Thursday, June 25, 2009

About Investing

As we look at different stocks to invest in there are a few main things we look at.

1. What kind of volume has been traded and has it been consistent or growing?

2. What is the 52 week high and range of the Stock.

-We look at the 52 week high because we want to see what the potential of the stock is... if the peak of a stock is .05 and its currently .01, then the most I would expect out of the company is .05 or a little higher. If a stock has a 52 week high of 45.00 and is currently .05, then I see potential for major growth as they restructure their company to turn things around... in other words.. they have experience at that range and potentially can get it back there quick.

3. What are the Company goals and Focus. Do they apply well to today's economy and focus.

One thing we do not do as an investment group is look at all of the woe's and no's of the the Economical headlines. If you focus too much on the negative out there you will pass by and miss some really good stocks that's can yield large dividends on your money in a very short time. Don't get me wrong, you do want to cover company related news and updates and keep track over overhead and debt the company has.

We do not believe in the Pump and Dump ideas... All Pumping and Dumping does is build false growth and yes while it may give a return on your money, if you can find the stocks that can rebound from the people pumping and dumping you can grow your money over 1000% fast.

We look for companies that are just starting out or have hit rock bottom but are large enough and or old enough to buckle down and rebound from their losses.

We also look for stocks that go with the flow of the new Government Regime. Stocks that may benefit as the new president rolls on.

We invest based on the 3 stats above and off of initial feeling about the stock. Lets face it... investing is like gambling.... except its more structured and you typically don't lose your money as fast... you have to be willing to take a risk and sit on your risk even if you are losing money. When we are picking stocks if we have one negative thought or red flag... immediately we quit talking about that stock as move it to the way side no matter how minimal the red flag is.

So far our picks have been incredibly in the green and each stock at one point or another has yielded 200-500% growth or more.


Specific Stocks to come... happy investing!

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