Superintelligence CouncilСовет гения · sim.im

Gary Halbert · whole document (49)

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The first of the next hurdles is volume. If a stock has a very
thin daily volume, just the fact you invest in that stock will make it
skyrocket in price.

Conversely, if the daily volume is too high, way too
much of a mountain of money has to be moved to effectuate a 50% or more jump
in price.

If you are at all active in the stock market, you are already
aware of the success of a small group of stock market experts (they really
are) who have an informative website and write books on a how a "Motley
Fool" should invest in stocks. I recommend their material since it's very
informative. Here's an eight item checklist they use to select stocks worthy
of further examination:

1.

Sales of 200 million... or
less!'

2.

Daily dollar volume of trading three million dollars... or
less!

3.

Low share price between
$5.00 to $20.00. They maintain stocks priced at less than $5.00 are "junk." I disagree.

4.

Net profit margin of 10%
or more.

5.

Relative Strength (study
Investor's Business Daily to
learn what this means) of 90 or higher.

6.

Earnings or sales growth
must be 25% or greater this year than it was for the same quarter last
year.

7.

Insider holdings must be
at least 15%.

8.

Cash-flow from
operations must be a positive number.

All in all, this is a good checklist. My criteria are a bit
different but, not too much. However, there's something I consider much
more important than all of this put together. Namely: