Our Philosophy, Stock Selection

 

 

The ideal long stock has:

• Earnings growing faster than consensus expectations;
• Strong cash flow to support continued earnings growth;
• Corporate insiders are buying their own stock; and
• The stock is under-valued.

The ideal short candidate has the opposite characteristics:

• Earnings are declining or growing slower than consensus expectations;
• Weak or deteriorating cash flow;
• Corporate insiders are selling their firm's stock; and
• The stock is over-valued.