FINDING UNDERVALUED STOCKS

Have you ever noticed the difference over one year between the low price for a stock and the high price for a stock? What a gap!! In just one year the price for one share of a company's stock can move wildly from high to low and then low to high. DOES THE TRUE VALUE OF A COMPANY'S STOCK FLUCTUATE TO THAT EXTENT? NO!! A company's true value may move up or down but not to the extent that their stock price swings. What's the reason for this? There could be hundreds of reasons but why it occurs is not important. We just need to know when it occurs so we can take advantage of any undervalued stocks and profit from them.

Have you ever bought a stock only to live in fear that the price will go lower because you don't really know a company's real value? Or have you ever bought out of greed hoping that your "hot stock" continues to increase in price but not really knowing if it will? How can one avoid the emotions of fear and greed so prevalent in the stock market?

WHAT IS BENCHMARK INVESTING?

Benchmark Investing's record since 1974 with the companies from the Dow Jones Industrial Average (DJIA) is a strategy of consistently beating the index by buying great companies, TEMPORARILY UNDERVALUED AND UNPOPULAR ON WALL STREET.

But how does a person know when a stock is undervalued in order to make the most of these opportunities? Benchmark Investing removes the elements of emotion (fear and greed) from the equation and allows the investor to logically determine the value of a stock. BENCHMARK INVESTING DETERMINES FIRST AND FOREMOST WHETHER OR NOT A STOCK IS UNDERVALUED. This is a valuable first step in determining whether you want to buy a stock.

Benchmark Investing removes the elements of emotion (fear and greed) from the equation and allows the investor to logically determine valuation levels. Benjamin Graham, in his book The Intelligent Investor., advocated sound investing principles such as the MARGIN OF SAFETY and PRESERVATION OF PRINCIPLE. Graham wanted to see a significant margin between the value of a company and the current price of its stock. This MARGIN OF SAFETY would allow the investor to preserve the original investment principle.

MINIMIZE RISK, MAXIMIZE REWARDS

Benchmark Investing uses these investing principles to exploit undervalued stocks. The more undervalued it is the lower the risk involved in the investment. This is just like buying dollar bills for 50 to 80 cents. ITS A GREAT DEAL!!! Using 7-10 years of historical data, Benchmark Investing sets a target price that gives you a "benchmark" to judge whether or not a particular company is undervalued or overvalued. By using this target you can determine your 'margin of safety'.

When you invest with a margin of safety you have the confidence that you are following rule #1 of investing which is to preserve the principle. BENCHMARK INVESTING PRINCIPLES MINIMIZE RISK WHILE MAXIMIZING REWARDS. The investor also avoids the ups and downs caused by the fear and greed so prevalent throughout the stock market.

AN EXCELLENT COMPLEMENT

How does Benchmark investing fit the investor? Do we think Benchmark Investing is the only way to invest? No!! But Benchmark Investing serves as an excellent complement to a diversified portfolio. BENCHMARK INVESTING FITS THE INVESTOR WHO IS LOOKING FOR LOW RISK WITH HIGHER YEAR OVER YEAR RETURNS THAN THE MARKET AVERAGES.

What companies do we cover? See our "current stats" page for the latest information on companies covered by Benchmark Investing. Then browse through our site and become familiar with Benchmark Investing by looking at the 30 Dow stocks. All of the Dow stocks are offered for free!!

We have two subscription offers.

• S&P 500 Annual Subscription - The best value, consisting of all 30 Dow stocks, all of the S&P 100 and almost 400 other top companies from the S&P 500. A Great Value!
• S&P 500 6 month Subscription - The 6 month version of the S&P 500 Annual Subscription.

Please see our help menu along with our Frequently Asked Questions for answers to some common questions. If your question is not answered adequately to your satisfaction, please send your questions to Benchmark Investing.

Disclaimer

www.benchmarkinvesting.com is a website committed to the education of stock investors. It is an information service only. The information provided by www.benchmarkinvesting.com is not to be construed as a recommendation or offer to buy or sell securities of any kind. The 10 year targets, 5 year targets and future targets are to be considered an information resource to aid the investor in making an informed decision regarding securities trading only and not a recommendation of any stock or option. The information provided by the investing links are to be considered an information resource to aid the investor in making an informed decision regarding securities trading only and not a recommendation of any stock or option. The owners and employees of www.benchmarkinvesting.com may own, buy or sell the securities presented herein. All investors should carry out their own due diligence or consult a qualified professional prior to trading in any security.