marcelformula

Friends In the Stock Exchange

Marcel's Common Sense Fomula to select a great Stock

10 steps to select a great Stock:

(Earning per shares of all DOW Companies) multiply by ( No. of shares in NASDAQ) ÷ Divided by (Allen Greenspan age) equal = CISCO Systems

In the meantime, we have to do our research the hard way. The common sense approach is to cross reference existing research from the Value Lines, Standard & and the Investors Business Daily to come up with a great stock.

To start the process, you have to select a couple of the hottest Industries (check this web site first - check the Value Lines recommendation - check Financial Magazines and CNBC or the Internet). "The Outlook Annual Forcast" from Standard & is one of the best place to start.

Select the top 3 to 5 companies in that Industry
Go to your local Library and look up the Value Line chart of those companies.
Select any companies with a Timeliness of 1. (That's their highest ranking. Those companies are expected to outperform the market).
If there isn't any, look for Timeliness of 2 or move on the next industry.
Once you have 3 to 5 companies, make copies (don't be cheap, it's only $.10 a copy). If it's your first time, be patient and don't be intimidated by all those numbers. It's less complicated than it looks.You don't have tounderstand most of them. (It just make you look smart to your co-workers or relatives). If you need help, visit the Value Line University.

Check for past and projected earnings (above 25% is recommended).
Check for zero or low Dept. (Some industries will have more debt than others will).
Check for past and projected sales. (They will show you sales and earnings for the last 10 years). See if earning is increasing at a comparable rate or at a faster rate than sales. If sales are up and earning is flat or going down for any quarter, dump it.

Run a Standard & Poors report on your 3 companies and check their rankings. A Buy recommendation**** or a Strong Buy***** is desired. (They use stars to rank their Companies). If you open an account with Waterhouse Securities, you can get these reports for free.
Check a copy of Investors Business Daily ( the Fridays copy is recommended) to check for:

Earnings Per Share rating EPS of: 85 and above. Their ranking goes from 1 to 99
Relative Strength Rating of: 85 and above.

Understand the Companys product - who is their main competitor and who is gaining market share?
Now you have to make your decision. One of those companies will stand out. If you can't decide, try to get a monkey, give him or her a dart and you can guess the rest of the story.
Go with your gut INSTINCT (if you are wrong, it's only your money). Most likely, most of your finalist will be a good choice to buy. If you follow all of my 10 steps, you will achieve astonnishing market results.

This simple strategy should give you the stock market rewards you may have thought were way beyound your reach. It's as easy as counting to 5. (If you can't count to five, maybe you shouldn't invest).Investing is an educated form of gambling. You should only invest what you can afford to loose.

The common sense way to beat this Market

An investor biggest challenge is how do you find the very best Stocks to invest and when do you buy that stock. Despite all the talk of a runaway Stock Market, only a few stocks double or triple in value each year. Most of NYSE and NASDAQ companies are trading below their 200-day moving average.

Here is how FISE does it. Look for Leadership: Choose companies that post strong earnings and sales growth. Cisco System has produced extraordinary results ever since it went public in 1990.

Quality of Ownership: Invest in the top industries and buy the top 1st. or 2nd. rank company of that industry. Look for companies that have a product that dominate their market. Oracle Corporation is the backbone of the Internet. E-Business is still at its infancy and guest who is leading that revolution? Timing is Key: They (those so call experts) always say (Don't try to time the Market) for me that's garbage. Don?t buy a stock that's extended or still correcting. Wait until it shoots out of solid base for a few weeks.

Once you buy a top rank company and the stock goes down as part of a general market correction, this the time to buy more. Oracle Corporation had a temporary downturn. FISE kept buying more shares at the lower prices and now we have a return of about 700%. Time is your friend. Patience will always let you buy at dips. Invest for the long term and it will reward you with great return. Diversified your Portfolio: We invested in 13 companies that are in 12 different industries. Buy the stocks in our portfolio and your return will beat the DOW, S&P and even the mighty NASDAQ. That's Confidence!!!!.

Practical Buy / Sell Guide

Value Line suggest this approach using their Timeliness ranking system.

1. Check each stock you presently own against Value Line's Timeliness ranks.

2. Hold on to any stocks currently ranked 1 or 2, but get rid of stocks ranked 4 or5.

3. Replenish your portfolio with stocks ranked 1 (or at least 2) for timelisness.

4. Then, for ongoing maintenance, whenever any of your stocks fall from 1 or 2 to a rank of 4 or lower, replace it promptly with a higher-ranked stock.