We believe that investing is a science and that only a disciplined, pragmatic approach can achieve positive results for clients. This is why our process for finding and identifying successful growth companies begins and ends with a predetermined set of criteria in order to remove as much emotion and bias from our stock selection as possible.
Our Process
We start by analyzing 1,500 chart patterns weekly with the goal of locating emerging sectors, stocks,
and/or general market directions. After we identify sectors and the stocks within those sectors that meet our technical screen, we utilize fundamental analysis to determine the best individual stocks to own. We call the totality of this endeavor the ROCKET process which is outlined below:
- Rapid revenue and earnings growth
- Obvious leader in its category
- Competitive edge within its sector
- Keep it small – greater upside potential
- Economic effects of supply/demand
- Technical analysis to decide timing
We then compare favorable stocks to our two Watch Lists of 80 stocks.
The final step in our methodology is executed by constantly monitoring both "Watch Lists," both technically and fundamentally, to see if they should be added to the portfolio as a new position or as a replacement for a current holding. The end product results in a portfolio of 20-30 rapidly growing small companies that are diversified across all 12 sectors of the U.S. economy.
To find out more information on how we use technical analysis, read the article on JD which was featured in the April 2004 edition of the Twin Cities Business Monthly.
