Friday, December 29, 2006


Stockcoach Reports Record Full Year Results

* Full year profits of $232,076, up 13.9 percent

* Fourth quarter profits of $78,183, up 109 percent

* Outperforms benchmark Russell 2000 by 21.5 percent for the year and 1.6 percent for the fourth quarter

* Announces $50,000 special cash dividend

Stockcoach today announced profits of $232,076 for 2006 compared to profits of $203,666 for 2005, an increase of 13.9 percent. For the fourth quarter ending December 31, 2006, profits were $78,183, an increase of 109 percent compared to the fourth quarter of 2005. Profits are calculated as the overall change in portfolio value, inclusive of realized and unrealized capital gains and losses, dividend receipts, commissions and fees, net interest payments, but exclusive of any cash withdrawals or deposits or accrued tax liabilities.

For the year, Stockcoach outperformed the S&P 500 by 24.9 percent, the Nasdaq composite by 29.0 percent, and the Russell 2000 by 21.5 percent. For the fourth quarter, Stockcoach outperformed the S&P 500 by 4.0 percent, the Nasdaq composite by 3.2 percent, and the Russell 2000 by 1.6 percent. Stockcoach's equity was $834,311 at the end of 2006, an increase of 38.5 percent over the preceding year.

To reward himself for his hard work, Stockcoach has declared a special $50,000 cash dividend payable to himself on January 1, 2007. Based on his conservative calculations, this money should be sufficient to fund one month's worth of expenditures at Babies R Us. Stockcoach also plans to announce another special dividend in March to help cover this year's tax liabilities.

"I would like to congratulate myself on another solid year," said Mr. Stockcoach, President, janitor, and spiritual leader of Stockcoach, Inc. "The completion of this quarter marks the tenth consecutive quarter that I have outperformed the S&P 500, the Nasdaq, and the benchmark Russell 2000 index."

Mr. Stockcoach continued, "I am excited about the prospects for 2007. While the outlook for the stock market in general, and smallcap value stocks in particular, is less favorable than it has been the past, I am hopeful that I will be able to continue my record of outperformance. As previously discussed, I intend to complement by value based investment approach with higher frequency trading, which I believe could further boost my returns."

Clearly, when you say "profits", you mean gross profits, not net profits. Net profit is all that matters, and net profit needs to recognize what it took to pay your taxes on any gains you took this year on stocks.
Well "clearly" both matter since you can't have net profits without first having gross profits. Everyone's tax rates are different, which is why a hedge fund or mutual fund will show gross returns since there is no way to show what each individual investor would have earned on an after tax basis.
I say net profit is all that matters because, if you don't withdraw money to pay your taxes on any stock trade gains, then in reality you are implicitly investing more outside capital (the outside funds that would have to be used to pay the taxes instead of withdrawn funds). The point is, when you tally your percent gains over the years, it should reflect true or net gain, not gross gain as would be the case if outside funds were used to pay taxes. On another point, I complement you on doing as well as you have, especially with such a large group of mostly illiquid stocks.
Thank you for the compliment. I agree that taxes matter, which is why I often hold stocks for more than 1 year and in some cases, have been holding a stock for many years. This has helped reduce my tax liabilities over the years. But this is less of a personal finance blog and more of a trading/investing blog, so I have always focused on pre-tax profits and losses, which is what most other bloggers report when discussing their results.
Great year. Good luck. Bonne Annee!

Unfortunately, I think you missed the whisper number.
Hey laggard, just noticed that according to your 'Reader Poll', you're not even in the top quintile of the class. Twenty-two percent of your readers had investment portfolio returns greater than fourty percent this year. Your advice actually hurt their performance. And those guys are probably giving their after-tax performance; I'm sure that 'anonymous guy' did.

OK, so next year you got to get down and dirty. No more of this lazy-boned malingering. We're shooting for top ten percent. Otherwise you're not worth what we're paying you.

But first have a great holiday weekend.
Great results! Good luck in 07!
Babies R Us huh? Have I missed a post? What gives?

Thanks guys for all the nice words! Yes, there is a little Stockcoachess in the household (she's 17 months old!).
You are rich and should probably retire and run money full time. Congrats and happy new year.
is your list of LONGS up-to-date?
All the stocks that I list are up to date (I own all of them) but there are some stocks that I own that I do not list because I only have partial fills that I am trying to complete.
Great Job as always Peter! I wish you continued success and more $50,000 dividends in 2007 :-)

Post a Comment

<< Home

This page is powered by Blogger. Isn't yours?