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Friday, February, 2011

Some Of The Principles Behind The Success Of Steven's Track Record & Forecasting

1. Special Situations - The situations need to be truly special for many reasons.

2. Multiple Variables In Favor Of Price Movement - The more key variables in favor (price per sales, return on equity, price earnings ratios, etc.), the better.

3. Ground Floor - Before the public, savvy investors and institutions get "wise" and take large positions and/or other public exposure. Definitely before promotions by TV, radio, newsletters, large stock and securities sales firms, etc.

4. Pre-Synergy Timing - Getting involved right before the whole is greater than the sum of the parts, like before major mergers, alliances, joint ventures, new technologies or generations of products, etc.

5. Technological Paradigm Shifts - Things that will affect multiple sectors with major new, significant advantages over traditional technology, etc. that fill important needs of many. Things that can substantially save time and money for large market sectors.

6. Historical Price Low (if long positions), Historical High Or Related Trend (if short) - This is especially important in things affected by cycles.

7. Built Up, Yet Unexpressed Momentum - Lots of buying without much price movement, etc. i.e., a time lag prior to large price movement.

8. Prior To Major Anticipated Major Growth Phase Or Rollout Or Related Milestones - Like right before a company phases in a new technology or products that would substantially increase profit margins.

9. Prior To Large Commercial Financing - The big profits are usually made by getting in prior to larger banking and institutional involvement.

10. Prior To Or In Line With Grant Financing - Free money (grants, "forgivable" debt, no interest loans, tax credits, favorable tax treatment, etc.) can be a huge factor

11. When A Price Is Artificially Undervalued Due To "Perfect Storm" And/Or Bashing/False Rumors, Etc. And/Or "Walking Into Equity" - An extreme example would be The Mystery Company in late 2007.

12. Pre-Merger And/Or Pre- Key Milestone Positions - Including prior to trading on a major exchange.

13. Pre- "Key Player" Involvement - Before major, well-known management or partners/alliances are widely announced or known by the general public

14. Pre-Sustainable Financing Positions - Timing - Grab the equity before the company uses banks instead of investors!!!

15. When Cost Of Producing "Bankable" Or "Flippable" Assets Is Substantially Less Than Production Costs - "Walking into equity" is a great position to enjoy.

16. Ability To Benefit From OPM (Other People's Money) - Ability to benefit from leveraging assets, cash flow, etc. either directly or indirectly.

17. Other Proprietary Signals - As discussed in our members and/or owners only e-mails.