Superintelligence CouncilСовет гения · sim.im

Gary Halbert · whole document (80)

zflk blitzkrieg paradigm

Stocks priced from $4.00 to $4.99 made up 2.1%
of the big gainers.

Stocks priced from $5.00 to $5.99 made up 3.2%
(a little statistical anomaly there) of the big gainers.
Finally...

All Stocks Priced

$6.00 Or More Represented

Only 4% Of The

Big Gainers

So, Buckwheat, here's what I've decided so
far: I'm only going to bet on stocks listed on the NASDAQ
priced from $1.00 to $2.99... because... those stocks
represent 19.2% of all the big gainers... and... these two
selection criteria have enabled me to eliminate having to
examine 98.5% of all stocks listed on all three of the
major exchanges.

But, my friend, we ain't done yet. Not by a
long shot. Just because a stock is priced between $1.00 and
$2.99 and listed on the NASDAQ doesn't mean it makes the cut.
Nope, all we've identified here is the "preliminary
pool" of stocks we are even willing to look at. There are
numerous other
hurdles even these stocks have to overcome before they qualify
as a "pick."

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. Don't make the mistake
of thinking all low-priced stocks represent shares of tiny,
small companies. That's not true at all. On Wall Street, a
company's size is determined by its capitalization. If you
take 100% of all of the shares of stock in a given company,
and then multiply the number of those shares by the price of
each of those shares, the number you come up with will be the
"capitalization"... or... the stock market's opinion
of the financial worth of that company. For example: If a
company's shares are currently selling for $2.50 each and, the
company has a total issue of 20,000,000 shares, that company
has a total capitalization of FIFTY MILLION DOLLARS!

Hey, that doesn't sound like such a small
company, does it?

WRONG! At least, according to the stock
market. As far as Wall Street is concerned, a company worth
$50,000,000 or less is..

A "Micro" Cap