Investment Strategy

Southern Capital Management investment strategy is to invest mainly in the common stocks of widely-recognized, well-managed companies that have earned positions of leadership in their individual market sector by providing outstanding products or services over decades. Southern Capital Management seeks to purchase stock in these franchise companies at or below their calculated fair value according to a proprietary analysis system. Southern Capital Management holds these stocks as long as they maintain their financial strength, superior management, and dominance in the marketplace. On the other hand, Southern Capital Management will sell all or a portion of a stock position when the stock price far exceeds the earnings support, earnings growth stalls, or the company no longer maintains its position of dominance in its industry.

Southern Capital Management might invest a portion of your assets periodically in U. S. Treasury securities, corporate bonds, and preferred stocks when economic and market conditions warrant such investments. There will be times also when the firm will pursue a defensive position with growth accounts to protect capital by investing in short-term income securities. Also, an interest-bearing money market fund is used in each account to receive deposits and dividend payments and proceeds from our selling a stock in your account.

If you seek income each month, you can write checks from your money-market account or have deposits wired to your local bank account. Southern Capital Management will work with you to establish withdrawal schedules and make sure that sufficient cash is available to fund the withdrawals.

Economic conditions and federal monetary policies significantly impact the stock and bond markets, and sometimes stocks and bonds lose value. There is an element of risk in investing that separates it from savings, but historically, stocks have significantly greater returns than certificates of deposit or savings bonds.

Even in a market downturn, Southern Capital Management seeks to invest in blue-chip stocks and high-quality fixed-income investments that have the potential for a substantial rebound in share price when investment conditions improve. Southern Capital Management believes that a long-term investment outlook and the commitment to tolerate declines in market values during unfavorable investment conditions provide the foundation of a successful investment program.