INVESTools Bonus Report
By Richard Fellner, Managing Editor, INVESTools
In This Special Issue:
1. Taken Investing Advice from a Guy Named "Rocko"
2. Gone "Fishing" without a "Net"
3. "Choked" on a Flavor-of-the-Month Stock
4. Gone Bullfighting in the Bear Pen
5. Bought a "Titanic" Instead of a "Tugboat"
Have You Made These Five Investing Mistakes?
(and how you can correct them)
The recent market volatility has triggered a wave of
inquiries from many of our subscribers. Many of them have
made mistakes in their investing strategies, and they need
help to get back on track.
The following are five common mistakes made by investors --
and how to correct them. I have also included some links
that may be helpful in each situation.
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1. Taken Investing Advice from a Guy Named "Rocko"
Let's face it, we all know someone who's got a "Hot Tip" on
a "Great Buy" stock opportunity. Whether it's a friend,
colleague or family member, this person always has some
"special information" on a company that has somehow eluded
top analysts and advisors.
While some of these tips can turn out to be profitable, the
majority turn out to be real duds.
So you turn to a professional. Perhaps a money manager or
stock advisor. But which one? How can you be sure that a
particular advisor is any better than another? Nobody can
predict the market perfectly every time. Nobody.
In today's volatile market, it is critical to get the best
advice from a variety of sources. So why base your critical
financial decisions on just ONE advisor's recommendations?
Wouldn't you feel more comfortable with a second opinion? A
third? More?
One of my favorite publications at INVESTools is The Spear
Report, which gives you the top "Strong Buy" stock picks
from SEVEN of the nation's leading advisors.
Out of over 2,000 investment newsletters in the US, Gregory
Spear takes the top seven most profitable newsletters at any
one time. He then lists and ranks any stocks that are
recommended by at least five of the seven advisors.
I highly recommend this publication. Every week, you'll
discover the market's hottest sectors -- and which stocks
are the leaders of their sector. You'll profit from Spear's
expert commentary, portfolios and analysis. And you'll get
the security of knowing that each of these top stocks has
been given a strong vote of confidence by top analysts.
Take a peek at The Spear Report, available FREE for 30 days:
Click
Here
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2. Gone Fishing Without a "Net"
Which Internet stock should you choose? Just because a
company has a "Dot-Com" in its name doesn't mean it's a
strong company.
Advisor Carlton Lutts, Editor of Cabot's Internet
Stock of the Week, uses these time-tested, fundamental
investing techniques to identify strong Internet stocks:
* A major portion of the company's business is expected to
come from the growth of the Internet. Thus the company will
have the power of the Internet to contribute to its future
earnings growth.
* The company provides a revolutionary product or service
with a major benefit. In fact, the benefit must be so great
that customers, once started, feel extremely reluctant to
stop using the product or service.
* The company serves a huge mass market. This translates
into more customers, more users, more sales potential and
more earnings potential.
* The company has little or no debt. This means attention is
focused on generating value for the shareholders rather than
on generating interest payments for the creditors.
* Management must instill confidence in the minds of its
shareholders and fear in the hearts of its competitors. In
this cutthroat industry, top-notch management is a key
requirement for a company's long-term growth.
Lutts uses these fundamental techniques to zero-in on one
solid Internet stock each week with the potential for
a powerful price runup. Lutts targets Silicon Valley
innovators growing revenues 100% to 300% per year.
For Lutts' weekly Internet powerhouse stocks, check out
Cabot's Internet Stock of the Week, FREE for 30-days:
Click Here
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3. "Choked" on a Flavor-of-the-Month Stock
Ever wanted to get "in" on a market powerhouse BEFORE it
gets hot... before anyone knows about it ... when the price
is still a bargain?
But how do you find these stocks? Many of them are out of
favor; virtually ignored by many analysts because they don't
happen to be Wall Street's "Flavor of the Month."
"While many investors pay dearly to trade the big-cap,
growth favorites like Cisco, Qualcomm and Yahoo, value
investors have been quietly scooping up some of the best
deals to be had in decades," says Al Frank, Editor of The
Prudent Speculator.
