2004 AFUND microcap 5

April 23: Given our view that a stock market correction is coming within 30 days of May 17, 2004, we are reducing our allocation of microcaps. However, we will continue to buy and trade and invest in special situations. WSNW subscribers should please visit our premium post INVESTING WATCH for suggestions as to possible future buy and sell recommendations.
We plan to post our 2005 AFUND microcap portfolio in November for the annual January microcap silly season plus.
Annual AFUND Microcap 5 2004 picks are special-situation opportunities, even if with high risk, offer returns that can be high, even in a down market. Our annual selections are sector diversified among Biotech, Construction, Entertainment, Gold, Home Securty, Successor Energy and Technology.

The AFUND microcap5 trading philosophy is to look for a minimum of 25%-100% within 3 months. Thereafter, we sell or use trailing stop losses. Note: If investing in the AFUND microcap5 as intermediate term investments, if there is a 20% loss, we either double up or exit depending on news, market conditions and astrological factors at the time. 

Trading, as opposed to investing in microcaps, is a risk akin to trading the futures and currency markets. Recall Will Rogers: “I’M NOT CONCENRED ABOUT THE RETURN ON MY MONEY, AS THE RETURN OF MY MONEY.” Don’t ignore the maxim wise race goers and others gamblers try to follow: Never bet more than you can afford to lose. In the micro-cap world, stock screens, newsletter writers and word of mouth are prime sources.  Of course, newsletter writers, including yours truly, may or may not be wholly disinterested parties.  However, some are as objective and more reliable than senior brokerage analysts, while others obviously are not. Traders track HOT trends for the source of the best microcap buys. Long term investors look to strong fundamentals, management, financial strength and/or having a better mousetrap invention for their best microcap buys. If you are not experienced with small cap investing and trading, you might wish to read our Microcap2004 trading and investing primer to help decide whether buying the AFUND 5 2004 portfolio is appropriate in your portfolio.


When trading the AFUND microcap5 picks, we recommend selling at trading target.
When investing the AFUND microcap5 picks, we recommend selling at our investing target.

Targets in Red have been reached.
Information below last updated 4/23/2004:  
CMMD reached  50% trading profit with 9 days!
GNCI reached 100% trading profit in under 3 months.
  
Company
Ticker
 Price
12/31
 Buy
Price
Now
Trade
Target
 Sold
 P/L
Invest
 Target
 		Sold
 P/L
CYTRX CYTR 1.86
 <1.90
SOLD
 		2.50
 		2.02
 10%
 		SOLD
 		3.25
 		1.86
 0
Digital Video System DVID
 2.60
 <2.20
SOLD
 3.00 2.20
 0 %
 SOLD
  3.50
 1.98
 -10%
Gallery Resources
 GYR-T*
 .075C$
 <.08C$
 .06C$
 HOLD
 .15C$

HOLD
 -

Command Security
 CMMD
 1.01
 <1
 1.31
 SOLD
 1.35
 1.52
 50%
 HOLD
 2.00
.
International Hi-Tech
 IHITF*
 .24
 <.26
 .17
 BUY
 .48

BUY
 1, 1.3,  2

Virginia Gold Mines
 VIA-T
 1.44C$
 ~1.25C$
 1.26C$
 -
 1.75C$
 -
HOLD
 2.25C$

Gencor Industries
 GNCI
 3
 ~3
 6
 SOLD
 3.75
 6
 100%
 SOLD
 5, 6, 9
 6.10
 100%

WSNW Email Sunday 12/21/2003:
Our January Afund microcap 5 portfolio follows:
Note 1: If you prefer not to buy more AFUND Client stocks, we have provided two same sector alternatives.
Note 2: We may enter some of these stocks late Monday, and more next Monday and Wednesday before the New Year, depending on overall market action and the price of the each stock. However, we may buy gold stocks later, circa January 8, should gold prices retreat short term..
Note 3: This is our aggressive annual January Effect speculation. If you don’t fully understand the rules of play or the risks involved, don’t buy.
Note 4: It is usually best to place limit orders, rather than market orders in these thinly traded stocks.  However, I would not be overly concerned about .01 or .02- either they move or they don’t.
Please read our Microcap2004 primer post for more.
Biotech:                   CYTRX Corporation      CYTR   Buy <1.90       P1   2.50    P2  3.25
Entertainment:        Digital Video Systems   DVID    Buy <2.20      P1   3.00                      
Gold:                       Gallery Resources*       GYR-T   Buy <.08C$   P1   0.15
Home Security:       Command Security        CMMD Buy  <1          P1  1.35    P2  2.00      
Construction:         International Hi Tech*   IHITF   Buy  <.26       P1 0.38     P2  .55        
ALTERNATIVE SELECTIONS:
Gold:  Virginia Gold Mines: VIA-T
Construction:  Gencor Industries: GNCI

Disclaimer: Always check with your licensed financial advisor or broker before buying or selling on the recommendations of the Astrologers Fund, Inc.  
* IHITF is an AFUND client and GYR-V are AFUND clients- read our website disclaimer for more information.
 

microcap 2004 primer
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