zflk blitzkrieg paradigm

I'll tell ya, it's a cold world out there.

But anyway, when the news of Viagra (the
potency pill) hit the media, the stock of Pfitzer jumped up
only about 10%. Why? Simply because Pfitzer's stock was
already selling in the $90 to $100 range per share and the
company is so strongly capitalized, even the best of
news can only create a relatively small (by my standards)
increase in the stock price.

But, what if a much smaller company with stock
selling at $2.50 per share had announced it had come up with
Viagra and had obtained FDA approval to market that product?
We can't know precisely but, it's almost certain (assuming
we're talking about a solid little company) the price
of the stock would have skyrocketed from $2.50 to... at least... $7.50, $9.00... $11.00 or even more per share. It's very
simple: It's much easier to double the value of a company
worth a mere $50,000,000 (a "micro" cap) than it is
to double the share price of a company worth
$50 billion
dollars. It's also much, much easier for a $2.50 stock to
double in price than it is for a stock that's already selling
for 90 fungolas or more.

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.