Edited by author 01-05-2006 11:49 PM
USING ACE'S STOCKS & STRATEGIES FOR GAINFUL INVESTING
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                                                  Foreword

This write-up attempts to describe to the reader a simple but effective structure for investing in stocks (which is an inherently complex subject); how the basic elements in the latter structure are inter-related and interacts with each other; how ACE'S Stocks could supportively fit in the subject structure; and how the reader could use ACE'S Stock information and strategies to invest with confidence and be successful in making their invested monies grow.

In the case whereby the reader is a starting stock investor, Items 1 and 2 are included below. Otherwise, the experienced investor can skip Items 1 to 2 and begin with Item 3.

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1. Set the amount of funding of your stock portfolio. Decide and commit the total amount of funds that you will invest in stocks (for example, $10,000).

2. Set the number of "splits" for your portfolio's fund. Decide on the approximate number of "business sectors" wherein you will split your portfolio's fund. For example, if you decide to divide the $10,000 in your portfolio into 5 different sectors, you will thus allocate about $2,000 to a stock that you plan to buy for each of the 5 sectors.

This division of your portfolio's funds into different sectors is for diversification purposes. Diversification is a portfolio protection strategy where you spread the risk of capital loss to a number of stocks (rather than to just 1 stock).

NOTES: 1. A "sector" is the term used to designate-and-classify companies in the market with similar characteristics. For example, companies engaged in the business of exploration, processing, and/or distribution of oil and its by-products are classified in the Basic Materials sector. Other market sectors are the Technology, Services, Consumer Goods, etc. sectors); 2. You can get a
stock's sector and industry classification from financial web sites (e.g., at Yahoo! Finance). Yahoo lists the market Sectors at this link; and the Industry Groups (within a particular sector) at this link; 3. A limited version of portfolio diversification could be made by industry - rather than by sector.

3. Make an "A List" of ACE'S stocks-to-buy. Using ACE'S stock picks, make an A List containing the names of stocks that have higher ASG values (relative to other ACE'S stocks), are your personal favorites (even if their ASG values are relatively lower), or are a combination of the latter two. This would be your short list of prospective stocks-to-buy. Your A List should contain a small-&-manageable number of stock names. 1-3 stock names would be good.

ACE'S selects stocks that have been graded with high (i.e., Good to Excellent) ASG values. 40.0 - 49.9 ASGs are Good; 50.0 - 59.9 ASGs are Very Good; and 60.0 - 69.9 ASGs are Excellent. Regularly visit and review ACE'S stock picks and favor the stocks that have high ASGs. ACE'S does not pick stocks whose ASGs are less than 40.0.

Note that ACE'S stock picks have a timeliness element. That is, ACE'S current/recent stock picks, generally speaking, are "better" buys than "older" stock picks (because of price gains that possibly have been realized by the latter stocks). You can use this timeliness element to your advantage by favoring ACE'S current/recent stock picks (with relatively high ASG values) for your A List.

4. Get set to buy your target stock(s). Note that even if your ACE'S stocks-to-buy have Good-to-Excellent ASG values, you could further optimize the long-term price performance of the stock by buying the stock at an advantageous price.

Buying a stock at an advantageous price is realized in the following manner: In a given time frame, (for example, 5 seconds, 1 minute, 1 hour, 1 day, etc.) the price of your target stock will fluctuate (unless the stock is an unusual state of trading inactivity). The objective is to buy the target stock at a low point(s) in its price fluctuation. In this dynamic price flux, take care that you do not buy the stock at-or-near the top of its price rise (i.e., which is conceptually designated as "Point C"); or while it is still in a continuing price slide. The ideal buy point is at the start of a price run up (i.e., "Point B", conceptually) or at the bottom of a price fall (i.e., "Point A", conceptually).

Note that in some cases, Point A and Point B (i.e., "Point A/B", conceptually) are the same point in a stock's price movement. To identify these price "points", you would need to observe the price pattern of the target stock(s). You would thus need to monitor the stock's price behavior for an amount of time. Studying a stock's price charts and historical prices could help you in that effort.

