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1. Stock Selection:
Our philosophy on stock selection is based on "technical analysis", or more accurately "charting", of
both individual stocks and of the various indices.
 We examine each chart for repetitive
patterns, shape, moving averages, support & resistance points, congestion areas, dynamic spurts, volume analysis, the strength of a stock when compared to the "All Ords", among a number of other
technical phenomena.
We look at long term (monthly), medium term (weekly) and short term (daily) charts before making recommendations on whether to buy, sell or hold.
We like stocks that display a steady up-trend, particularly those that consistently out perform the "All
Ords". In identifying strong stocks we embrace the concept that "the trend is your friend". Conversely, we dislike buying a stock, which has consistently underperformed the market, despite
the allure of buying a "cheap" stock. We would suggest it is usually cheap for a reason, and prefer to buy value.
In essence, if we conform to certain principles regarding stock selection and portfolio management, we are continually putting the odds in your favour - increasing the probabilities of creating a strong
growth portfolio.
2. Portfolio Management:
Our approach to portfolio management is based on providing advice on a number of levels, namely:
- the appropriate exposure to the market based on our analysis of the "All Ords";
- culling of stocks which fail to keep pace with the "All Ords" - generally a stock will be sold if
it's value in relation to the "All Ords" deteriorates by more than 10%;
- taking profits in a lock-step fashion, i.e. taking partial profits after a solid run when the stock
price retraces by a fixed percentage, and exiting the remainder of the holding when moving averages signal the end of the trend.
3. The service you receive:
- monitoring of your portfolio on an ongoing basis;
- advice on stock selection;
- comprehensive portfolio management.
4. The reports you receive:
The provision of:
- Quarterly Portfolio Valuation Report;
- Quarterly Market Commentary;
- Annual Transaction Summary;
- Annual Dividend Report.
5. What does it cost?
:The Stockwatch monitoring Service attracts a single management fee of 1% per annum calculated and charged quarterly on the value of the portfolio.
Purchase and sale of shares attract a minimum fee of $100 or scale brokerage as follows:
- 2% on the 1st $5,000 (per stock)
- 1.5% if over $5,000 (per stock)
- 1% if over $20,000 (per stock)
Please note that the above fees and brokerage are tax deductible.
6. How does it work? SIMPLE!
all orders to buy or sell are approved by the client by phone (or fax, letter or e-mail);
all orders are processed by a stockbroker;
contract notes are sent direct to client for payment (purchases) or direction of proceeds (sales);
quarterly management fees are paid by direct debit from a nominated account.
OUR AIM : the aim of "Stockwatch" is to consistently outperform the "All Ordinaries" index.
To achieve this aim we employ a two fold approach to create a higher probability of success, namely:
- the purchase & management of a core portfolio of growth stocks (exhibiting a strong steady trend as opposed to a sideways or weak trend);
- the purchase of additional stocks, depending on the client's risk profile, with the aim of
extracting a profit from a shorter time horizon, commonly for a period of between a few weeks and a few months.
Stocks are generally restricted to Australian domiciled companies with a market capitalisation greater
than $400m, which essentially means the top 150 stocks.
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