The TOP 5 Portfolio
is a concentrated growth portfolio service for active stock investors. The portfolio takes the concept of "own the best and ignore the rest" to another level as we own just one "Top Stock" ("Top Stocks" are the top rated stocks in terms of earnings strength and company performance) in each of the top five performing sectors.
And since the portfolio is updated every morning, it is one our easiest portfolios to follow -- it only takes about 15 minutes a week!
This concentrated portfolio approach is designed to do one thing and one thing only: Provide superior performance. We are not looking for classically diversified approach or a closet index portfolio. No, this is a "bang for your buck" type of portfolio where we literally own the best and ignore the rest. And with just one stock pick in just five sectors, you can rest assured that the portfolio represents only our very best ideas.
The Starting Point: Our Selection System
At the core of the TOP 5 Portfolio is our stock selection process. Each week the computers crunch the numbers and rank every stock in our universe in terms of earnings strength and company performance. Our goal is simple: We want to identify those companies that are truly tops in their category.
It is important to note that we do not employ the typical "earnings momentum" type of formula that became so popular in the early 1990's. Our proprietary system is extremely robust and cannot be found in any newspaper or public website. The Top Stock system for determining a company's earnings strength and performance incorporates hundreds of indicators, including the analysis of:
- Earnings Estimates
- Revisions to Earnings Estimates
- Momentum of Earnings Revisions
- Measures for Earnings Surprises
- Upside Potential for Earnings Estimates
- Company Momentum
- Industry Performance
From there, our research team painstakingly analyzes each of the top rated stocks on an individual basis. We review the charts from a technical perspective. We review Wall Street's current research and brokerage ratings (we have access to most of the Street's important research), and we check our long-term fundamental models. While it takes an enormous amount of time and energy, the goal is to identify the top stocks in each of the best performing industries.
Once the Top Stocks are identified, we then utilize proven technical analysis techniques in order to determine buy and sell points. We are looking for top rated companies that are also attractive from a chart standpoint. Such an approach tends to put the odds of success in our favor before we ever click the buy button.
In sum, we first identify the best rated stocks in the top performing sectors. Next, we look for solid "technical set-ups" from which to make our buys and then watch the positions like a hawk each and every day.
Risk Management Strategies Are Built In!
With one of the worst Bear Markets in history still fresh in investors' minds, perhaps the best advice we can provide individual investors is this: Stop Feeding the Bears!
As the saying goes, "sometimes the best offense is a good defense." So, in addition to a powerful stock selection strategy designed to outperform by a wide margin in Bull markets, the TOP 5 also has a risk management strategy built into the portfolio for when the Bears begin to growl.
Our disciplined sell strategy is very straightforward. You see, we have no tolerance whatsoever for stocks that are not technically healthy from a chart standpoint. Thus, whenever one of our holdings moves into a downtrend or breaks important support -- we sell the stock, no questions asked.
While it may sound simplistic, this "bottom up" or stock-by-stock approach to managing risk causes us to automatically reduce exposure to market risk during bear markets. And since one of the best ways to make money in the long run is to avoid losing big money in the short run, this approach is an easy way to protect your net worth during bear market periods.
You Get Performance:
Performance is definitely the name of the game in this business! Since being introduced to on January 1, 2006, the TOP 5 has produced the following results:
The TOP 5 Portfolio |
(1/1/2006 thru 11/16/2012)
That's not a typo. The TOP 5 Portfolio
has outperformed the S&P 500 Index by nearly 12-to-1!
We Make Simple Trades:
It's important to understand that a portfolio doesn't have to be complicated to be a winner. There's nothing fancy here... no options... no day trading... no complex transactions. We simply focus on the top rated stocks in the top sectors. And to make things easy, we tell you EXACTLY what and when we buy and EXACTLY when we sell. So, in only takes about 15 minutes a week to keep you up to date with the portfolio.
What You Receive:
Before anyone becomes a paying member of our service, we feel it is important for them to understand exactly what they will be getting from us. So here's a summary of the reports you will begin receiving once you've signed up:
Real-Time Trade Alerts - We send a real-time ALERT! via email BEFORE every trade we make. These live reports tell members EXACTLY what we are about to do and why we are doing it. And to avoid any conflicts, it is our policy to wait until after we have received the ALERT to actually enter our trades. Each ALERT! includes:
- Company Name
- Ticker Symbol
- Position Size
- The Reasoning Behind the Trade - We believe it is vital to understand the reason WHY a trade is being made
Daily Round-Up - Every day we update members on trading activity, current holdings, and performance of our portfolio.
