The Bottom-Up Analysis Agg model managed by Epic Advisors is the result of financial analysis and market timing. The model is a combination of day trading positions and core positions that are held until the stock reaches intrinsic fair value. The goal for market timed day trades is a return of 1-1.5 percent.
The top holding in the model is Apple Inc (NASDAQ: AAPL). With the iPad and new iPod Touch, Apple had a banner year, raising sales from their $36.5 billion dollar figure in 2009 to $65.2 billion in 2010. The company’s total liabilities increased in 2010, but not so much that stockholder equity took a hit. In fact, stockholder equity increased from $27.8 billion in 2009 to $47.8 billion in 2010. With increasing demand for AAPL’s innovative products and the release of the iPad 2 slated for 2011, AAPL likely has potential for additional growth, though they still have a higher price to earnings ratio than many peers.
Another top holding in the model is DryShips Inc (NASDAQ: DRYS). DRYS owns and operates dry bulk carriers and offshore deep water drilling equipment worldwide. In total, they own enough carriers to carry over 3.4 million deadweight tons. In 2008 the company reported $735.4 million in net revenues. That number dropped to $587.9 million in 2009, and so far during the first three quarters of 2010, they have reported $465.9 million in net revenues for the year. The company’s total liabilities fell from $2.5 billion in 2008 to $2.1 billion in 2009 and shareholder equity climbed from $927.3 million in 2008 to $2 billion in 2009. By the third quarter of 2010 their total liabilities increased to $2.2 billion and outstanding shares had also increased—from 280.3 million in 2009 to 310.3 million in quarter three 2010.