You would also need the price quotes of the target stock(s) in "real-time" (since price charts and historical prices usually are not shown in "real-time"). "Real-time" price is a stock's market price existent at the moment when you requested for it. You can get this real-time quote service from your broker (either online via your computer or by phone with a broker rep). Some financial web sites (e.g., Yahoo! Finance) also provides this quote service for free. Double-check though that the site's quote are truely real-time and not on a "delayed" basis.

Realize at the outset that recognizing the above "points" would not be an easy task; that sometimes the "point(s)" could pass by you; and that, in some cases, the "points" might take days, hours, or seconds to develop where you anticipate it to be.

When you gauge that the target stock's price is at some reasonable-&-acceptable closeness to Point A (i.e., at-or-near the bottom of the stock's price fall) &/or Point B (i.e., at-or-near the start of the stock's price run up), act and buy the stock.

NOTE: The reason for having an A List is to optimize your time and take advantage of "windows of opportunity". Let us say that you have 1-3 stock names in your list. When you are watching the price behavior of Stock 1, the stock's price might be at some distance from the preferred Point A/B buy point(s) and, thus, is not at an advantageous price point to buy. You are thus waiting for Stock 1's price to move to Point A/B's buy point(s). While in this wait mode, if you were also watching the price behavior of the other stocks in your A List, another stock (e.g., Stock 2) might already be at its Point A/B. Then in the latter case, a "window of opportunity" had shown itself and you can then buy Stock 2.

5. Protect your invested capital. If you wish to limit the possible loss in capital for the stock(s) that you bought, you could set a market "stop-limit" order to sell all or a portion of a particular stock only after a specified price of the stock has been reached. In this manner, you set a "floor" on how low a price fall would be acceptable to you for a particular stock in your portfolio. You determine-&-set the acceptable "limit" price for the stock.

6. Record your stock trades. Note down and maintain information about your stock trades (i.e., the stocks you bought or sold). We can call this as your "Trades File". A stock's basic information such as the stock name, symbol, market exchange, business sector, industry group, date bought, number of shares bought/sold, buy/sell price/share, broker fees, total cost, gain/loss, etc. are recorded-&-kept in this file.

7. Diversify your stock portfolio. This item is related to Item 2 above. Remember to apply the strategy in your stock buys - diversify. When you buy your next stock, look in your Trades File and review the business sector(s) of the stocks in the File. Knowing the stock sectors that you already have, you then include in your A List, stocks in business sectors that is/are not yet in your Trades File. (SEE: Item 2 above).

8. Protect your portfolio's gain. This item is related to Item 5 above. If your stock portfolio have made appreciable gains (and you have implemented a "stop-limit" protection strategy), protect your portfolio's gains by "upping" the value of the particular stock(s) "stop-limit" sell order.

9. Realize your portfolio's gain (or loss). If a stock(s) in your portfolio have reached your target level of appreciation, you then have the option of realizing your gain by selling the particular stock(s); or opt to retain the stock for possible further gains. Conversely, if a stock(s) in your portfolio have reached an unacceptable level of loss, you then have the option of minimizing your loss by selling the particular stock(s); or opt to retain the stock for possible price recovery.

NOTE: Starting in 2006, ACE'S will publish the month-to-month ASGs of its current stock picks. A stock pick's ASG would change somewhat from one month to the next. A maintained or rising ASG trend would indicate continued or improving "Goodness" or "Excellence" for a particular stock. While a falling ASG trend would indicate a diminishing "Goodness" or "Excellence" for a particular stock. The investor would thus have an additional sell-or-hold aid to gauge the performance prospects, in the short- to mid-term, of a particular stock.


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Copyrighted By: AcesStocksAces
Visit our web site at: http://www.acesstocksaces.com/; or
Read a variety of interesting & useful info at our Discussion Board at: http://www.quicktopic.com/34/H/PJTUKg2Ke6av/m15

In the report, "Spotting the next super-stocks" (MSN Money 12/7/05), the author Jon Markman wrote that the leading stocks over the last 6 years are not the usual big-name heroes like eBay, Medimmune or Starbucks. Rather, the top leader in this elite set makes the least exotic products: soda pop.

