Who picks stocks for their clients?

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Jan 21, 2006 5:24 pm

Just wanted to see who else is picking individual stocks out there? What method and time frames are you working in? Using any third party research? How about real time streamers?


I have long used IBD and Bill Oneil's method of technical analysis. I feel I have a good overall success rate and like the idea of holding stocks for at least weeks or months. I dont want to be in the churning game. I am looking for a new steaming service. I have looked at money.net and freerealtime.com and would appreciate any feedback on these two services or any others you all are using.


Is anyone paying for third party research. Several of the guys in my office are buying Zack's for $30/month through LPL. However, I havent used them or seen much of their stuff. Are you ML guys still using the Mallick (sp?) method?


Thanks for any feedback or thoughts.

Jan 21, 2006 5:31 pm

Been using Mallach strategy for individual stock portfolios. Consults and MLAP for the rest. Clients like the "process" after reading his book. Somewhat black and white, which at least provides a some rules that they can understand and takes some of the mystery out of the stock selection process. My 2 cents.

Jan 21, 2006 5:56 pm

I haven't looked at Zacks yet.  The S&P package available through LPL is pretty good.

Jan 21, 2006 6:05 pm
joedabrkr:

I haven't looked at Zacks yet.  The S&P package available through LPL is pretty good.


Are you getting the online stock report for $25? Are you using any kind of streaming market prices?

Jan 21, 2006 6:08 pm
giff74:
joedabrkr:

I haven't looked at Zacks yet.  The S&P package available through LPL is pretty good.


Are you getting the online stock report for $25? Are you using any kind of streaming market prices?



I have the full S&P online package.  No streaming market prices.  Frankly, too, using the LPL quote system has made me kinda nuts.  I feel sometimes like I'm fighting with one hand behind my back.  Apparently we have a corporate relationship with E-signal.  I haven't had time yet to call the guy but I have his number.  PM me if you want it.


Hope your transition is going well!

Jan 21, 2006 6:37 pm
giff74:

I am looking for a new steaming service. I have looked at

money.net and freerealtime.com and would appreciate any feedback on

these two services or any others you all are using.





This works for me:

http://about.reuters.com/productinfo/bridgechannel/



I don't think you can be in the equities game and be unprepared, Good Luc



Jan 22, 2006 10:16 am
da bears:

Been using Mallach strategy for individual stock
portfolios. Consults and MLAP for the rest. Clients like the "process"
after reading his book. Somewhat black and white, which at least
provides a some rules that they can understand and takes some of
the mystery out of the stock selection process. My 2 cents.





I run Mallach and have posted plus 20% in each of the last 3 years with
it.  Run it through PIA and get the AIM reports...its a REFERRAL
MACHINE.  For you ML folks, the Bernstein Growth and Vlaue 10 are
also real easy, and effective strategies as a satellite.  



Adopting individual stock portfolios did nothing less than
revolutionize my business, and helped it grow by more that 200% over
the last 5 years.

Jan 22, 2006 6:33 pm
giff74:

Just wanted to see who else is picking individual stocks out there? What method and time frames are you working in? Using any third party research? How about real time streamers?



Don't do it myself...but the one team in my office who does uses Dorsey/Wright...quite successfully.


Jan 22, 2006 7:53 pm

I don't use them. According to babbling looney, I'm not an advisor because of this.

Jan 23, 2006 12:17 pm

What's the basics of Mallach's system?  I read a little about his book and am curious as to what makes his system tick?  From the little I read it sounded kind of like Bill O'neil's approach.  Thanks.

Jan 23, 2006 11:40 pm

I have never read Mallach's book, but I think the idea is based on earnings and the rate at which earnings are accelerating. The idea being if you have rapidly accelerating earnings that should drive up the price. This is fundamental analysis is usually takes into account things like earnings, P/E, EPS notice a trend.


Technical analysis, used by Bill O'neil and his crew at IBD is based on the technical aspects on a chart. What you are really looking at is the relationship between the price and volume. Someon who is really good at technical analysis could render their verdict on buying a stock with the chart, the price and volume numbers and the kind of industry the stock is in.

Please forgive me if I am misunderstanding the Mallach method. Maybe a ML guy/gal could help us at on this one.

