Chris Perruna Stocks in Review 2007

2007 Case Study/ Stock of the Day/ Highlighted Stocks Update
It was a phenomenal year for trend traders of small and mid cap growth stocks! Of all the stocks mentioned on this blog, only 32 were covered extensively. These stocks were detailed in case studies, stock of the day analysis or highlighted in one or more daily screens.

Most covered CP stocks in 2007:

• BIDU: 31 times, 314% peak gain (debut 4/25/07 at $103.50; current price $399.67)
• JASO: 21 times, 211% peak gain (debut on 6/13/07 at $24.55; current price $75.02)
• EDU: 18 times, 149% peak gain (debut on 2/2/07 at $36.93; current price $84.06)
• MA: 17 Times, 112% peak gain (debut on 4/2/07 at $107.28; current price $209.48)
• MR: 13 times, 81% peak gain (debut on 1/30/07 at $24.95; current price $43.41)

Overall, the group of 32 performed marvelously over the course of the year and their results would have made most investors very happy; a solid expectancy for a trend buying system during an up-year.

A simple buy and hold strategy (through Wednesday’s closing prices) would have the portfolio at 17 winners and 15 losers. Please note that I do not recommend buy and hold investing. Sell rules are extremely important and can be found throughout the site. Money management rules are a must while investing but I decided to show you what a simple buy and hold strategy could do if you invest in young growth stocks while trending higher.

General Statistics:
53% win ratio (69% winning percentage using sell rules)
74.9% Average Winning Trade
23.9% Average losing Trade

314% – Top Peak Gainer
42.1% – Worst Loser (does not include sell rules – approx 10% max loss would be incurred).

149% – JSDA, Top Peak Gainer currently showing loss (would have been sold for 87% gain)

Employing a basic 10% sell stop from purchase price while using the simple buy and hold strategy would currently have the portfolio of 32 stocks at a collective gain of 43.4% or almost 10 times that of the S&P 500.

Not bad when covering a wide variety of stocks on a blog over the course of one year.

The largest gainer (using Wednesday’s closing prices) in the portfolio would be BIDU at 286.2% and the biggest loser would be SHLD at 42.1%. So much for buying value (SHLD)! Actually, I documented what I did wrong with that purchase and noted that it was not a typical trend buy and that is why I was handed a swift kick in the ass. Stick with what you know best and don’t try to be slick.

*Four of the 32 stocks would have been stopped out immediately with a maximum 10% loss from purchase price: SHLD, MPW, MFB, SMOD and PRXI; so the 23.9% average loss is skewed greatly.

Overall, ten of the thirty two stocks would have eventually been closed with a loss or 31% of all stocks covered.

Seven of the 17 stocks currently showing a gain would have been stopped out for a gain using a basic retracement stop strategy. JSDA would have been the largest winner in this category that currently shows a loss; it would have captured an 86.9% retracement gain (25% from high). ROCM, GROW and LOOP are the others.

PTR, VMW and HMIN would have also been closed out with gains even though they currently show gains in the buy and hold graphic through Wednesday, December 26, 2007.

Seven of the thirty two stocks (22%) went on to make triple digit gains based on their peak price after the purchase price on the blog (or the date of the analysis). These stocks were:

• BIDU: 314.7%
• JASO: 211.6%
• FSLR: 179.7%
• EDU: 149.5%
• JSDA: 149.2%
• PTR: 116.3%
• MA: 111.8%

Listed are the thirty two covered stocks in alphabetical order:
BIDU, BKC, BX, CSH, DVR, EDU, FCSX, FSLR, GRMN, GROW, GTLS, HMIN, HWCC, ICON, JASO, JSDA, LDK, LOOP, MA, MFB, MPW, MR, OMTR, PRXI, PTR, ROCM, SHLD, SLW, SMOD, SNCR, SSRX, VMW