Top 5 Portfolio

The TopStock TOP 5 Portfolio is a concentrated growth portfolio service for active stock investors. The portfolio is run by 20-year market pro and full-time money manager, Mr. David Moenning. The service was developed as part of a strategy for Mr. Moenning’s active clients (Dave owns a Chicago-based investment management firm) and has proved quite successful.

In short, the TopStock TOP 5 Portfolio takes the concept of “own the best and ignore the rest” to another level. The portfolio owns just one “TopStock” (“Top Stocks” are the top rated stocks in terms of earnings strength and company performance) in each of the top five performing sectors and holds them until either (1) the stock breaks down into a downtrend or (2) a higher ranked stock becomes available. And since the portfolio is updated every Monday morning, it is one our easiest portfolios to follow — it only takes about 15 minutes a week!

This concentrated portfolio approach is designed to do one thing and one thing only: Provide superior performance. We are not looking for clasically diversified approach or a closet index portfolio. No, this is a “bang for your buck” type of portfolio where we literally own the best and ignore the rest. And with just one stock pick in just five sectors, you can rest assured that the portfolio represents only our very best ideas.

The Starting Point: The TopStock Selection System

At the core of all portfolio services is the TopStock selection system. Each week the computers crunch the numbers and rank every stock in our universe in terms of earnings strength and company performance. Our goal is simple: We want to identify those companies that are truly tops in their category.

It is important to note that we do not employ the typical “earnings momentum” type of formula that became so popular in the early 1990’s. Our proprietary TopStock system is extremely robust and cannot be found in any newspaper or public website. The TopStock system for determining a company’s earnings strength and performance incorporates hundreds of indicators, including the analysis of:

  • Earnings Estimates
  • Revisions to Earnings Estimates
  • Momentum of Earnings Revisions
  • Measures for Earnings Surprises
  • Upside Potential for Earnings Estimates
  • Company Momentum
  • Industry Performance

From there, our research team painstakingly analyzes each of the top rated stocks on an individual basis. We review the charts from a technical perspective. We review Wall Street’s current research and brokerage ratings (we have access to most of the Street’s important research), and we check our long-term fundamental models. While it takes an enormous amount of time and energy, the goal is to identify the top stocks in the sector.

Next, we compare our existing holdings to each of the week’s TopStock “contenders.” If one of the new kids appears to offer more upside or has a substantially higher rating, we don’t hesitate to make a change.

Risk Management Strategies Are Built In!

With one of the worst Bear Markets in history still fresh in investors’ minds, perhaps the best advice we can provide is this: Stop Feeding the Bears!

As the saying goes, “sometimes the best offense is a good defense.” So, in addition to a powerful stock selection strategy designed to outperform by a wide margin in Bull markets, the TOP 5 also has a risk management strategy built into the portfolio for when the Bears begin to growl.

Our disciplined sell strategy is actually pretty darned simple. You see, we have no tolerance whatsoever for stocks that are not technically healthy from a chart standpoint. Thus, whenever one of our holdings moves into a downtrend or breaks important support — we sell the stock, no questions asked.

While it may sound simplistic, this “bottom up” or stock-by-stock approach to managing risk causes us to automatically reduce exposure to market risk during bear markets. And since one of the best ways to make money in the long run is to avoid losing big money in the short run, this approach is an easy way to protect your net worth during bear market periods.

This ever-so simple strategy helped us survive the Credit Crisis Crash of 2008 in fine fashion. For example, on September 29, 2008, the TopStock TOP 5 Portfolio was already in a defensive mode and had moved to a 70% cash position. And by October 6th, with the market falling apart at the seams, we had 80% of our portfolio on the sidelines! So, although the S&P 500 plunged -31.7% from August 1, 2008 through October 24, 2008, our defensive strategy helped the TopStock TOP 5 Portfolio outperform the market by +25.5% in just 60 days.

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You Get Performance:

Performance is definitely the name of the game in this business! So, Dave decided to take his proprietary TopStock Strategy (which showed gains +449.16% versus the S&P’s return of +102.73% over the ten-year period from 1996 – 2005) and turbo charge it to come up with the TopStock TOP 5 Portfolio.

