Goldata Financial

 

Investing with the accent on rísk.

 

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INVESTMENT PHILOSOPHY

 

Goldata Financial’s investment philosophy starts with the goals of our Investors on an individual account basis. Should the Investor want to maximize returns with a short-term trading focus, a short-term trading strategy is offered.  For Investors looking for a steady income stream, a diversified, income-oriented porfolio is offered.  Both will be discussed below.

 

Short-term trading portfolio.

 

The investment philosophy for short-term trading comes from the belief that the most important indicator of future price levels of a stock is its perceived increase in future earnings potential. Information to build this list of stocks to trade comes from financial newspapers and magazines, inspections of corporate activities, research materials prepared by others, corporate rating services, annual reports, prospectuses, filings with the Securities and Exchange Commission and company press releases.   This leads to trading in the stocks of companies whose earnings are predicted to increase in the future and ignoring all others.   Stop-loss orders are added so as to minimize losses on any one trade, but allow the winners to run up, adjusting the stop-loss order periodically.  If a position is taken out by a stop-loss order, but it is felt that the perceived future earnings are still increasing, a new position in this stock may be reestablished. The stocks that are traded in this portfolio tend to be mid to large cap stocks that trade on the NYSE, AMEX and NASDAQ as they are the most liquid.

 

Accounts are reviewed throughout the trading day by Goldata Financial’s principal, Elliot Goldberg. A stock in this portfolio will be sold out when a preset “stop-loss” price has been hit or the earnings expectations change significantly during the day to warrant, in his judgement, selling the position and moving on to another position.

 

This mix of volatility and targeted stock picking has tended to lead to minimized losses in down markets and maximum gains in up markets.  It also allows portfolios using this philosophy to tend to be in the sectors of the market that are “moving” and avoid the ones that are not.  For larger portfolios, diversification can be added so as to offer the optimal investment environment  -- above average returns with reduced risk on the downside.

 

As a result of this trading philosophy, there is a great deal of trading activity and capital gains will tend to be short-term.  The type of clients that would be suitable for this type of portfolio would be clients who would view this type of portfolio as a portion of their overall allocation to stocks.

 

 

Income Oriented portfolio

 

The investment philosophy for the income-oriented portfolio is to produce a steady stream of income through a diversified portfolio while attempting to protect principle. Individual securities, preferred securities, bonds, master limited partnerships and other income-generating security make up the majority of the income-oriented portfolio. A minimum of five positions is established to provide diversity to the portfolio. Information to build these portfolios comes from financial newspapers and magazines, inspections of corporate activities, research materials prepared by others, corporate rating services, annual reports, prospectuses, filings with the Securities and Exchange Commission and company press releases.

 

Long-term value portfolio

 

The investment philosophy for the long-term value portfolio is to produce long-term capital gains through a diversified portfolio. Growth stocks make up the majority of the long-term value portfolio. A minimum of five positions is established to provide diversity to the portfolio. Information to build these portfolios comes from financial newspapers and magazines, inspections of corporate activities, research materials prepared by others, corporate rating services, annual reports, prospectuses, filings with the Securities and Exchange Commission and company press releases.

 


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©2010 Goldata Financial

1931 Lafayette Road

Gladwyne, PA 19035

 

Local: (610) 896-9440

Toll-free: (800) 969-9440

Fax: (484) 532-1320

 

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