symbol: The stock symbol utilized by trading exchanges.
Relative P/E: The volatility adjusted mean purchase price price/earnings ratio. The math of this number is all part of our ‘secret sauce’; but in rough terms, we have taken the historical range of the price/earnings ratios of the company, adjusted that range for the volatility of the stock and determined the price/earnings ratio at which we would buy the underlying stock.
Earnings: CJS Research’ earnings estimate for the year specified.
Current Price: Closing price of stock on preceding Friday. Note: Since we take a very long-term view, we see no reason to update prices daily unless the market is in a period of extreme volatility. In that case, we will update the prices daily.
VERY IMPORTANT: In any case, (1) if a stock in the portfolio reaches a sale price, (2) if a stock in our universe reaches its buy price or (3) if a stock on our buy list advances outside our buy range, irrespective of market volatility, we will notify subscribers immediately.
Buy: CJS Research recommends buying this security within the price range indicated.
Current Buy Price: Equals Relative P/E (see above) times the forward looking earnings estimate adjusted for certain technical factors in our pricing discipline.
Hold: CJS Research would not buy this security but if already owned, CJS Research would hold this security.
Stop Loss: The price to which a stock must decline to trigger a sell order.
Sell: CJS Research recommends selling this security if it falls below the indicated price.
Trading High: The highest value in CJS Research’ valuation range.
Sell Half: The price at which a stock enters the sell half range in CJS Research’ valuation range.
Notes: Describes the last action CJS Research took with respect to the stock. The date is the date on which the action was taken. BT = bought. RMV = removed from the Buy List. SLD1/2 = sold half of the original position. The price is the price when the action was taken.
|