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

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To: James Strauss who wrote (330)11/2/1997 12:57:00 AM
From: Christopher  Read Replies (1) of 836
 
I don't think that watching RS growth is the key here.
Take for example a company that just posted their quarterly
earnings that were excellent. This will cause the stock
to be bought and the RS will go up. You buy the stock but
it has already gone up. The point I am trying to make is
what Mr. O'neil makes in his book "How to Make Money in
Stocks". For a stock to raise or continue to raise a
company must have good earnings, sign new contract which
causes the stock to raise, have a new invention or a
product that they are selling and continue to bring in
growth for the company which in turn will cause the
to be bought and RS to go up. Let me give as an example
the last two stocks I bought myself. I bought THQI and
IVIAF. Both of these had an RS arround 75. After I read
the news about them I knew they were going to get a high
RS and they did. THQI hit 96 and IVIAF hit 97. IVIAF had
just announced their earnings and they were up 640%!! The
point I am making is to see wheither a stock is going to
go up in RS may be in the news. It worked for last two
stocks I bought! May be watching RS is also usefull as well.
Mr. O'neil recommends that before you buy a stock to make sure
it has a new product, new management, etc. that will
eventually make RS go higher.

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