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CONTENT OF EMAIL ALERT:
OPINION OF 2005 INVESTMENT HORIZON
STOCK PICK OF THE YEAR FOR DICK DAVIS DIGEST TO BE RELEASED
TOWARDS THE END OF JAN 2005
When one considers that 2004 had to deal with the Presidential Election,
sky high Oil prices, the dollar reaching a 9 year low against the Euro,
terrorism, Iraq and the creeping of interest rates to "higher ground"--
the overall stock market did extremely well with gains across the board!
Please review the portfolio's listed within this message for view of
many of the recommended investments during the past couple of years.
Feel free to review historical E-mail Alerts for stock selections that
date back as far 1996!
Like usual we always excel in rewarding investors with huge gain in
the Micro-cap arena and 2004 was no exception! We also had huge
gains in our Russian Portfolio, had mixed, but attractive rewards in the
technology sector that we usually concentrate on and good returns in
all the rest.
We remain successful year after year ( except 2002) because we do not
vary with investment strategy that has followed us around since 1983 when we
first published S.A.Advisory. We stick with the fundamentals, are not emotional towards
buying stocks when the sky is falling, love the out-of-favor, the turn-around and
of course the micro-caps that every investor HATES- but usually loves the ride
when we find one that increases in value by 5 to 10 times!
We have in the past published less frequently because we don't find it that
necessary to create investment ideas every day--we prefer to buy discounted
value and wait patiently for the seeds of value to grow into money trees that are
harvested over the longer term. We prefer to hold stocks at least 1 year because
of the attractive tax advantage and will continue to focus on reaching this
milestone with respect to investing and securing PROFITS!
Unless something terrible happens during 2005--we anticipate another strong
stock market in the USA. If Oil prices continue to slide-this factor alone will
add enormous upside pressure on stocks. The climate for stock in our opinion
for 2005 looks very promising and presently remain 150% invested ( remains
heavily margined--not for the average investor type). The weaker dollar in our
opinion aids our American companies and actually helps many parts of our
economy compete in the world marketplace. Our Corporations have never
had better balance sheets, efficiently run operations and favorable tax
regulations that also bodes well for better than anticipated profits. An interesting
tax regulation that takes effect during 2005 is aimed at large USA companies
that have amassed huge amounts of money off shore from business subs and
not brought it home because of the high tax rate on that money, but for 2005
all monies brought home will only be taxed 5% if the money is used for plant
and equipment upgrades---this is an extremely bullish development and adds
to the positive tone of 2005 ( billions and billions of $$$$)!
With lower Oil prices, stable interest rates, less corporate borrowing @ low rates,
a greater calmness in Iraq, a very positive business climate with respect to regulations,
still a record short position on stocks by non-believers, huge hoards of money on the
sideline and the seasonal aspect of investing--all leads us to believe that 2005 will
make us lots of spending money by the end of the year! We anticipate a continued
rally in the new year--a slight correction during 1st Q reporting-- a lull during the summer
months and a strong 2nd half of 3rd Q and a strengthening 4th Q.
We still favor micro-caps, out-of-favor Tech, select issues and PFIZER (PFE)!
OUR NEXT SECTION WILL CONTAIN OUR MICRO-CAP STOCK PICK OF THE
YEAR THAT WILL APPEAR WITHIN THE DICK DAVIS DIGEST
SLATED FOR RELEASE DURING THE LATTER PART OF JAN 2005!