Weekly Stock Call

October 26, 2010

Dear Readers,

Since Weekly Stock Call’s first stock review published back on June 10th, the S&P 500 is up more than 9%. As illustrated in the chart above, the stocks reviewed and presented to date have generally performed quite well over this short period (on average outperforming the comparative index returns 15.6% to 7.5%). Keep in mind that it would not be unusual for mispriced stocks to take more than a year to correct.

However, as markets move to being more fully priced, it is becoming increasingly difficult to find attractively priced stocks that meet Weekly Stock Call’s investment criteria for balance sheet strength, liquidity, capital efficiency and prominent placement in an industry supported by promising market tailwinds. As it happens, this coincides with increased demands on my time in pursuit of professional and academic interests. These circumstances necessitate some adjustment to our operations.

What to expect going forward:

• More sporadic publication of stock reviews … despite the name of the site, I’d rather avoid publishing any review in a given week than to drop the standards for inclusion.
  
• I’ll be working on refinement of screening algorithms to improve efficiency and effectiveness in identifying high quality discounted companies.
  
• I’m considering the addition of a sample portfolio to highlight the benefits of proper asset allocation in optimizing return-to-risk versus undiversified stock picking or arbitrary portfolio construction.
  

Your interest to date is greatly appreciated and I hope that you will continue to benefit from Weekly Stock Call’s reviews in the future.

Best regards,

David Scollon
Scollon Asset Analytics Ltd.