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Jim Powell
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Tom Bishop


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BI RTom Bishopesearch -- edited by Tom Bishop -- is an 12-page investment newsletter which uses fundamental analysis and emphasizes mid to smaller cap stocks. The newsletter consists of a detailed recommendation that runs about two pages, followed by a brief market commentary section that also summarizes the recommended percentage of stocks vs. cash. 

The balance of every newsletter (about 9 pages) is devoted to updating subscribers on every stock we have recommended via updates that average nearly 1/2 page in length but could range to as high as a full page or more if big things are brewing, good or bad.  

Unfavorable developments aren't swept under the carpet. Subscribers get detailed updates every 6 weeks until a "sell" is issued.  Many services give you little more than the names of the stocks to buy and maybe a brief description, and thereafter never follow them up regularly or in any detail.

BI Research was started in 1981 to fill that void.  

From Tom Bishop ...

When I first started publishing BI Research back in 1981, my goal was simply to put out an investment letter that was what I myself always wanted in a newsletter, but couldn’t find.

  • With a detailed write-up that would enable me to make an informed decision without having to do alot of further research on my own

  • Then frequent, detailed updates on every stock the newsletter had recommended previously (until detailed Sell advice/rationale is given)

  • With a Telephone Hotline I could call to find out why one of the stocks just soared (or tanked)... or better yet, an emailed Update automatically sent to me

  • And, of course, the newsletter should have a good, long-term track record…

BI Research does all of this, and in the process we have frequently been rated in the top 5 for our performance by the Hulbert Financial Digest, who tracks over 100 of the best known investment publications like Value Line, MPT Review, OTC Insight, Oberweis, The Prudent Speculator, The Chartist, The Cabot Market Letter, Standard & Poors, etc.

And we haven’t just been well rated lately. Our track record shows we’ve been right up there ever since we first began publishing in 1981.  That’s more than 25 years.

To survive that long in this business you have to be doing something right. If BI Research sounds familiar perhaps it is because you’ve read about our past performance in CBS Market Watch, Forbes, The Wall Street Journal, The New York Times, Fortune, Money, Barron’s, Business Week , in countless places on the Internet, or even your local newspaper.

BI Research’s feature recommendation run two solid pages or more, jammed packed with the information, numbers, estimates and rationale you need to make your own informed decision.

Many newsletters offer you recommendations as short as one paragraph, or even a single sentence, sometimes just the name of the stock!  It’s just- "Trust me!  

Add these stocks to your portfolio and here’s a phone number if you want to research it any further."  Believe it or not, even today, a good number of the top rated newsletters do just that. (in fact- especially the top rated newsletters).

Then many newsletters never follow up their recommendations! Or if they do it’s usually sporadically, or just a table with some statistics, or maybe just a Buy, Hold or Sell next to the names of the companies… maybe not even that… maybe no mention of the stock ever again!

Unless, of course, it does well… With BI Research you’re never left high and dry. 

In each issue, (we publish every 6 weeks) you get 7 pages of information updating you in detail on EVERY stock we’ve recommended until we say to sell.

At any given time BI Research is following between 12 and 15 small to mid-cap stocks. So you get meaty updates, averaging nearly half a page, on EVERY stock we follow in EVERY issue. 

And if things are really hopping, a stock’s update could go for a page or more. I routinely talk to a company spokesman in detail before writing each update.

In addition, we provide a Telephone Update Line which you can call to get a recording covering the latest on what is happening to our stocks between issues.  

If one of our stocks soars (or tanks) odds are very good you can call the Update Line and find out what is going on and our read on it.  Email delivery is also available (see below).

BI Research uses fundamental stock research and the time tested BI Ranking System to select new recommendations. The BI Ranking system is a weighted index that considers Relative Strength, EPS growth rates, EPS surprises, PE to growth rate and other relevant factors.

The BI Ranking System was originally developed in the 70’s and is based on a weighted average of 11 factors, each of which has been determined to have some correlation with the movement of stock prices. 

Quantitative scores for each factor are weighted according to the intensity of that correlation as reflected in past experience. 

Logic would say that stocks which rank highest overall on these 11 factors would outperform other stocks. And this has proven to be the case. These factors are:

  • The percentage earnings increase projected over the next year and next two quarters

  • Relative earnings growth persistence

  • Relative price strength
  • ·Earnings growth expected over the next 4 years

  • Change in earnings estimates

  • PE to growth rate ratio

  • Solution to the Problem" status

  • "Black Cloud/White Cloud" index (For example, soaring oil prices would drag a black cloud over trucking stocks)

  • Takeover candidate?

  • Wall Street sentiment and insider trading
  • ·Financial strength (balance sheet)

The system was developed by the editor at Cornell University while earning his MBA back in 1973-74 and has undergone periodic adjustment and improvement since that time.

Past study has indicated that a rank over 7.0 is an acceptable Buy while stocks ranked 4.0 or less should not only be sold/avoided, but might prove worthy turf for finding short sale candidates.

The relative weightings are, of course, proprietary and, as you can see, the factors are to some degree relative quantifications of judgments.

But therein lies one of the advantages of the BI Ranking System - you just can’t capture the stock market with numbers. Indeed, a psychologist might fare as well on Wall Street as a stock maven.

Furthermore, stocks ranked in the 8 to 9 area outperform stocks ranked in the 6 to 7 range and stocks ranking over 10.0 have on average outperformed all other stocks.

Unfortunately, stocks ranked over 10 are difficult to come by - often just a few each year. One performance enhancing strategy is to overweight stocks ranked 9.0 or higher.

To help BI Research subscribers follow the BI Ranks of the stocks we cover, the first line of each stock’s update contains the most recent rank.

It is not a cure-all and a sudden news release can send the stock and its BI Rank reeling, or soaring… but that’s the stock market for you. Using the BI Ranks has given us our past performance edge.

The Hulbert Financial Digest has frequently ranked BI Research among the top 5 investment newsletters for its long term performance.

BI Research reviews hundreds of stocks and boils these down to the 3 to 5 many services would recommend.

But then we go one step further, analyzing these in depth for you using the BI Ranking System to help us pick the one stock for each issue about which we are the most excited. After all, that is what you really want to know, isn’t it?

Now, I realize most of you don’t have the time (or money!) to research, analyze and follow a large number of stocks, to talk to management and search through the many publications and Internet sources that carry information on them. 

I know that most of you can’t afford to put in the kind of time that BI Research does looking for the next big winner. But I also know when I find it you won’t want to miss it! Relax! Let BI Research do the work for you.


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