Jan 24, 2006 8:21 pm

Mallachs book is a story, not much more.  His deal is simply the
fact that  events affect companies, earnings, and ultimately
prices.  By leveraging the work the analysists, boiling it down to
the material that matters when selecting companies, playing into such
events, and presenting it in a strategy that is sale-able and
understandable to clients. 



It is basically based on earnings estimate increases, ROE to P/E
relationship, earnings estimate decreases, and following a strict buy
and sell discipline in a quantitative format.

Jan 24, 2006 8:26 pm

Thanks Rightway.

Jan 25, 2006 1:14 pm
rightway:
da bears:

Been using Mallach strategy for individual stock portfolios. Consults and MLAP for the rest. Clients like the "process" after reading his book. Somewhat black and white, which at least provides a some rules that they can understand and takes some of the mystery out of the stock selection process. My 2 cents.



I run Mallach and have posted plus 20% in each of the last 3 years with it.  Run it through PIA and get the AIM reports...its a REFERRAL MACHINE.  For you ML folks, the Bernstein Growth and Vlaue 10 are also real easy, and effective strategies as a satellite.  

Adopting individual stock portfolios did nothing less than revolutionize my business, and helped it grow by more that 200% over the last 5 years.


What kind of an account do you trade stocks in?  Do you charge a management fee or just take comissions.  Thanks.

Jan 25, 2006 1:27 pm
rightway:

Mallachs book is a story, not much more.  His deal is simply the fact that  events affect companies, earnings, and ultimately prices.  By leveraging the work the analysists, boiling it down to the material that matters when selecting companies, playing into such events, and presenting it in a strategy that is sale-able and understandable to clients. 

It is basically based on earnings estimate increases, ROE to P/E relationship, earnings estimate decreases, and following a strict buy and sell discipline in a quantitative format.


IIRC, (on his growth strategy) didn't two upgrades in earnings estimates equal a buy and a downgrade in estimates equal a sell? I used it and loved it. It was a way to take all the blather from an analyst and focus buy/sell decisions on what really matters.<?:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office" />

Jan 26, 2006 6:42 am
mikebutler222:
rightway:

Mallachs book is a story, not
much more.  His deal is simply the fact that  events affect
companies, earnings, and ultimately prices.  By leveraging the
work the analysists, boiling it down to the material that matters when
selecting companies, playing into such events, and presenting it in a
strategy that is sale-able and understandable to clients. 

It
is basically based on earnings estimate increases, ROE to P/E
relationship, earnings estimate decreases, and following a strict buy
and sell discipline in a quantitative format.


IIRC,
(on his growth strategy) didn't two upgrades in earnings estimates
equal a buy and a downgrade in estimates equal a sell? I used it and
loved it. It was a way to take all the blather from an analyst and
focus buy/sell decisions on what really matters.





Mike- Pretty much, Yes.  There is an ROA to P/S csreen as wel for
the GARP portfolio, and a "no dividiend" rule for the aggressive growth
screen, etc...  but basically you got it.



I trade this is a discretionary advisory account where a fee is charged
based on the size fo the account.  It is an institutional style of
structure (I can facilitate the purchase or sale of a security in many
accounts simultaniously with 1 trade entry) so it is quite efficient.

Jan 26, 2006 12:55 pm

I trade stocks in my clients accounts on a discretionary basis also.  There are many ways I find the stocks to buy but one of the main ways is to screen five star stocks on S&P that have poor relative strength.  This gets me a list of companies with decent fundamentals that are beaten down.  I then go through them all and look for good buy prices using technical research. Generally I like to look for stocks breaking up through resistance with good relative strength.  That is when I may buy.   


In another category I look for stocks for potential break out patterns that may already be trading above all or most resistance levels.  An example is a stock that runs up and then consolidates sideways.  At the top of that sidway pattern is a high and if the stock breaks through that it will take out the short sellers and often times will run up. 


I use the software I have to set buy prices for my watch list and it will pop up on my screen when that price has hit.   It takes up a lot of my day so this wouldnt be good for someone who doesnt really enjoy the process.  I keep a log book to list each stock that I look at and stocks are dropped and added several times a week.  I wish my own account was large enough to just trade it for my income because I love doing this.  I also wish my clients could see how much time and effort I put into doing what I do for them!      


Jan 26, 2006 11:30 pm
Aug 29, 2012 7:37 pm

Mallach strategy is a great way to get dialogue going with prospects.