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Strategies & Market Trends : 99 RS stocks--WATCH THEM FLY HIGHER AND HIGHER

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To: freelyhovering who wrote (222)10/29/1997 4:49:00 PM
From: Early Out  Read Replies (1) of 836
 
I had neglected to consider that EPS was based only on TRAILING eps, which certainly makes a difference.

What I would like to know is how much of a difference in terms of stock appreciation does it make if you
find the stock before it hits 99. In other words, consider a stock that grows like this:

EPS RS
--- --
1 1
1 25
1 50
1 87
1 90
1 99
50 99
87 99
90 99
99 99

At which point did the stock price appreciate the greatest? While RS was rising to 99 clearly the stock
price was doing great, buoyed by the hope for future earnings. And then the next 4 quarters those
earnings were good, and got subsequently better, while all along the stock was strong, as indicated
by the 99 RS. Clearly, if I got in at the start I've done fantastic. But I could have
bought at any time along that timeline and done well. Does the stock price accelerate at 87 87,
or is this just backtested nonsense? Now, here is the kicker: IS IT TOO LATE TO BUY NOW?
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