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John V.
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My methodology is based on William O'Neil's brilliant book "How to Make Money in Stocks" and I'm constantly searching for super-winning stocks. I utilize the CANSLIM strategy popularized by O'Neil and I've added minor modifications to suit my needs. The steps in my process are: 1.... More
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Keep Investing Simple, Stupid!
  • Primary and Secondary stocks 0 comments
    Jul 11, 2011 3:47 AM | about stocks: LULU, NFLX, SODA, CROX, DMND, FOSL, MNST, HLF, QCORQ, UA

    On the right-hand column of my blog I have an area entitled "Stocks of Interest".  These stocks are the ones that I like after reviewing the screening list each week.  Typically these stocks are doing well in the market and worth keeping an eye on and I would definitely consider them to be "Leading stocks".

     

    Within the list I have further divided them into what I call "Primary" and "Secondary".  The reason I have done this is because not all stocks are the same.  Some are strong yet maybe the profit potential just isn't there, or maybe they are in an industry that is controversial and are riskier than they appear.  Stocks are not equal so I wanted a way to break them up between those I like and those I really like.

     

    The Primary stocks are the ones that I feel have the best chances for making a meaningful move that investors can profit from.  There is also a good chance that I may own some or all the stocks in the Primary list.  I don't divulge my holdings and neither should you, plus the idea is for you to learn to do this on your own and not just follow what I'm doing.  I'm happy to educate but I won't do it for you.

     

    Primary stocks should definitely be movers, have strong potential, and maybe have a great business model, successful product, or some other compelling factor.  I change them frequently based on conditions and my view of their probability of success.  Probability is everything when investing in the market.

     

    Secondary stocks are stocks I like but feel that they might have a lower Probability of success than the Primary ones.  They are considered market leaders as well in my view, but for some reason I just didn't feel like bumping them higher in my rankings.

     

    My watch-list is based on personal preference and not on a scientific formula (only the screening is mechanical), so you may disagree on the potential or other factors.  Just know that if a stock is on that list it has to either be doing something great, or potentially 'might' do something great.  There are far worse names out there to invest in so if you see any stocks you like in the list then consider that a good starting point as you do your own research.

     

    For charts I thought it would be good to go thru the Primary and Secondary lists and see what these stocks are up to.  If any of them can tell us the future then I think these have the best chance of doing so.

     

    First the Indexes with the two strongest being the Nasdaq and the Russell 2000 in my opinion:

     

     

    Primary Stocks:

     

    Lululemon Athletica (NASDAQ: LULU)

     

    Netflix (NASDAQ: NFLX)

     

    Sodastream International (NASDAQ: SODA)

     

    Secondary Stocks:

     

    Crox (NASDAQ: CROX)

     

    Diamond Foods (NASDAQ: DMND)

     

    Fossil, Inc. (NASDAQ: FOSL)

     

    Hansen Natural (NASDAQ: HANS)

     

    Herbalife Inc. (NYSE: HLF)

     

    Questcor Pharmaceuticals (NASDAQ: QCOR)

     

    GT Solar (NASDAQ: SOLR)

     

    Under Armour ((NYSE: UA)

     

    Lastly, it is summer out with long days and hot nights, so please don't worry if you see a change in the frequency of my posts.  I'm still keeping track of things, it just takes me longer to get to them.  Have a good week!


    Stocks: LULU, NFLX, SODA, CROX, DMND, FOSL, MNST, HLF, QCORQ, UA
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