Friday, March 31, 2006


Stockcoach Reports Strong First Quarter Results

Quarterly earnings increase 329 percent to $98,486

Shareholders’ equity increases 77 percent to $700,729

Stockcoach today announced earnings for the first quarter of 2006. The aggregate value of Stockcoach’s portfolio increased by $98,486 in the first quarter to $700,729, reaching a new all-time high. This represents a 329 percent increase in earnings compared to the first quarter of 2005. Shareholders' equity (I’m the only shareholder! HA!!) increased by 77 percent to $700,729, inclusive of a $25,000 cash deposit made in July 2005. There were no cash deposits or withdrawals in the first quarter of 2006.

“I would like to congratulate myself on yet another successful quarter,” said Mr. Stockcoach, President, CEO, Treasurer, chauffeur, janitor, etc. of Stockcoach, Inc. “My portfolio has outperformed the S&P 500 19 of the last 20 months by an average of 4.4 percent per month.” Mr. Stockcoach continued, “while these results reaffirm my belief in the superiority of small cap value investing, it should be noted that this quarter’s results were favorably impacted by the overall strength of the market, especially among small capitalization stocks. Consequently, I do not expect that the exceptionally strong performance observed in the first quarter of 2006 to be maintained during the remainder of the year”.

Congrats! That's a great return! Keep it up! How about an ipo? :)
Just curious how you maintain the ability to not withdraw profits, in fact you say you even deposit more capital into your account. How do you manage to pay taxes on your realized gains? Or are the bulk of your gains just on paper?

I have very good realized gains, but can only leave a little over half the gains in my account -- the taxes have to come from somewhere.
You should work for a hedge fund with those kind of returns...and yea how do you pay taxes without drawing anything from the account..

in the last 12 months your up over 60% or $282,000, assuming 30% thats $85,000...
I try to avoid selling to the extent possible, but sometimes one just has to pull the trigger and sell. So yeah, taxes are now a major headache. I am just doing my taxes for this year, and it looks like I will have to use all my disposable income from last year to pay them, and trust me, I've set aside a lot of money for that. If I continue to do well, I will start withdrawing money from my portfolio to pay them because I just won't have the extra savings from work to pay taxes on capital gains.
Well, there's the rub. As a matter of risk reduction, you almost HAVE to sell a good fraction of your gainers periodically. Especially when you have a portfolio composed almost entirely of illiquid stocks.

Why? They could all turn south in a hurry if (I should say "when", it's really not a question of "if") the bull market ends. And then you can't get out of them at your price. Risk reduction requires getting out of them gradually, over time, at a price of your choosing, not the market's.
Well, there's the rub. As a matter of risk reduction, you almost have to sell a portion of your gainer's periodically, especially with a portfolio composed almost entirely of illiquid stocks.

Why? Because if the bull market ends (I should say "when", not "if"), your stocks could ALL turn south in a hurry and you may have to then sell at a price of the market's choosing, not yours.

Risk reduction requires selling gradually, especially low-volume stocks. This is especially true in cases where either use of margin is high (I assume doesn't apply to you), or implicit taxes are large.
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Hi Nelson. Thanks for the comment. I haven't posted it because the stock that you mention is on my watch list and I am trying to purchase it (if it ever gets down enough).
Thanks for sharing your results with everyone. You are doing well,keep it up. I also like small caps but only hold about 5 or 6 in my portfolio of about 20 stocks, the rest are all growth stocks with about 10 to 20 mill. shares outstanding. My accout is a bit larger than yours and I also am having a great first qtr up 30%
You might like one of my mini caps OLGR, 2 mils out 640,000 shrs on the float, reported earning after the close on fri. 1.09 vs .09 but as you read they will have a big windfall in the 2nd qtr of at least 3.50 per shr, this one is off the radar, thought it fit you style of stocks. I find your site entertaing, thanks.

PS if you have an interest I could sent you other nice picks from time to time in return for your sharing.
Congratulations! Nice job, and fun to read.
Congratulations! Hope I can buy your mutual fund someday.
I have a great qrt too, up 20%. But I had a bad qrt one year ago, down 25%.
Congrats! Your returns are just phenomenal!
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