Marketocracy: A Triple Play

10/10/2003 12:00 am EST

Focus:

Ken Kam

CEO, Marketocracy, Inc.

Marketocracy, well-known for its industry leading mutual funds and its unique Web site, which tracks the virtual trading activity of some 50,000 investors, recently began the Marketocracy Stock Alerts service. Says Ken Kam, "We rank the stock picking ability of our investors and segment them into the ‘best’ and the ‘rest’. From the best, we pick three strong buys." Here are excerpts from their latest buys.

"Advanced Micro Devices (AMD NYSE) is a semiconductor manufacturer with manufacturing facilities in the US, Europe, and Asia. The best investors increased their holdings by 7%, while the rest decreased their holdings by 1%. The best investors have been holding a large position in AMD since April. When AMD rose 55% in August, the best let the price increase grow the position. There was a little profit taking in the beginning of September. Then, when the price dropped by 17% the best investors increased their holdings in AMD by 15%, with most of the increase happening last week. The rest have been selling a little.

"Zoran (ZRAN NASDAQ) provides digital solutions-on-a-chip for applications in the growing consumer electronics markets, e.g., high-performance digital audio, video and imaging applications. Zoran-based DVD products and digital cameras are in millions of homes worldwide. The best investors have been holding a relatively large position in ZRAN, a mid-cap stock, since April, buying more when the price dips. When the price dropped by 14% in the first half of August, the best increased their position by 69% and two weeks ago, as the price was dropping 25% the best increased their position by 7% putting ZRAN in the top 3% of all holdings in the best portfolio.

"Epix Medical (EPIX NASDAQ) is a medical products company whose principal product, MS-325, is being developed to provide targeted contrast agents that improve the diagnostic quality of visual imaging of the body’s arteries and veins through a type of MRI specific to imaging the vascular system known as magnetic resonance angiography (MRA). The stock is not widely followed or understood. Buying on the dips and selling on the upswings, the best investors increased their position by 40% in mid-August when the price dropped by 20%. Profit taking occurred in early September, then we saw a 40% increase in holdings when the price dropped by 25%. Meanwhile, the rest have dumped 38% of their holdings in EPIX."

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