Zacks' Voice of the People highlights opportunities with Winnebago Industries, Ruby Tuesday and PriceSmart

Zacks

For Immediate Release

Chicago, IL – 11/15/2011 – Zacks highlights commentary from People and Picks Trader JohntheWizard.

For more Voice of the People, visit http://at.zacks.com/?id=5851

Featured Post

What is your most reliable Indicator?

Is it your set of entry and exit criteria giving steady gains over prolonged periods of time?

If that time did span 30 years, yes you got a reliable indicator.

Is Zacks #1 ranking reliable in that sense? No. During the past 12 years these stocks compounded 28%/year, equally weighted, 10% of which appeared to be generated by stocks "too small to buy". The remaining 18.6%/year had drawdowns in excess of -50%, hence very risky.

Since the onset of the credit crisis, October 12, 2007, these 190 Zacks Rank #1 stocks compounded -2.1% according to the latest dbcmhist of Research Wizard versus -12.4% for the S&P 500. Over 100 stocks were changed in the S&P 500 since that time. The Zacks #1 Rank had many more stock changes. Maximum drawdowns (risks) of both sets were about the same.

I haven’t discovered any set of entry and exit criteria from Technical or Fundamental analysis that consistently gave steady gains in combination with contained risks over prolonged periods of time. I use fixed watch lists that I described earlier. One of those contained the 85 stocks found by a suggestion of Mo and JaiH, the 12 best of which consistently generated 35%/year with a maximum risk of -27% over the past 32 years with stocks having minimum daily dollar volumes in excess of $2.5 mil. There are ways to significantly improve on that first shot.

However, when you let Research Wizard back test the 160 Zacks Rank #1 stocks with that kind of Money Flow over the past 12 years, you compounded 13%/year with a maximum drawdown of -57%, indeed a highly risky strategy. The 12 best of those 160 stocks compounded 27%/year with a maximum drawdown of -60%, again a risky investment strategy.

I am interested in competing ideas.    

The most recent picks by «JohntheWizard» are:
A buy rating on Winnebago Industries ( WGO),
a buy rating on Ruby Tuesday ( RT) and
a buy rating on PriceSmart ( PSMT).

About the Zacks Community

In 2008, Zacks Investment Research launched PeopleAndPicks.com, a stock-picking website where members of the Zacks community can test their strategies and share ideas with other members. Each user is scored on the accuracy of his or her picks, and top users are rewarded with free products from Zacks. Registration is free. To learn more about People And Picks, visit http://at.zacks.com/?id=5957

About Zacks

Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Len Zacks. As a PhD from MIT Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3:1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros.  In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit From the Pros by going to http://at.zacks.com/?id=5958.

Follow us on Twitter:  http://twitter.com/zacksresearch

Join us on Facebook:  http://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts

Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.

Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.

Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security.

Contact: Brent Billock

People & Picks Manager
Company: Zacks.com
Phone: 312-265-9307
Email: pandp@zacks.com
Visit: www.Zacks.com

Zacks Investment Research



More From Zacks.com

Rates

View Comments (1)