Gary Halbert · whole document (49)
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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.
By the way, I have not
invested in Longport because it is not traded on any of the three major
exchanges. But, if it was, I would invest in it... because... not only
do the stocks I invest in have to get through my price parameters, volume
parameters and all the other hurdles...
They Must Also Have
A Terrific And Mostly
Untold Story!
Plus, these have to be
stories... that... I have reason to believe the mainstream investment
publications are about to "discover."
OK, now that you know
all that, here are the stocks I've invested in this month: