Trading is not a game of exacts. Perfectionists need not apply. Markets are made up of many irration...
Triple Play from Ken Kam
08/08/2003 12:00 am EST
Marketocracy analyzes the comparative trading activity between the best performing investors and the rest, based on following some 50,000 investors who operate virtual portfolios on its Web site. Says Ken Kam, "We compare over 10,000 stocks to identify around 300 with strong indicators and then identify the top three strong buys."
"SCO Group (SCOX NASDAQ) [Recent Price $12.90], formerly known as Caldera International is a developer and provider of software and services related to the development, deployment, and management of Linux-based specialized servers and Internet devices. Best increased holdings by +33%. Rest decreased holdings by -21% The best investors have been steadily growing their holdings in SCOX since mid-June to become one of the top 6% of all positions in the best portfolio. Meanwhile, the rest have been consistently selling big chunks since the beginning of June.
"EPIQ Systems. (EPIQ NASDAQ) [$19.53] is a national provider of technology-based products and services to law firms and attorneys working in the federal bankruptcy system and to companies that have filed for bankruptcy. Best increased holdings by +41%. Rest decreased holdings by -1%. After several weeks of measured buying and selling their relatively large position in EPIQ, the best investors took a clear direction to increase holdings by 41% to make it one of the top 7% of holdings in the portfolio. Many of the best investors were buying -- not selling. So, only the rest were selling, which they have been doing for a few months.
"Kraft Foods (KFT NYSE) [$28.55] manufactures and markets packaged retail food products, consisting principally of beverages, cheese, snacks, convenient meals, and various packaged grocery products. Best increased holdings by +41%. Rest decreased holdings by -4%. The best investors have been consistently adding to their position in KFT since mid-June, then almost doubled their holdings to make it one of the top 12% of the best portfolio. Meanwhile the rest have been slowly selling down their relatively small position in KFT, 4% of it last period as analysts have changed their consensus opinions from ‘buy’ to ‘hold.’"
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