The Prudent Speculator

Important Information

Nothing presented herein is, or is intended to constitute, investment advice, nor sales material, and no investment decision should be made based on any information provided herein. Information provided reflects AFAM Capital, Inc.'s (AFAM’s) views as of a particular time. Such views are subject to change at any point and AFAM shall not be obligated to provide notice of any change. Any securities information regarding holdings, allocations and other characteristics are presented to illustrate examples of the types of investments or allocations that that AFAM may have bought or pursued as of a particular date. It may not be representative of any current or future investments or allocations and nothing should be construed as a recommendation to purchase or sell a particular security or follow any investment strategy or allocation. Any forward looking statements or forecasts are based on assumptions and actual results are expected to vary from any such statements or forecasts. No reliance should be placed on any such statements or forecasts when making any investment decision. While AFAM has used reasonable efforts to obtain information from reliable sources, we make no representations or warranties as to the accuracy, reliability or completeness of third party information presented herein. No guarantee of investment performance is being provided and no inference to the contrary should be made. There is a risk of loss from an investment in securities. Past performance is not a guarantee of future performance.

Index Disclosures

Dow Jones Industrial Average (DJIA or “Dow”) - The Dow Jones Industrial Average (DJIA) is a price-weighted average of 30 actively traded “blue chip” stocks, primarily industrials, but includes financials and other service-oriented companies. The components, which change from time to time, represent between 15% and 20% of the market value of NYSE stocks. Return figures are total return (i.e. include the impact of dividends and their reinvestment.)

Russell 3000 - The Russell 3000 Growth Index measures the performance of the broad growth segment of the U.S. equity universe and includes those Russell 3000 companies with higher price-to-book ratios and higher forecasted growth values. Return figures are total return (i.e. include the impact of dividends and their reinvestment.)

S&P 500 - The Standard & Poor’s 500 Stock Index (S&P 500) is an unmanaged index of 500 stocks that is generally representative of the performance of larger companies in the U.S. Return figures are total return (i.e. include the impact of dividends and their reinvestment.)

Risk Disclosures

*Buy List Excerpt – 40 stocks – A subset of all of the stocks AFAM deems to be suitable of purchase at time of publication.

*Portfolio Builder - 10 stocks selected from the 40 stock subset for additional discussion. Generally based around a special theme which has often been pending inclusion in one of our newsletter portfolios.

Investment Terms

P/E - A valuation ratio of a company's current share price compared to its per-share earnings.

Price-to-Book Value - A ratio used to compare a stock's market value to its book value. It is calculated by dividing the current closing price of the stock by the latest quarter's book value per share.

Price-to-Sales – A valuation ratio of a company's current share price compared to its sales.

Risk Reward - The principle that potential return rises with an increase in risk. Low levels of uncertainty (low risk) are associated with low potential returns, whereas high levels of uncertainty (high risk) are associated with high potential returns.

Portfolio Disclosures

TPS Portfolio is the Al Frank Credit Trust's actual investment portfolio.

Buckingham Portfolio is John Buckingham’s actual investment portfolio. Though not presently leveraged, it has been so in the past. It is not based on actual client returns.

Millennium Portfolio is unleveraged and hypothetical. It is not based on actual client returns.

PruFolio is unleveraged and hypothetical. It is not based on actual client returns.

All portfolio returns are calculated on a total return basis and reflect the reinvestment of dividends, if any, margin leverage and margin interest charges, trading costs and subscription costs. There are inherent limitations with in hypothetical or model portfolio results as the securities are not actually purchased or sold. They may not reflect the impact, if any, of material market conditions which could have has an impact on AFAM’s decision making if the hypothetical portfolios were real. Hypothetical performance is shown for illustrative purposes only and should not be interpreted as an indication of performance of any AFAM portfolio. The use of leverage magnifies gains and losses and increases risk to a portfolio.

AFAM

AFAM Capital, Inc. (AFAM) is an Investment Adviser, registered with the SEC, is notice filed in the State of CA and various other states, and serves as editor to The Prudent Speculator and the weekly e-mail updates; (TPS: ISSN 0743-0809). AFAM is sub-adviser to certain proprietary mutual funds and serves as manager to separate managed accounts. Many of the securities contained within this newsletter mentioned are analyzed, recommended and transacted in by AFAM and/or its associated persons for client and personal accounts. It is also possible that AFAM and/or its associated persons may take a position in a security that is inconsistent with the recommendations provided in TPS or may purchase securities not mentioned in TPS without notice to its subscribers. All AFAM employees are subject to a Code of Ethics, which prohibits, among other things, insider trading.

Past-Specific Recommendations

Investment recommendations provided herein are subject to change at any time. Those recommendations provided herein are provided for informational purposes only and are not provided as a recommendation to buy or sell any one security. Past and current recommendations that are profitable are not indicative of future results, which may in fact result in a loss. See http://www.theprudentspeculator.com/aprs for a list of all past specific investment recommendations.

Performance and characteristics of AFAM portfolios and securities are subject to risks and uncertainties. The stocks selected for listing and discussion in the newsletter were based on proprietary analytical work performed by AFAM, and not based on performance, meaning that they are chosen irrespective of profits or losses. The securities presented do not represent all of the securities bought, sold or recommended. For a complete list of all securities recommended for the last 12-months, please contact AFAM at This email address is being protected from spambots. You need JavaScript enabled to view it. .

Privacy

TPS periodically rents its mailing list to unaffiliated third-parties. Telephone marketing is prohibited. Subscribers who wish to have their name removed the mailing list should contact TPS by e-mailing This email address is being protected from spambots. You need JavaScript enabled to view it. .

Subscriptions

TPS is published monthly, with weekly e-mail updates at the following rates:

1-year: $295; 2-years: $495. For overseas airmail, add $24/yr. Subscriptions are not assignable. For subscribing, please contact us at This email address is being protected from spambots. You need JavaScript enabled to view it. or call 877.817.4394.

Sample Newsletter

Download a recent sample of the #1 ranked, not adjusted for risk, investment newsletter for the past 15, 20, 25, and 30 years according to The Hulbert Financial Digest (as of 10.31.14). You will also receive access to all of our previously recommended stocks and their performance.

A newsletter’s Hulbert Financial Digest’s Ranking is based on an average of its several portfolios in the event it recommends more than one (and includes portfolios that the letters have discontinued). Rating is not indicative of future performance and may not be representative of any one client’s experience.

 

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