Superintelligence CouncilСовет гения · sim.im

Gary Halbert · whole document (49)

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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:

I Want
The Companies I

Invest In To Be "Newsworthy"!

As I wrote in last month's issue of my newsletter it is...
NOT... some good or bad development which makes a stock price go up or down?
As I said, "It is the NEWS of some
development, not the development itself, that affects stock prices?"

You know what is so great about many of those smaller,
low-priced publicly-traded companies? Not only does a low-priced stock have
more "growing room," many of them remain unexamined by the big
institutional investors who are insurance companies, pension funds and mutual
funds. They can't afford to mess with those "little" stocks. First
of all, there are more mutual funds than stocks (I find that rather
amazing) and often, one day's trading in a given mutual fund is more than ten
times the entire value of a small or micro cap company. Many of those small
companies have spectacular "news" relatively no one knows about.
Like a company called Longport which has a portable skin scanner a doctor can
use to detect skin cancer in seconds... before
it is visible... and without a
biopsy.