Founded in 1981 by Bill Mathews, The Cheap Investor newsletter is all about discovering quality stocks trading for less than $5 per share.
Each month, we work hard to find a few great companies that have the potential of producing gains of 50%, 100% or more over a 12 to 18 month period.
These picks are highlighted in our monthly subscription newsletter, along with updates on past recommendations and commentary on the economy and markets in general.
We believe the best way to make money is to invest in companies with good sales and earnings when the prices are near their lows – it’s what we call “CHEAP” Stocks!
When the stock price rises to the high point of its cycle, smart investors sell for a tidy profit.
Our subscribers pay us to deliver consistent and profitable results. They don’t want quick trades, meaningless reports with screaming headlines or a barrage of useless emails.
Rather, they want and expect to receive actionable insights month after month, year after year, which we have been doing for over 30 years now.
Last year alone, 18 of our recommendations gained 50% or more, including 13 stocks that soared well over 100%.
In 2012, 21 of our recommendations gained 50% or more, including 6 stocks that soared well over 100%.
In 2011, we picked 23 companies that vaulted over 50%, with Arena Pharma climbing an eye popping 878%, while Global Cash Access shot up 198%.
The year before, our subscribers received 62 winning stocks back-to-back. That’s an average of 5 winning picks per month in 2010. No losing stocks for the entire year.
For the 5 years ending December 2013 (our last accounting), we have recommended 276 winning stocks out of 277 chosen, with average gains of 183%.
We’re not investment advisors or brokers, so we can’t tell you when to take profits or when to cut your losses, which we have from time to time, such as Atrinsic in 2008 or PDG Environmental in 2009. However, we can tell you to never invest more than you can afford to lose.
Using proprietary strategies honed over three decades, The Cheap Investor has delivered a long and well-documented record of fortune-making stock picks, such as CarMax at $1.56 which went to $39.00.
Then there was Vanda Pharma at $0.75, which went to $16.55, or more recently Groupon at $2.90, which almost immediately gained 79% after our recommendation in late 2012.
While we specialize in low priced stocks, we also discover higher priced companies that meet The Cheap Investor’s stringent criteria, such as Bristol-Myers, AT&T or Tyson Foods, which gained 44%, 56% and 205%, respectively, after our recommendations.
Bill Mathews, our editor, received his Master of Science Degree in Business from Northern Illinois University. For more than 15 years, he taught business and investment courses at Triton College, as well as securities analysis for the MBA program at Keller Graduate School of Management.
His knack for consistently choosing quality stocks before Wall Street discovers them has earned Bill Mathews praise and accolades from the tens of thousands of investors.
In 2004, Bill distilled his many years of knowledge, hard earned experience and stock picking prowess into a highly acclaimed 148 page tome entitled “Making Big Money in Small Stocks.”
The book is filled with Bill’s practical, money making wisdom, solid techniques and numerous tips and ideas that will enrich your understanding of stocks and how they relate the market, revealing opportunities for profitable investments for those willing not to follow the crowd.
Recognized as one of the foremost authorities on investing in small stocks, Bill Mathews has been a frequent guest on radio and television shows nationwide such as CNBC and interviewed by many major newspapers and magazines, including the Wall Street Journal, Business Week, Barron’s and the Chicago Tribune.