A perfect example of this is the semiconductor industry.
Semiconductor stocks are now all the rage. But until
recently, they were relatively quiet. In fact, during the
1998 "Asian Contagion," most advisors were telling their
clients to DUMP their semiconductor stocks as fast as
possible. As a result, the prices went down to a fraction of
their value.
But value investors saw something different. Al Frank's
research uncovered that there could be a 12% INCREASE in
computer chip sales for 1999--which would directly affect
the semiconductor industry. Frank advised his clients to BUY
semiconductor stocks when the prices were at a bargain.
In 1999 the sector rebounded, and investors in two of Al
Frank's stock picks (Applied Materials and LSI Logic) earned
nearly 500% profits on their investment.
By focusing on solid companies with bright futures,
subscribers of The Prudent Speculator have quietly and
consistently discovered the out-of-favor, undervalued gems
of the market BEFORE they became the "Flavor of the Month"
on Wall Street.
For top-rated analysis of tomorrow's hottest stocks (at
today's bargain prices), take a look at The Prudent
Speculator, available FREE for 30 days:
Click Here
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4. Gone Bullfighting in the Bear Pen
You buy a stock and then it plummets; so you sell the stock,
then watch it skyrocket to a new high. Few things could be
more frustrating than mistiming the market.
With the current market volatility, many investors want to
know whether they should continue to hold or begin buying
everything in sight. One subscriber recently asked, "...if
it IS the time to buy, WHICH stocks should I buy right now?
Are certain stocks stronger than others?"
"Investors should look for something called 'Relative
Strength'," advises Dan Sullivan, Editor of The Chartist.
"It's a technical term, of course, but very straightforward:
'Relative Strength' simply tells you how strong a stock is
compared to every other stock in the market. If you can I.D.
a stock that's stronger than 95% of its peers, you profit."
The Chartist focuses on the fast-moving stocks with high
Relative Strength rankings and strong fundamentals. Using
Dan Sullivan's renowned consensus model, subscribers of The
Chartist have learned how to take advantage of bullish
industry segments while avoiding the pitfalls of a
potential bear market.
By the way, The Chartist is rated among the top newsletters
in the nation by Forbes Magazine and the Hulbert Financial
Digest. Based on his portfolio returns, Forbes recently
rated Sullivan's Chartist newsletters as the #1 AND #2
investment letters for both bull AND bear markets.
For top-rated research on market trends and stock analysis,
I suggest you look at The Chartist. You'll discover the top-
rated stocks that are significantly stronger than the
overall market.
Try The Chartist FREE for 30 days:
Click Here
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5. Bought a "Titanic" Instead of a "Tugboat"
You hear about it all the time: "Stock in tiny XYZ Corp.
steams ahead to record-high gains!" Meanwhile, your
"unsinkable" stock has left you wondering: "what was that
'crunching' noise and why is the floor wet?"
Every day, hundreds of smaller, lesser-known companies
with the potential to sprout into earnings powerhouses are
traded on the market. But, since most analysts and
media reporters focus their attention on the big-cap, high-
volume newsmakers, the majority of these acorns go
undiscovered by many investors.
"Many of the market's largest companies have 15 to 20
analysts following the stocks, and everyone knows all there
is to know," states Jim Collins, editor of OTC Insight.
"Since only a handful of Wall Street analysts follow the
stocks of smaller companies, they are priced inefficiently
and bargains may often be found."
If you like to invest where there is less competition, and
would like to find the OTC stocks capable of 30% to 60%
annual gains, then I recommend you try OTC Insight.
OTC Insight is Wall Street's #1-rated newsletter for total
returns over the last FIVE, EIGHT and TEN years. In 1999,
OTC Insight achieved a 153.1% gain, and was the ONLY
newsletter to beat the Wilshire 5000 on a risk-adjusted
basis (Hulbert Digest; Jan, 2000)
For a FREE 30-day Trial to OTC Insight, go to:
Click
Here
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