Date updated:03-19-2008
Although I don't like to equate gambling to investing, money management rules of professional gamblers still apply. Professional gamblers are able to manage the swings by "playing with the houses money" and then gradually taking the houses money off the table as they win, to lock in profit. This stock screen for high beta dividends gives you the chance to do that.
The theory behind these is you will use them in one of two ways but for one goal... Play with the houses money as fast as possible. You buy all sell most, and leave a small amount in. With undervalued stocks this works well, but is very difficult to get the swings in order to play with the houses money. But with high yielding high beta dividend stocks, even if you still don't have all of your money out, as dividends are paid, you will poclet some of your money, and as the stock gets higher, you will continue to "pocket" your profit.
In the long run, this allows you to gradually accumulate a large portfolio of income paying assets, and as you get older, they will become more useful, and if you invested well eventually enable you to just live off the dividend checks.
The process is: Money in, money out, but leaving a small percent of your original position in. Find a new stock and repeat.
The ways you do this is that you either use technical analysis and buy a high beta dividend stock at breakout using a stop buy, and then either a stop limit to control how much profit you take, or just by watching it and selling on your own.
OR
You buy one of these low, and use the volitility to either get it lower and buy more but eventually the volitility will bring it higher and you can sell.
These are not prescreened for value or PEG or anything, they are just stocks over 300M market cap with betas above 1.7, and dividend yields above 5%.
For those wondering, betas are a measure of volitility, and a beta of 2 would represent a stock that is twice as volatile as the market.
These are not for random gambles, you must research these or you are no worse than a blackjack player who doesn't know the odds.
In addition, this method if executed correctly offers a sort of "market darwinism" where the stocks that do well over the years will raise in price and raice their dividend, where the ones that don't will eventually either pay you out dividends until you own a very small percentage of the stock so it doesn't matter, or until the stock crashes or is bought out, but either way, you never really have a large stake in a poor company, unless you buy it in the first place.
FYI: Highest Beta was NCT at 2.5...
Couldn't add a new portfolio for some reason (that I'm aware of) so I had to edit an old one
ABH
BLX
BEE
CIT
CFC
CSE
DLX
FMD
FCH
FRP
HNP
GEL
GKK
GLNG
ING
IIF
KRG
MOD
MBI
NCT
OHI
PCU
Q
SBGI
SCGLY
SHO
SPIL
TMS
UNTD
UTR
TRMD

-
ABH
Abh - $0.00
- N/A
- $N/A
No Analysis added

-
BLX
Banco Latinoamer - $13.93
- -1.21%
- $14.08
No Analysis added

-
BEE
Strategic Hotels - $1.50
- -6.83%
- $1.57
No Analysis added

-
CIT
Cit - $0.00
- N/A
- $N/A
No Analysis added

-
CFC
Cfc - $0.00
- N/A
- $N/A
No Analysis added

-
CSE
Capitalsource Inc - $3.49
- -0.29%
- $3.47
No Analysis added

-
DLX
Deluxe Cp - $14.62
- -1.42%
- $14.83
No Analysis added

-
FMD
First Marblehead - $2.16
- +1.41%
- $2.09
No Analysis added
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