"NSP Value Plus" Method

We previously discussed just how powerful the NSP 100 Index has historically been--especially when compared to the existing competition out there. Now let's take this even a step further and announce an attractive alternative approach as well.

Remember that the performance of the NSP 100 Index is calculated by simply buying on Monday's open and selling on Monday's open the following week (if the stock is no longer in the top 100). The strong results combined with the mere simplicity in trading rules is largely what makes the NSP 100 Index such an impressive approach. On a complete side note, about 3 out of every 4 stocks are replaced on a weekly basis in the NSP 100 Index on average.

Introducing--NSP Value Plus

Please recall that some pullback in price is a very important ingredient in the entire weekly screening process for a stock to become eligible for the NSP in the first place.

Not to be greedy here, but the NSP Value Plus method is not even necessarily satisfied with that happening however. Just as the name implies, the quest of this methodology is to possibly achieve an even lower "value" buy price than may occur at Monday's open; as once again, is the approach taken by the NSP 100 Index.

Where do "NSP Value Plus" Stocks
and their Buy Prices Originate From?

In short, the NSP Value Plus Method stocks originate from the exact same source as the NSP 100 Index stocks do. Yes, they come right from the list of up to 200 NSP eligible stocks which are presented in the Member's Area each week.

Here is where the main difference comes into play:

1. NSP 100 Index - stocks merely purchased and sold at Monday's opening price.
2. NSP Value Plus Method - stocks purchased at or below a very specific price should it occur on Monday. On the other hand, if prices do not slip to at least that precise level on "Monday" the stock is removed from further consideration for the week. It should be noted that the specific price indicated is also calculated completely mechanically while removing human judgment from the equation. You will come to recognize that the desired price will come in just below a strategic recent trading level.

Please Note: Each week that "specific price" mentioned in number 2 above will be prominently displayed for each of the up to 200 stocks that will be unveiled by the NSP method.

 Numerous Potential Opportunities

For those stocks which do in fact dip to the precise buy levels that the NSP is looking for, numerous potential trading opportunities can rise to the forefront. In fact, as many as about 1 out of 3 of the NSP overall stocks (up to 200) may become eligible for the NSP Value Plus Method in an average given week. It should be duly noted though that those numbers could vary greatly from week to week depending on existing market conditions etc.  

Results Revisited 

As discussed on the home page, the performance results turned in by the NSP Value Plus have truly been spectacular in testing, and also real-time--especially when considering how the markets as a whole have really had their struggles at times during the 2000's. 

Below are results from March 31, 2001 thru December 31, 2009: Please note that we started this analysis back on that specific date simply because that is when some of the historical "fundamental" data that is used was first available to us. The actual system signals began being generated in the middle part of 2009, and the excellent results have continued to roll on as can be seen in the following table.

* (Results achieved from 3/31/01-12/31/01 are annualized across the full year)


Certainly the results posted above could be called rather outstanding to say the least. Everyone knows how difficult the stock investing landscape has been since the turn of the century into the 2000's. Many have seen their retirement accounts shrivel at times. Even though the S&P 500 was actually positive for the year in 6 out of the 9 years it also endured a couple of the largest bear markets in history as well.

Thus, even following a strong 2009, the S&P 500 remains lower by almost -4% overall from where it started way back on 3/31/01. On the other hand, the ultra powerful numbers turned in by the NSP Value Plus can clearly be seen above.

So that is a basic summary of what the NSP Value Plus is all about. However, we have another study providing some more interesting historical performance details. Please click the link to go to the page titled: NSP Major Moves