This, based on my research, is the kind of chart that represents a fast profit opportunity. It doesn't represent the fastest kind of opportunity, but it's typical of fast type opportunities. I'm talking about right now, the end of October, 2014, at a price of $7.28. Back at the end of 2013, it also represented - even more emblematically - a fast type opportunity, and now, ten months later, it's up more than 5 times. It might have been a lot of work to find it, back in 2013, but today I found it by running a scan, at the Finviz screener, for stocks up more than 500% from their 52 week low. I didn't expect to find anything to buy - I was looking for examples of things that would have been good to buy a year ago - but the first stock on the list (there were a half dozen - it's a selective scan) - has a quite good chart.
Thinking about buying this? The financial number - revenues, earnings - say it's worthless, and you shouldn't ignore that. Don't buy a lot. Maybe put in 1% of your investment money. That's my disclaimer, and it's important. But the chart has a lot of positives, today, and the next price targets are 18, 40, and 59. Do you see them in the chart? It will probably go to 59 in waves, over, oh, I'd say, a one year period. Any of those targets would be good places to take profits or exit the position.
One year ago, this stock was fairly emblematic (quite emblematic? truly emblematic? just emblematic?) of a fast type opportunity. Opportunities of that type are tricky. It's definitely possible for that kind of stock to become worthless. Assessing whether it will or not is tricky, at best. Definitely do not put a lot of your money in any stock of that type. If you bet on some of these and loose, you just have to treat it as a learning opportunity. What did you miss in the chart? Or in the fundamentals? You'll be more motivated to figure that out. Sales and earnings don't justify a purchase. Was there something in the balance sheet to compensate for that? Was there something in the company profile, or the management profile, to compensate for that, to justify the expectation of a rebound in price on the market? You did read the latest 10k, didn't you? What about the most recent prospectus? (I haven't, but I know I'm taking a risk. I also haven't yet bought the stock. I'm still thinking it over. I'm still thinking over whether I want to put something like 10% of my cash in this. $200? If I sell it at $18, let's say two months from now, it's a double. I'd like to more than double my money in that amount of time. But, I am looking at this fun chart, right now, and finding these is a chore, somewhat, so, I'm thinking about it. From reading this, from looking at this chart, you should be able to assess the upside potential in similar charts. Be careful, but, Explore the realm!)
To broaden your base of knowledge, read some of the books listed below. Or (or rather, AND), read this letter, from this web page, from this web site. Enjoy!
I started the day thinking hard about how to create a product and then get payed for having done so. If you'd like, you can read more about that in the previous post, which I named "index", but I'm going to rename it it index20141028tu, because this blog might end up having lots of index posts. (In index20141028tu I somewhat discuss the reasons for that.) I've been thinking about how to deliver a product and get payed for doing so for, really, a long time, and I've yet to accomplish it. But I feel more determined than ever, and maybe that's a good sign. Going back a little further in the history of this post, I've been discussing things, in a manner of speaking, with people, on a Facebook page where people discuss things quite a bit (which I was fortunate to discover - even though the discussion, there, is fairly annoying - despite which I would say, based on the experience, that discussion is quite valuable, that the opportunity to discuss things with people is valuable). I wrote about my idea that creating a company is a good thing to do. I sort of meant starting a business, as much as creating a company, but, anyway, I got all sorts of warnings that I was setting myself up for all sorts of trouble. Based on that I'm thinking about, as a topic, low risk business ideas. (And, going back to the question of investing in stocks, is that, can it be, low risk? Well, I told you, don't put a lot of money in some crazy stock. If you put in a little, and it turns out to be crazy in a good way, you'll actually make money.) Anyway, all I am risking here is a day of work. I mean, maybe I'll get in a heap of trouble by writing this stuff, but, I kind of doubt it. The question that remains is, how do I get payed for having done it? So, going with that, I suppose I could make it into a subscription kind of thing, but, for REASONS, I don't want to. (One reason is so you can just read it.)
So the obvious answer is, I need to put some kind of advertising on the page, here. (I discussed the here and there of that somewhat in the index post just referenced.) If you buy something, thank you!
