(Underlined italicized
text represents the latest additions to this training
guide. Underlined text represents the previous additions
to the training guide)
The Hannaian Intellectual
Property Stock Research & Investment System is
designed for individuals who operate the public
acquisitions of Intellectual Properties as a business
rather than as a traditional investment program. The
emphasis is on the investor/trader taking the ultimate
responsibility for researching, acquiring and marketing
Intellectual Properties himself. The system is designed
to offer a business opportunity to the average man or
woman to establish themselves financially and to allow
them to participate in the economic process which makes
America great. A primary objective is to educate and
empower individuals so that they will recognize and
achieve the means to gain financial success as
independently as possible.
In short, the system is designed to train and support
individuals in operating a highly structured and
supported, self directed and controlled investment
system. Individuals are encuraged and supported in
learning how to invest and manage their own monies, and
to take control of their own financial and investment
future.
The philosophy of H.I.P.S. Investing & Trading is
basically long term investments with trading in
particular situations to maximize profits and to provide
regular income. Hannaian publishing affiliates should
always remember that the H.I.P.S. Investment and Trading
system is not a comprehensive stock investment and
trading service. The H.I.P.S. service was specifically
developed to assist Hannaian publishing affiliates in the
public acquisitions of Intellectual Properties (I.P.s).
As such it is a very narrow and specialized approach to
stock investing and trading, and designed for this
specific purpose. There are many other ways to be
involved with the trading and investment of public
securities, but the H.I.P.S. system occupies its own
little niche, the acquisition of valuable Intellectual
Properties in a self-directed and controlled system. This
point should always be remembered and adhered to.
An important
philosophical tenet of the system is that an investor
should only invest in a business or industry that he or
she thoroughly understands. Understanding and researching
Intellectual properties and their role in industry is
extremely important, as is understanding the principles
of investing and capital markets.
The Ultimate
Business - Buying into Already Successful
Businesses
A major part of the
philosophy of the H.I.P.S. system is the notion that the
ultimate business is the business of buying into other
successful or potentially successful businesses. In
addition the philosophy requires sticking to what you
know and becoming specialized in it. Many successful
investors, Warren Buffet, Charles Schwab etc. have
espoused this philosophy and taken this approach. The
simplest way to accomplish this is through the long term
investment in the publicly traded securities of these
companies. Another way of looking at it is to consider
the alternative of starting your own generic business and
having to put all the time, effort and resources into
making it successful. The statistics of starting your own
successful business are extremely low (See the Hannaian
Training Guide "Private vs. Public Investments"). Buying
into potentially or already successful businesses allows
you to participate in the success of the business. It is
as easy as purchasing your share of their publicly traded
stock. You exercise your greatest legal right in
business, the right to purchase of a piece of an already
successful business when and where you desire, and no one
can stop you but yourself.
The H.I.P.S.I.S.
approach is based on the natural course of events that
occur in business development. Businesses almost always
start small before they grow large and successful. Our
philosophy is to find the Intellectual Property rich
companies in their early or rebuilding stages, buy into
them and benefit from their major move into the ranks of
the successful. The system is then focused on finding
emerging growth companies with rich intellectual property
holdings in their earliest stages of development when
there stock price is as low as possible. The emphasis on
intellectual properties in emerging growth companies
selling at low prices affords the following:
1.......The
potential for explosive and substantial growth with
higher percentage returns than in larger cap, more
established companies.
2.......Access to small price stock allows small
budget investors to effectively leverage, maneuver and
diversify holdings in the public securities markets
without resorting to the additional risks of playing
in the options and derivative markets.
3.......Increased amount of security and insulation
from the risks associated with large cap or market
sensitive stocks where inability to properly
diversify, greater potential for absolute losses, and
margin related losses come into play.
4.......Emphasis on properly researching the quality
of a company's intellectual property holdings
significantly reduces the risks inherently associated
with micro cap, penny stock type emerging
companies.