According to the report, the top 5 companies that have made the biggest gains since January 1, 2000 were;

Hansen Natural Corp. (HANS): 3,739% gain
KCS Energy Inc. (KCS): 3,251% gain
Iris International Inc. (IRIS): 3,248% gain
Amedisys Inc. (AMED): 3,181% gain
Quicksilver Resources Inc. (KWK): 2,929% gain

The secrets of their success. The report noted that "the incredible success of these unassuming businesses provides investors with valuable insights into the character of our age and what makes stocks go up.

"It's obviously not glamorous CEOs, hyped-up investor-relations campaigns or sexy products, although none of those things will actually hurt. It's mainly about finding an underappreciated niche that's small enough to be ignored by much larger players -- and then developing a pipeline of products that can be sold for many years at relatively high margins to an increasing number of customers. All of these market-leading companies crush their peers on returns on capital and pricing power: business fundamentals that allow them to continually grow into valuations that seem perpetually cheap".

How did ACE'S (short for "AcesStocksAces") do with the super-stocks? ACE'S was launched in October 2000. ACE'S was able to pick 2 of the super-stocks: KCS Energy (KCS) was one of ACE'S stock picks for May 2001; and Hansen Natural (HANS) was picked by ACE'S in July 8, 2005. Picking 2 of the 5 super stocks is a 40% hit rate. That is not too bad.

NOTE: If the above links are not enabled on your screen, visit ACE'S Discussion Board at the following link: http://www.quicktopic.com/34/H/PJTUKg2Ke6av/p16.1

You are also most welcome to visit our web site at: http://www.acesstocksaces.com

or view our variety of interesting Investor Resources at: http://www.acesstocksaces.com/resources.htm

ACE'S High-graded Stock Pick for Dec. 2005
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ACE'S Dec. 2005 Pick-of-the-Month stock report was recently posted and is now available at the web site below;

http://www.acesstocksaces.com

The subject stock has a (rare) high ASG grade of 53.85 (which is Excellent, with ASGs of 30.0-39.9 being Average). The subject company is a a leading global producer and marketer of materials used in the construction industry. The company has operations in North, Central, and South America; Europe; the Caribbean; Asia; and Africa. The stock is a large-cap value company that is expected to outperform the market over the next six months.

You could order this stock's exclusive and valuable report at the attractive price of $25.00. Your order could be made at the link below;

http://www.acesstocksaces.com/order.htm

You can use ACE'S time-proven and exclusive stock information to invest with confidence and help you to make your invested monies grow.

Edited by author 12-14-2005 01:42 AM
AOL Staff's Top 10 Stocks for 2006 - ASG Graded by ACE'S
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(BMET) Biomet Inc. (12/13/05 Price: $37.00) ~ 33.53 ASG (Average)
(BMY) Bristol-Myers Squibb Inc. (12/13/05 Price: $21.55) ~ 14.60 ASG (Very Poor)
(CMP) Compass Minerals Int'l Inc. (12/13/05 Price: $24.99) ~ 25.80 ASG (Poor)
(CUTR) Cutera Inc. (12/13/05: $28.25) ~ 38.45 ASG (Average)
(FOXH) FoxHollow Technologies Inc. (12/13/05 Price: $38.97) ~ 20.35 ASG (Poor)
(GOOG) Google Inc. (12/13/05 Price: $417.49) ~ 38.35 ASG (Average)
(L) Liberty Medio Corp. (12/13/05 Price: $7.80) ~ 24.70 ASG (Poor)
(NDAQ) Nasdaq Stock Market Inc. (12/13/05 Price: $37.07) ~ 34.25 ASG (Average)
(PTR) Petrochina Co Ltd Ad (12/13/05 Price: $81.75) ~ (Insuff. data)  
(SIRI) Sirius Satellite Radio Inc. (12/13/05 Price: $7.01) ~ 2.75 ASG (Very Poor)

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Note: ASG Grades

 Excellent: 60.00 plus
 Very Good: 50.00 - 59.99
 Good: 40.00 - 49.99
 Average: 30.00 - 39.99
 Poor: 20.00 - 29.99
 Very Poor: Less than 20.00

Edited by author 12-11-2005 03:55 PM
(ACE'S) INVESTING IN STOCKS - A BEGINNER'S GUIDE
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This is a simplified overview of a stock investing method. This guide should not be construed as the definitive, sure-fire method for successfully investing in stocks. There are a variety of methods that are used by investors so that their investment actions could yield for them their objective financial gains. This simplified overview is but one of those methods. The reader should adopt a method that he or she believes is or would be effective.

