In my last article, on October 14, I told you how to select stocks poised to generate big gains by adhering to certain company and stock criteria. As a reminder, those criteria include the following:
1. New products/services
2. Limited competition
3. Strong financial condition
4. Rapidly Increasing revenues and earnings
5. Publicly-traded for less than 5 years
6. Undervalued relative to the company’s earnings growth
7. Institutional demand
I also told you some ways to identify stocks and underlying companies that possess the criteria outlined above, such as using stock screens and reviewing Investor’s Business Daily’s Top 50 Stocks, which is presented daily on pages 1-3 in the B section of that financial newspaper.
But, to ensure that you get the right data and information regarding any given company and its stock, you need to dig deeper.
Although doing so requires devoting some time to research, I’ve found over the past 20 years of speculating and investing in stocks that the results are usually well worth the effort. For example, some basic research that I conduct on a regular basis has enabled me to identify some of the bigger stock market winners over the past 20 years, including TASER International (TASR), Intuitive Surgical (ISRG), and Baidu (BIDU), as well as numerous other big winners – before they began to appreciate substantially.
So, where can you go to get the right information and data on companies and their stocks?
Try going to www.reuters.com/finance/stocks. By entering a company’s name or stock symbol at that web site, you can quickly retrieve the following information on any given publicly-traded company and its stock:
- General information about the company and its products/services
- Recent news regarding the company
- Key company developments
- Institutional ownership
- Significant financial metrics, including the company’s earnings growth rate, its revenues and earnings per share for each of the past 8 quarters, P/E ratio, current ratio, long-term debt-to-equity, profit margins, and several other financial ratios.
In regard to a company’s financial metrics, I encourage you to also go to the U.S. Securities and Exchange Commission’s Edgar page, at www.sec.gov/edgar/searchedgar/companysearch.html.
At that site, you can retrieve any given company’s financial statements for further research and analysis.
After gathering information concerning a company’s products and services, its financial condition, revenue and earnings growth, valuation and institutional ownership, I recommend for you to go to www.stockcharts.com
At that site, you can review the recent trading action in any company’s stock and do some quick technical analysis to determine if the time appears to be right to purchase or sell the company’s stock.
If you prefer someone else to do the research, I encourage you to visit the stock recommendations page of my firm’s Internet web site, at www.investorsmonitor.com/index.php/stocks/stock-recommendations.
On that page, we provide information – in a condensed and easy-to-understand manner – regarding the key criteria outlined above for companies and stocks that our research indicates are poised for substantial gains.
If you want to know when our research indicates the time is right to buy or sell any of the stocks displayed on our Stock Recommendations page, I encourage you to subscribe to Frazier’s Strategic Allocator.
Although we generally charge $279 per year for that monthly investment journal, we’re offering it for a discounted price of only $199 per year to investors who learned about us through Weiss Educational Services.
Until next time,
David Frazier is President and Chief Market Strategist of Frazier & Mayer Research, LLC, an independent investment research firm that offers customized research and analytical services to registered investment advisors, hedge funds and high net-worth individual investors. You can check out his latest insights at: www.investorsmonitor.com.