Buying on
Fundamentals, Selling on Behavior
A basic tenet of the
H.I.P.S. Trading and Investment System is that
acquisitions of I.P.s should always be made by
researching the fundamentals of the purchase, and sales
should be made on analyzing the behavior of the stock. In
traditional investing terms this means that you generally
follow the principles of traditional fundamental analysis
in making your buys, and in determining when and how to
sell you use technical analysis
Selling With Intent
to Buy Back
Because a tremendous
amount of research goes into the decision to purchase on
sound fundamentals, most of the stocks purchased will be
companies with a strong long term growth potential.
Because of this and the basic long term investment
philosophy behind H.I.P.S.I.S. most sales should be made
with the "intent to buy back" the security and maintain
the same or similar position previously held.
Therefore sales of
stock are usually recommended only when the stock can be
sold for a profit and bought back within a reasonable
time thereafter at a reduced price. Sometimes the buy
back may be at a higher price if the sale is made to
preserve profits in an unpredictable situation. The
position may then bought back at a premium where it is
obvious that the stock has a lot more to gain and the
premium buy back will allow significant gains in the
future.
Fundamentals of
Buying
Before a stock issue is
purchased significant research should be done in the
following four areas:
1. Research
into the quality and value of the Intellectual
property
2. Research into the
quality and fundamentals of the company.
3. Research into the
hotness and fundamentals of the sector
4. Research into the
quality of the competition
Fundamentals of
Selling
Selling is done by
analyzing the technical charts, the behavior of the
stock, and the percentage gain in the stock price. The
entire system is based on percentage returns produced by
the leveraged positions. Sales are primarily
accomplishing by closely following and staying familiar
with the behavior of the issue, evaluating the charts,
and observing market trends and the specific news and
circumstances surrounding the issue at the time of sale.
In addition in the H.I.P.S. system because of its long
term investment bias sales are usually made with the
"intent to buy back".
Short Term
Trading
In H.I.P.S.I.S. short
term trading is done primarily in three specific
situations when the predictability of the outcomes are
heightened and the possibility for buy back at a lower
price than the sale is increased. These situations are as
follows
1. Hannaian
Spikes (see Hannaian Training Guides)
2. Hannaian Drops
(see Hannaian Training Guides)
3. Hannaian Rolls
(see Hannaian Training Guides)
Trading with buy backs
during these highly predictable situations allows
increased profits, maintenance of positions and regular
income for H.I.P.S. traders.
Operations as a
Business
Another important
philosophical tenet of the H.I.P.S. Trading and
Investment System is that the program should be operated
as a business with a thoroughly professional business
approach to all facets of the operations. Participants
must understand and accept the risks of being in
business, and those risks in operating and managing the
type of investments involved in H.I.P.S.. Operations of
stock investments as a business also provides a
consistency and averaging effect over time that affords
the professional investor a much greater opportunity for
success than the typical investor who follows the more
traditional approach to stock investing.
Personal Education,
Attention, & Consistent Following
A major aspect of the
philosophy of H.I.P.S.I.S. is consistent personal
education, attention, and close following of publicly
acquired and traded I.P.s.. This is a critical component
and perhaps the single most powerful philosophical tenet
of the system, as it directly correlates to the amount of
success that will be achieved.
The ultimate Hannaian
philosophy of empowerment of the individual entrepreneur
embodies the principle that "If you give a man a fish
he'll eat for a day, but if you teach him to fish he will
never go hungry."
Most
people work so they can invest.....Why not make investing
your work, and work at investing .........Hannaian
You must be "Opportunity Cost & Choice
Conscious"....At any moment in time there is one best way
or opportunity to use your money.... Our job is to find
that opportunity...This is what you should always be
seeking.......Hannaian
Hard
Work
You have to be willing to do the things today
other people won't do
..... in order to have the things tomorrow other
people won't have.
.....Les
Brown
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