Daily State of the Markets - Dave M's daily column features market analysis and commentary each morning BEFORE the opening bell.
Easy to Use and Understand
One of the keys of the service is its ease of use. As we've stated, we do all the work in terms of research and analysis, and then provide you with concise updates - all in real-time. And with just 5 stocks in the portfolio, it's one of our easiest services to follow.
Let's Talk Price
The TOP 5 Portfolio is a "pro level" portfolio that can easily replace your broker recommendations and those underperforming mutual funds in your portfolio. In short, you can be your own portfolio manager for just $34.99/month! And as is the case with all of the subscription products on Portfolio Channel, the first month is on the house!
The analysis and information in this report and on our website is for informational purposes only. No part of the material
presented in this report or on our websites is intended as an investment recommendation or investment advice. Neither the
information nor any opinion expressed nor any Portfolio constitutes a solicitation to purchase or sell securities or any
investment program. The opinions and forecasts expressed are those of the editors and may not actually come to pass. The
opinions and viewpoints regarding the future of the markets should not be construed as recommendations of any specific
security nor specific investment advice. Investors should always consult an investment professional before making any
Any investment decisions must in all cases be made by the reader or by his or her investment adviser. Do NOT ever purchase any
security without doing sufficient research. There is no guarantee that the investment objectives outlined will actually come
to pass. All opinions expressed herein are subject to change without notice. Neither the editor, employees, nor any of their
affiliates shall have any liability for any loss sustained by anyone who has relied on the information provided.
The analysis provided is based on both technical and fundamental research and is provided “as is” without warranty of any
kind, either expressed or implied. Although the information contained is derived from sources which are believed to be
reliable, they cannot be guaranteed.
The information contained in this report is provided by Ridge Publishing Co. Inc. (Ridge). One of the principals of Ridge, Mr.
David Moenning, is also President and majority shareholder of Heritage Capital Management, Inc. (HCM) and Heritage Capital
Advisors (HCA), Chicago-based money management firms. HCM and HCA are registered an investment advisers. HCM also serves as a
sub-advisor to other investment advisory firms. Ridge is a publisher and has not registered as an investment adviser. Neither
HCM, HCA, nor Ridge is registered as a broker-dealer.
Employees and affiliates of HCM and Ridge may at times have positions in the securities referred to and may make purchases or
sales of these securities while publications are in circulation. Editors will indicate whether they or HCM has a position in
stocks or other securities mentioned in any publication. The disclosures will be accurate as of the time of publication and
may change thereafter without notice.
All indices and returns shown assume reinvestment of dividends and capital gains. Investments in equities carry an inherent
element of risk including the potential for significant loss of principal. Past performance is not an indication of future
Your actual results may differ from results reported for the model portfolio for many reasons, including, without limitation:
(i) performance results for the model portfolio do not reflect trading commissions that you may or may not incur; (ii)
performance results for the model portfolio do not account for the impact, if any, of certain market factors, such as lack of
liquidity, that may affect your results; (iii) the securities chosen for the model portfolio may be volatile, and although the
"purchase" or "sale" of a security in the model portfolio will not be made in the model portfolio until confirmation that the
email alert has been sent to all subscribers, delivery delays and other factors may cause the price you obtain to differ
substantially from the price at the time the alert was sent; and (iv) the prices of securities in the model portfolio at the
point in time you begin subscribing to our service may be higher than such prices at the time such stocks or options were
chosen for inclusion in the model portfolio.
Investments in equities carry an inherent element of risk including the potential for significant loss of principal. Past
performance is not an indication of future results.
Performance for the Top 5 Portfolio from 2006 - 12/15/2008 was based on the TopGunsTrading.com service "The Fab 5 Portfolio",
which was owned and operated by David Moenning prior to creating StateoftheMarkets.com. Performance calculated from 12/15/2008
- present has been live on StateoftheMarkets.com as the "Top 5 Portfolio".