Combining Value, Momentum, & Risk Management

We constantly analyze over 2000 stocks to find those which can thrive in a variety of market conditions. We then rank each stock based on three potential market conditions.

1. Value. Market capitalization of each company is compared to predicted value based on sales, growth, smoothed profit margins, and a discount rate appropriate based on company characteristics

2. Risk.  We use regression analytics and the most recent major market declines to model potential losses, by stock, during any future potential sell off

3. Momentum.  Similar to Risk modeling, we use recent market gains to identify factors most closely associated with individual stock outperformance… should positive market momentum continue

All three approaches are weighted to produce a final ranking, and yield a robust perspective on overall company attractiveness regardless of market direction. Technical analysis is applied as a final check to potential stocks identified via quantitative methods.
We would be honored to explain our philosophy and approach in more detail

Prudent Risk Taking

At Stellar Assets, we believe in prudent risk-taking on undervalued companies.  We always try to buy low and sell high, which in practice often means taking positions in companies which Wall Street has shunned.  These appear to be fundamentally sound companies, but recent negative price action has forced the Wall Street fashion show in another direction.  We can be patient.  We often acquire more when others abandon ship as perception and related job preservation force the last remaining analysts to reluctantly issue their sell orders.  Please see Our Approach for more details or contact an investment professional.