To: Cornstock who wrote (357 ) 11/2/1997 9:32:00 PM From: Christopher Read Replies (1) | Respond to of 836
I would like to point out few things, First, good job on these numbers. Next, Mr. O'neil says in his famous book that in a down trend market, if you select every stock 100% as he recommends then three out of four stocks would lose money. Last Monday the market lost a lot of points. Taking that into consideration, I can understand why we have a loss of money. In addition, I have been watching CNBC Market Wraps for a while now. Analyst have been consistant about saying that in this volitale environment for companies to make it they need to show strong earnings now and for the near futures. What does that means? The current companies with 99 RS, if they don't have good strong earnings for third quarter and projected strong earnings for 98 then they won't be leading for long. Here is what I suggest. In addition to selecting high RS stocks, it may be a good idea to review third quarter earnings, four Quarter, and first quarter of 98. As an example, I have mentioned THQI in previous message. THQI went from $15.50 to $13.00 last Monday but rebounded next two days. Myron you quoted the 99 RS percentage increase for last Friday. Two stocks only made almost 9.5 % increase KSRL and LBOR while all others made arround 5 %. THQI went up over 8.5% last Friday. The reason I bought THQI is because for Four quarter of this year they released PAX II which will generate a lot of income and they signed a contract with Sony to bring in a game from Europe to US the first quarter of next year. THQI have strong projection earnings for fourth quarter and first quarter of 98. This in my opinion is very important at this time in the stock market no matter what selection criteria we use. Companies that have posted a loss for third quarter have been crucified. This was my two cents in. I have seen a lot of good ideas so far on this thread. I have a feeling we are going to get RICH!!!!!