1. AMASS A BODY OF KNOWLEDGE ABOUT STOCKS

    Read and know as much as you could about stocks (e.g., what is a "stock", share price, the stock market, growth industries, growth companies, value companies, market indices, etc.); related fields of knowledge (e.g., economics, psychology, finance, etc.); and Internet resources (where you could tap into a tremendous amount of valuable investment information).

   Know what is happening in the world - nationally, internationally and locally; and, specifically, in the business-and-investment world. Read the business, investment and general news, ideally, on a daily basis. You can also make use of the numerous Internet sites that provides excellent business and investment information (such as CNN Money, MSN Money, ACE's Investor Resources, etc.).

   Start studying and gathering information on specific stocks that your studies have identified as prospective "buy" stocks. There are numerous publications and Internet sites where you can get detailed information about a particular company's stock. Some of these are Yahoo Finance, Reuters, ACE'S Stock Pick-of-the-Month Reports, etc.)

   You have a lot of ground to cover here ... and having done that ... your knowledge would still not be complete. There is always something new to know about the stock business.

(SEE:\LINK To: InvestorWords dictionary of investment terms)

2. SET ASIDE INVESTMENT FUNDS

   These are funds that you can commit for stock investment for the "long term" (i.e., for the span of time that you project the funds to be invested - e.g., 12 months, 2 years, 3 years, etc.). These should not be funds that you or your family have budgeted for a near term expense item (for example, mortgage payments for the next quarter). Realize at the outset that your funds, when invested, could bring you appreciable gains or loss.

3. SET YOUR INVESTMENT GOAL

   Set an objective for your investment. Would you want your investment to generate income (i.e., dividends), preserve its value, appreciate in value, etc. Set a defined goal. The goal you set related to the degree of risks that you are willing to assume, would determine the type of stocks that you invest in (e.g.; higher return stocks are usually riskier; while "safer" stocks usually have lower rates of appreciation).

4. ESTABLISH-&-FUND A BROKER ACCOUNT

   Determine if you will need a "full service" broker (who provides a lot of "hand holding" to its clients. Their trade fees are usually higher); or a "discount broker" (in which case you basically do your own trading. Their trade fees are usually lower). Compare the brokers' services, fees, funding requirements, "friendliness", ease-of-use, etc. before you select your broker. Regarding the "friendliness" factor: Some brokers enables you to set-up an account online, literally in minutes. Some brokers requires you to fill-up a 4-page application form, and have the form mailed or dropped at their office.

(SEE:\LINK To: StockbrokerGuides and Motley Fool's broker comparison tables; and MSN Money's write-up: "How to choose the right brokerage for you").

5. GATHER-ANALYZE-&-IDENTIFY YOUR "BUY" STOCK(S)

   Make of list of (i.e., gather) your prospective "buy" stocks. From this list could be a stock (or stocks) with the attributes of a "high gainer". How do you winnow the "high gainer" stock from your list of prospective stocks? How do you get from Point A (looking at a list of stock names) to Point B (checking a name as your "buy" stock)?

   The studies that you did in Step 1 comes into play here. Would you be making your stock selection based on "subjective" factors or "objective" factors. By "subjective" are factors such as an evening news mention of Stock X merging with Stock Y; or that "Happy Hamburger" eatery always have long lines of customers. By "objective" are quantified factors such as a stock's price performance, stock's "fundamentals" (e.g., PEs, EPS, return on equites, profit margin, price history, etc.), financial statements, valuation ratios, etc. ACE'S primarily use "objective" factors in its stock evaluation and selection.

   Use whichever or whatever method works for you. There is no one sure-fire method that will guarantee success in your stock selection. Note that what was described in this section is but a minuscule area of a vast and complex subject. So what does one, who is getting started in stock investing, to do? Perhaps, a mantra. Essentially all the volumes of material printed on the subject of "picking the right stock and making millions in the stock market" could be summed in three words - "cause and effect" (the mantra).