Since being introduced to on January 1, 2006, the TOP 5 has produced the following results:

TopStock TOP 5 Portfolio
Performance Scorecard


S&P 500
2006 +46.27% +13.62%
2007 +42.64% +3.53%
2008 -12.68% -38.49%
2009 +11.38% +23.45%
2010 +8.89% +12.78%

Cumulative Return
(From Inception: 1-1-06)
+120.96% +0.74%

Top 5 Outperformance
versus S&P 500

That’s not a typo. The TopStock TOP 5 Portfolio has outperformed the S&P 500 Index by more than 100%!

We Make Simple Trades:

It’s important to understand that a portfolio doesn’t have to be complicated to be a winner. There’s nothing fancy here… no options… no day trading… no complex transactions. We simply focus on the top rated stocks in the top sectors. And to make things easy, we tell you EXACTLY what and when we buy and EXACTLY when we sell. So, in only takes about 15 minutes a week to keep you up to date with the portfolio.

It’s a “Live” Portfolio

The TopStock TOP 5 Portfolio is a REAL portfolio with REAL money in it (we invest our own money in the portfolio) that is run “live” in REAL-TIME for all to see.

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What You Receive:

Before anyone becomes a paying member of our service, we feel it is important for them to understand exactly what they will be getting from us. So here’s a summary of the reports you will begin receiving once you’ve signed up:

Real-Time Trade Alerts – We send a real-time ALERT! via email BEFORE every trade we make. These live reports tell members EXACTLY what we are about to do and why we are doing it. And to avoid any conflicts, it is our policy to wait until after we have received the ALERT to actually enter our trades. Each ALERT! includes:

      • Company Name
      • Ticker Symbol
      • TopStock Rating
      • Position Size
      • The Reasoning Behind the Trade – We believe it is vital to understand the reason WHY a trade is being made

Weekly Round-Up – Every week we update members on trading activity, current holdings, and performance of our portfolio.

Daily State of the Markets – As a member, you’ll receive our “Daily State of the Markets” market analysis and commentary each morning BEFORE the opening bell.

TSP Reports and Research – In addition, you can choose to receive any or ALL of the following reports: (just click on the reports you’d like to receive in Your Account)

    • Breaking News – Up to the minute market news
    • Technical Talk – Stay on top of the key technical levels on the charts
    • What’s Driving Today’s Market – The key story of the day
    • The Big Picture Report – Stay in tune with major market cycles
    • Daily Stock Pick – Our pick of the day
    • Daily Focus List – The TopStocks we’re watching for a buy signal today
    • The 10.0 Report – The REAL “Best of Breed”
    • The Risk Manager Report – Learn to identify the Risk/Reward environment
    • TSP Market Model Roundup – We quantify the current market
    • The Insiders Report – What are the “insiders” buying?
    • Daily Upgrade/Downgrade Report – Stay on top of stocks “in play”
    • Earnings Scorecard – Who “beat the street” and who “missed?”
    • The TSP 100 – The top 100 stocks (updated monthly)
    • The TSP Smart Sector Report – Keeps you in tune with market leadership
    • TSP IRA/401(k) Portfolios – TSP Portfolios for your long-term assets
    • Top Stories – Never miss an economic report or top story
    • TSP Sneak Peeks – See what’s inside of TSP portfolios

Easy to Use and Understand

One of the keys of the service, other than performance, is its ease of use. As we’ve stated, we do all the work in terms of research and analysis, and then provide you with concise updates – all in real-time.

Do TopStock Ratings Really Matter?

We certainly think so, but sometimes it is best to let the numbers do the talking. Below is a table showing the average annualized returns for each rating category, as determined by historical testing performed by one of the country’s largest independent institutional research firms.

TopStock Ratings


9.0 – 10.0 +32.9%
8.0 – 8.9 +23.2%
7.0 – 7.9 +11.9%
6.0 – 6.9 +10.5%
5.0 – 5.9 +6.6%
4.0 – 4.9 +4.1%
3.0 – 3.9 +2.7%
2.0 – 2.9 -0.4%
1.0 – 1.9 -5.3%
0.0 – 0.9 -6.6%

Let’s Talk Price

The TopStocks TOP 5 Portfolio is a “pro level” portfolio that can easily replace your brok-er recommendations and those mutual funds in your portfolio. In short, you can be your portfolio manager for just $399 a year, which is less than $34 per month! (Monthly and quarterly plans are also available.)

Get Started With the TOP 5 Portfolio Today!