MUSINGS

(7/23/2010) Overall, with the stock market melt down this past month and a half, our stock picks are currently down 3.54%. Three of our selections are up and five are down from where they were selected.

The old saw of the market will fluctuate is holding true. We still remain on the hunt for prospective winners. We may have a couple within the next few weeks. For now we're advocating a holding pattern until there's more decisive clearing ahead. One must remember our selections remain longer term holds.

It looks as if the economy is in a slow turn around. Profits are up this quarter and the pundits are seeing sunshine ahead. Unfortunately many problems still exist - stubborn unemployment, a new round of mortgage resets in the residential real estate market, trouble in commercial real estate, the sovereign debt issues abroad. I also think I detect the some future smell of inflation in the energy and service sectors. I think we're still deep in the woods. I expect a market correction at any time which should be even better for us as it would position our selections at lower prices than where we're at currently. Who doesn't like a sale? That would set us up for larger profits when this economy DOES turn positive - and at some point it will. Hopefully sometime shortly after that point we may be able to better speculate on where the market may be headed longer term. This game requires infinite patience. Presently, I'd suggest staying on the sidelines. When things DO turn around our selected stocks should be poised to do very well. In the meantime, The Small Stock Hunter will continue to hunt for and uncover companies that are fundamentally attractive in the hopes of attaining future profits when the economy and markets eventually point towards a genuine upturn.

We'll continue to update our current selections and look for new opportunities, adding them to the REPORTS page as they're uncovered.

The Stock Reports that should do exceptionally well when that inevitable market upturn begins would be Reports #020708, #031708, #061608, #101408, and #122608

Our selected stocks are followed and brought up to date on a quarterly basis and/or as pertinent news becomes available on the UPDATES page. Weekly price percentage movements (up or down) will also be updated there each weekend.

Stay tuned and keep the faith.

This is just a small note to remind everyone that the stock reports listed for sale on this site are to be considered long term holds. Sometimes the length of these holds can be a year or more. In my experience that's where the big profits are made. In studies regarding stock traders, 94% lose their money. Don't let anyone fool you; trying to time the market or individual stocks is a daunting task and best left to market wizards, of which there are few.

Most investors buy stocks at the top only to watch their profits melt away. One of the most important things to learn in the investment game is to buy when everyone else is selling and sell when everyone else is buying. In other words, using an overused, but relevant cliché, one wants to buy low and sell high. That's the classic example of contrarian investing.

All of the above would depend entirely on a company with positive fundamentals of course. We monitor all companies featured on our website on a quarterly basis and when significant events are reported, this information is then made available to you.

This has been a tough market to say the least and will most likely get meaner in the near future considering the economic clouds ahead. The selections you'll find on the REPORTS page have been chosen on their fundamental merits and as long as these don't change each should do well as we move forward. As you can see on the UPDATES page, a couple of these companies have done exceedingly well; the majority have not. I expect that with improving market/economic conditions, as they start to occur (and they will), the balance of our selections will start to show improvement. Remember, investing for the longer term takes patience. As long as these concerns show continued progress, they'll continue to be followed.

Remember...

Fear in the market place: It’s important to note that with fear, comes opportunity.

Now or in the upcoming months would be an opportune time to be establishing positions in the market for future profits.

Be careful out there.