Recent MSW Index Results

...I was recently asked about new additions to the MSW Index (weekly screens) over the past couple of months. In response to the question, I sent this member the results of our stocks from October and November (2005). I told him that our stocks typically take a couple of months before they start to show solid gains. After going through a brief analysis of the stocks added to the screens in October and November, I wasn’t surprised to see an 85% success ratio for the 13 stocks selected. Of the 13 stocks added to the screens during this period of time, only one has been removed to date (PWAV) due to a loss. The stock was removed due to a violation of the Index 10% sell rule. Another stock has been removed (KNOT) but it was showing a 2% gain when it was cut yesterday. I decided to remove the stock before the very small gain turned into a loss. SSAG is the only stock from these two months to currently show a loss at 1%.

Together, the 13 stocks have an average gain of 26%, very impressive if you ask me. Below is a simple table to display the results of the stocks added to the MSW Index in October and November:

*Stocks in red have been removed from the MSW Index

10/1/2005---Then---Now---Gain/Loss
(LMS): $18.32 $27.69 51%
(SSAG): $17.60 $17.38 -1%
(GMXR): $26.27 $35.87 37%
(PWAV) : $12.99 $11.26 -13%

10/15/2005
(ESRX): $61.16 $89.82 47%

10/29/2005
(CRDN): $37.89, $46.62, 23%
(KNOT): $11.37, $11.62, 2%
(CTRN): $27.40, $40.80, 49%
(TWGP): $18.53, $22.21, 20%

11/5/2005
(HANS): $57.63, $85.66, 49%
(NWRE): $20.30, $27.15, 34%

11/12/2005
(NETL): $23.56, $27.15, 15%
(OXPS): $21.81, $27.36, 25%

Be patient with our MSW Index stocks and don’t expect them to gain 25% or more within a few weeks, this is not very typical. Also keep in mind that we don’t day trade, we trade within a time from of three months to twelve months (or more in certain situations). If a stock violates a sell rule, we sell immediately, even if it is only one day after we purchase the stock.

If the start of 2006 is as kind as the fall of 2005, I hope the recent editions to the MSW screen will provide us with similar results in two months.

Piranha