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Company Profile: Historic Overview

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It all started several years ago when a group of business people with a common interest in equity investments started discussing the merits and strategies available for successful investment on the Securities Exchange.

It soon became evident that whilst all these people involved in the discussions were highly experienced in most of the disciplines related to the financial services sector, there still was little agreement as to what was really important in identifying good companies and/or promising stocks.

However, they all agreed on three things:

  1. The movement in the price of a share is simply a product of supply and demand
    The higher the demand for a specific stock the higher the bids will be and, therefore, the share price will move up.
    The higher the supply of a specific stock the lower the share is offered at and, therefore, the share price will drop.
  2. Supply and demand is mostly influenced by the "big players" in the market
    The big investors, such as Pension Funds, Collective Funds, Hedge Funds and other large private equity investors create most of the demand and supply levels on the market.
    With less tradable stocks the serious value focussed retail investors may also have an impact on the supply and demand levels of those lesser known or lesser traded stocks.
  3. If one knew what these "players" will buy or sell one will have a winning formula
    The "trick" to successful trading on the Securities Exchange will relate to one's ability to predict and/or anticipate what the "market influencers" will buy or sell and to be able to do that, one will have to know what aspects they consider and how important they rate the many elements that will influence their decisions.

For several years, an in-depth study and analysis were made of the many events that may have a noticeable impact on the performance of listed stocks.

It was clear that even the experts and most of the better performing fund managers do not look at the same things and they also probably do not evaluate or assess such things in the same manner.

However, we knew that with enough research and analysis over an extended period of time we will discover some common denominators considered by all or most of them and these elements form the backbone of the assessment approach we use.

Thousands of validity tests were done and assessment formats with appropriate weightings were devised. All these findings were built into a model and tested and retested, not only to determine the validity, but also the ongoing reliability of this assessment model over an extended term.

The team will continuously reassess this validity and outcome reliability of this process to stay in line with how the big players view all the different elements involved in stock selection.

With respect to selecting stocks on the Securities Exchange, Warren Buffet once said: "You can't buy what is already popular and expect to do well".

The real art is to buy what will soon become popular.