A Stock Picker's Trio...

04/28/2006 12:00 am EST


Ken Kam

CEO, Marketocracy, Inc.

I'd highly recommend that you save time in your Money Show schedule to hear Ken Kam, one of the industry's most insightful advisors and fund managers, who also operates the innovative Marketocracy Web site. Here's a sample of his advice.

"By monitoring the activity of some 60,000+ investors we isolate the latest buys from those with the best stock picking records. For example, the 'best' stock pickers have been buying Infosonics (IFO ASE), one of the largest and fastest growing providers of wireless handsets and accessories in the US and Latin America. The company has a micro capitalization of less than $80 million, but has revenue of over $145 million and reported $0.12 for the previous quarter with a higher tax rate.

"The 'best Investors' have increased their holdings by almost 100% over the past month as the stock looks like it is forming a nice bottom. The stock has fallen sharply since the beginning of the year after the company pre-announced earnings that disappointed some institutional investors. At these prices, the 'best' believe the stock is very attractive as the company sells at .5 times sales and is growing with a higher tax rate in a growing industry.

"The 'best' have also been buying US Global Investors (GROW NASDAQ). Created in 1968, US Global is primarily a mutual fund with 14 funds. All of the equity funds have had great first quarters and are outperforming their respective peer groups. The company also has the Lipper number one ranked natural resources fund for the three-year period ending December 31, 2005; the Global Resources Fund (PSPFX ) has over $1 billion in assets under management. GROW has a market cap of $125 million.

"The 'best Investors' have had a position in GROW since 2003 when the stock was trading for less than $3. The confidence and foresight was finally rewarded as the stock has soared over the past six months by over 200%. The company is finally getting recognized as a strong asset management company, and the 'best' continue to build on their position. The stock is now in the top 7% of their portfolios.

"With fiscal 2006 sales expected to be more than $27 billion, Federated Department Stores (FD NYSE) operates more than 850 department stores including Macy's and Bloomingdale's. The company has a market cap of $20 billion and has had significant insider buying. A director purchased $20 million worth of stock last month in this price range, which has raised the eyebrows of many on Wall Street. Overall, the 'best' investors have increased their holdings in Federated by 74% since the beginning of the year."

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