Pendultus Playbook

Your Pendultus Premium Stock Newsletter Guide and FAQ

Welcome,

Congratulations on becoming a valued member of our family with the Pendultus Premium Stock Newsletter. Pendultus Premium is a value with growth stock orientated newsletter. Our mission is to provide you with stock ideas that beat the total returns fo the Wilshire 5000 and S&P 500 over time without taking on excessive market risk.

Consider this stock newsletter akin to your very own personal stock tip sheet. Each month you’ll receive a list of highlighted stocks that we expect to outperform the market over the ensuing 12 to 36 months, if not significantly longer. Each stock featured in the newsletter has passed a proprietary valuation algorithm along with an extensive manual checklist. On average, you can expect 15-20 stocks listed in each issue. The number will vary month to month depending on market valuations, something we have no control over.

Each stock in Pendultus Premium will include a high-level investment thesis and important news updates. While you will find some well-known names, our most significant edge tends to come from the small and mid-cap stocks we feature. Smaller companies have less institutional coverage, have better long-term growth prospects than mature large-cap stocks and
most retail investors aren’t familiar with them.

Important Reminder: Please add members@valueinvesta.com to your safe list for your email provider. If you’re unsure how to do this, do a quick search on the web for your preferred email provider and you’ll find many great short tutorials.

FAQ-Frequently Asked Questions

When is each issue delivered to the member’s area?

Each issue arrives in your membership the last Monday of the month. You’ll receive an email notification from members@valueinvesta.com when the newest issue becomes available.

How are the returns calculated?

We average the list of active stock returns in aggregate each month. Each stock carries equal weight. For example, if there are 20 active stocks, each stock would have a 5% weighting.

Year    Pendultus Premium   S&P 500      Wilshire 5000
2017         25.2%            18.74%        18.65%
2018         -2.5%            -4.75%        -7.36%
2019         36.4%            33.07%        31.02%

Remember, the most important number to focus on is your annualized return in relation to the risk you are taking.

Can I expect to achieve the same returns that you advertise?

Returns will depend on what time of day you place your buy and sell orders, the bid/ask price and commissions. Everyone’s returns will be slightly different based on their timing, risk tolerance and investing styles. Past performance is not an indication of future performance. It may be better; it may be worse.

Keep in mind that our value-orientated investing style will lag the stock market averages over periods of time. This is inevitable for investors following a specific investing style.

If you look at Warren Buffett’s track record, you’ll find that he underperformed the broad stock index about once every three years. He’s had four years where he underperformed the market by 10% or more for an entire year. As such, it’s important that you pick a newsletter with an investing style that fits your personality.

How do you suggest new readers start?

New subscribers should start by building an equal weight position in each highlighted stock. For example, if there are 20 stocks, each stock would represent 5% of the portfolio.

We take the simple approach of investing an equal percentage in each stock because we don’t know which will be our biggest winners and which will lag the markets. If it were that easy, everyone would eliminate their losers. Some of our biggest winners started with negative returns of over 15% before turning to the upside. We try our best to avoid the downturns, but it does occasionally happen.

In the end, it’s up to your comfort level and the advice of your financial advisor. It’s essential to remember that even the most successful investors of all time have losing stocks. Therefore, it’s critical never to put too much money into any one stock.

When do you recommend that I buy or sell a stock?

While we provide guidance, It is up to the individual and their accredited financial advisor to decide when to buy or sell a stock. There are simply too many factors involved in financial planning to make blanket recommendations for each investor.

Our job is to focus on highlighting stocks that have a high probability, based upon our valuation models and checklists, of outperforming the market going forward. It’s worked brilliantly so far and is the reason subscribers stay with us for the long-term.

What if I want to invest in more stocks than what’s included in your newsletter?

An excellent approach that many members take is to invest a percentage of their monies in individual stocks and the rest in index funds or a target retirement date fund.

Another useful idea is to combine our stock newsletter with another highly rated stock newsletter. This approach spreads your risk and lets you take advantage of any market condition.

Are you a certified financial planner or investment advisor?

Some financial publication companies use low-cost newsletters as an advertising vehicle for their financial planning business or as a loss leader for higher-priced investment newsletters. We do not offer financial planning or high-end investing newsletters to the public. Therefore, we must keep our newsletter price high enough to cover expenses and make a little profit. The good news is that it means we’re not holding anything back; you get our best ideas! (at an incredible bargain considering our performance surpasses that of newsletters costing $995 or more annually)

The Pendultus Premium Stock Newsletter is for informational and learning purposes only. We simply provide a list of stocks that we believe have the potential to outperform the market averages. It’s worked well so far. You should always consult with a certified financial advisor before deciding to buy or sell stocks contained in our newsletters.

Why don’t you send inter-issue commentaries?

We invest in a stock, expecting to hold it for 12 months or longer to take advantage of longer-term price moves and lesson capital gains. Therefore, there’s no reason to take any action unless there’s a significant material change in the company that impacts our long-term view of the stock. In those situations, we’ll send an email alert with any immediate changes.

Over the years, we’ve come to appreciate this more relaxed approach to investing and not coincidentally; it’s helped our results. Take the time to enjoy life; spend it with family and friends. Focus on long-term performance. Don’t sweat the daily fluctuations or get caught up in the noise. That’s what trading firms and news sites want you to do to make money for them.

Who is the Editor for Pendultus Premium?

Bob Howe is the editor of Pendultus Premium. Bob worked as a financial advisor for a prominent investment firm but didn’t enjoy the heavy sales pressure. He has over 20 years of experience in the markets and an MBA with classes in finance and investment theory. At the encouragement of friends, Bob started this newsletter to help individual investors find stock ideas with the potential to beat the market and help them achieve their dreams.

How come you don’t go into more detail on your monthly company updates?

There are three specific areas to cover in order to properly answer this question.

Earnings Updates: CFO’s have many tools at their disposal to massage earnings from quarter to quarter. Therefore, we don’t get too excited or go in-depth with quarterly earnings reports unless there’s something extraordinarily positive or negative going forward over the long-term. Warren Buffett puts it best: “The amount of investment gains [or] losses in any given quarter is usually meaningless and delivers figures for net earnings per share that can be extremely misleading to investors who have little or no knowledge of accounting rules.”

Company Updates: We found that our readers were paying less and less attention to comprehensive stock updates over time. With news updates so readily available on the internet, much of the information we provided was stagnant or became redundant. After all these years, we don’t like writing for the sake of writing or being busy for the sake of being busy.

Macro News: In a similar vein, we don’t regurgitate news that’s readily available elsewhere in real-time for the sake of providing information. We don’t have the staff to compete with the Wall Street Journal, Barron’s, Market Watch and others, nor do we want to. We can’t be everything to everybody without substantially raising our costs and subsequently, subscription prices.

Our member’s highest priority and the reason they subscribe year over year is to get stock ideas not on their radar that achieve market-beating returns. That’s how we’re judged. We do the painstaking research and evaluation for you and let the results speak for themselves.

Who do I contact for further questions or suggestions on how to improve the newsletter?

If you have further questions or recommendations, please send them to members@valueinvesta.com

*We no longer hire a call center for customer service to help keep overhead costs and subscription prices low. We’ve found that from a customer viewpoint, it’s just as easy and often less frustrating to handle all requests and answer questions via email. Please allow us 24 hours to respond.