Neil MacNeale, 2 for 1
A two-page monthly investment newsletter, 2 for 1 provides its subscribers with market-beating results at a time when the stock market itself is going nowhere. From his home in California, 2 for 1’s editor and publisher Neil MacNeale is promoting a model portfolio that gained 21.5% last year and up 364%, or 12.8% annualized since its inception in 1996. MacNeale accomplishes this feat using a unique strategy combining two elements: stocks are picked only from a list of recently announced stock splits and the portfolio is managed with laddering techniques that take all the guesswork out of buy and sell decisions.
Rofin-Sinar Technologies (NASDAQ: RSTI)
Rofin-Sinar Technologies (NASDAQ: RSTI) is a small-cap (1.14B) company based in Michigan. They build lasers used by other manufacturers to weld, cut, and mark various materials. RSTI is a cross between an old-line manufacturer and a high-tech ‘new economy’ company. Rofin has been in business for thirty years and is a world leader in industrial laser technology. Lasers are now useful, even necessary, in numerous manufacturing procedures and their use is far more widespread than the average person realizes. Growth for RSTI has been steady and significant over the last five years. Earnings have increased an average of 52% a year for five years and justify the above average P/E ratio of 26.5. The stock price for this little gem has gone from a split adjusted $3.95 five years ago to its present $38 to $42 range, or about a 1000% increase. Typical of small-cap rockets, this level of growth can’t continue forever, but the fact that Rofin’s Board of Directors declared a 2 for 1 split in November leads one to think the insiders see no slowdown in sight.
RSTI pays no dividend and has volatility over twice the average for listed companies, so the stock wouldn’t be recommended for a conservative portfolio, but this is a strong business and there is the potential for significant outperformance over the next few years.