| An SI Board Since October 1997 |
| Posts |
SubjectMarks |
Bans |
| 836 |
21 |
0
|
|
Like many, I have always searched for the best of the best in various activities and endeavors--a perpetual search for excellence. And why should it be different with the stock market? As a fan of Investor Business Daily (IBD), I have become enamored with O'Neils rating system of stocks by earnings (EPS) and relative strength(RS). The highest rating of 99 in both means that the stock is better than 99% of all stocks in the US major markets. A tutorial article in IBD several months ago pointed out how these stocks are not only the current top of the heap, but they persist as 99ers for a long time and recover very quickly and powerfully from corrections. To possess a 99 rating in both EPS and RS is so rare as to be somewhat irrelevant for study as there are only a handful of such stocks at any one time. Also, I have been impressed, in my casual watching of 99ers that many with quite low EPS ratings perform just as well or better than those with high current earnings. I would assume that the market is telling us that great earnings are on the way. With this in mind, I thought a thread could be devoted to all RS-99 stocks and profit could be gained from the study of these market anomalies that defy gravity. I have a few points of focus to start and hope others will add others. One, is to study corrections in these stocks and to find ways to jump on them prior to their re-launching. Secondly, what about the early stages of being a 99 stock; that is, lets take a look at those 99ers under $15 and see if these become the JBIL's of the future.(BTW JBIL is a likely great buy right now at some point during this corrective phase.) Third, what about option plays on the older, pricier 99ers. Most of them, at maturity, tend to have options. So I would invite some good option players to participate in this thread to help the rest of us recognize quick dollar opportunities in these most powerful stocks. Finally, perhaps by close study of the 99ers, we can begin to get a feel of what make these stocks 99ers in the first place and begin to recognize future candidates. To help me in this endeavor, I have enlisted the assistance of Peg, the archivist of "The 56 point TA with an Attitude" family of threads. Peg will be looking at the EPS side of the equation and provide current and forward earnings projections to assist us in our studies. In an early post I will list the current 99ers as per Wordens TC2000 pro list for the close on Friday. There are currently 66 stocks that are 99ers.
|
|
|