   What we mean by that mantra is that today's stock investing philosophies basically says that an attribute (or attributes) of a company (for example, the high earnings of ABC Company), the "cause", would result in the market's giving ABC stock a higher valuation (the "effect"). Different philosophies of investing will have different "causes" (e.g., dollar sales per employee, management's efficiency, earnings growth, product dominance, service or product monopoly, etc.). Which mantra for you to follow? Critically observe the results of the philosophy (and disregard the the hype surrounding the philosophy or philosophy's guru). Focus on how the philosophy have actually performed, in hard figures, historically. Then, make an objective choice.

(SEE:\LINK To: Motley Fool's "Analyzing Stocks"; and MSN Money's "A Smarter Way to Spot Winning Stocks" write-ups)

6. BUY YOUR "IDENTIFIED" STOCK

   You have reached a decision point and have identified a stock to buy. You then connect with your broker (either by telephone or online, depending on your broker account) and execute your "buy". Although pretty much straight forward, there are some basic elements that you should master in trading (instructions-to-your-broker or actions such as "market order", "limit order", "stop limit order", "day order", "good-till-cancelled" order, etc. Mis-instructing a "sell limit order" for "sell stop limit order" set at $12.34 a share for X number of shares of ABC stock could give you unwanted trade results).

(SEE:\LINK To: Motley Fool's "Picking A Broker" write-up)

7. MONITOR THE PERFORMANCE OF YOUR STOCK

   You now have X number of shares of ABC Company bought at $12.34 per share for a total cost to you of $1,234.00. The stock has gained $9.25 a share since the time you bought it. That is an appreciation of about 75%. Note what was stated in Step 3 - Set an investment goal. What would you do if a stock has gained 75%? 100%? Would you sell then and realize your gain; or let the stock gain some more? What would you do if your stock's price drops 75%? Would you sell then and cut your losses; or keep the stock and hope that the stock recovers?

   What you do in these stock scenarios would depend completely on your assessment of your investment's environment. There is no stock book, guru or formula that would predict to you with certainty what is going to happen to the value of your stock 1 second after you made a trade action (or non-action) on your stock.

8. BUILD A PORTFOLIO OF YOUR STOCKS

   Your "portfolio" of stocks is the collection of stocks that you have bought. Your portfolio could be composed of shares of one company or more than one company. There are different ways of designing your portfolio: One is to pre-allocate your investable funds, before you start buying stocks, to X number of companies. For example: You have $10,000 in investable funds and you have decided that you will invest those funds equally into 5 companies. Thus, when you buy your first stock, you buy X number of shares whose total cost (plus broker fees) would equate closest to $2,000.

   Now, why would you want to split your portfolio into, for example, 5 companies (desirably in different industry sectors). The main reason is to spread your risk. If your portfolio is composed of one stock and if that one stock suffers a severe setback (by one market cause or another) your portfolio will thus feel the full severity of that one setback. However, if you have a "diversified" portfolio, the setback of one stock (in one sector) would localize the impact to just one sector of your portfolio.

(SEE:\LINK To: Motley Fool's "Are 20 Stocks Too Many?" write-up)

9. SELL THE STOCK

   At some point, you probably will decide to sell a stock to convert the stock's market value to cash. Now you have cash-on-hand ... and can use that cash for re-investment ... or for non-investment application.

(SEE:\LINK To: Smartmoney's "How to Sell Stocks" write-up)

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By: AcesStocksAces
Visit our web site at: http://www.acesstocksaces.com

Get ACE'S high-rated stock pick for Nov. 2005. Yours FREE!
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A 2005 Holiday treat.

The free stock pick is at this link: http://www.acesstocksaces.com/login.htm

Click the [Login] button for the "November 2005 Stock Pick" line item; and login using "guest2511" (as your login name) and "picknov30" (for your password).

Note the stock's price movement: on Nov. 1, 2005: $36.90 a share; and on Nov. 30, 2005: $45.50 a share. Check what price the stock will have on Dec. 30, 2005.

Happy Holidays!

AcesStocksAces