Julia Cossé, well immersed in the family securities business, Cossé International, spoke on the subject of “How to Pick Stocks that Go UP”.
An exhaustive study, identifying stocks that doubled within six months, found a certain commonality among them. From the results of this have evolved principles to guide one in choosing such companies.
To wit, look for:
- Increase in earnings of the stock’s underlying company to have increased.
- Moreover, the earnings’ increase has accelerated, preferably into double digits.
- The accelerated increase should be due to something, i.e. a new product.
Example: Microsoft’s periodic new devices to meet demand. - The industry that includes the company has been doing well as a group.
- Volume. Institutional investors, as contrasted to individuals, create volume changes. Therefore, increased upside volume is a good indicator.
- Medium-sized companies. These have good growth potential. Very large companies have already seen growth. Small companies’ stock may be hard to exit at the right time.
- Pay attention to what kind of market we are in.
Comment: Be thus guided and you cannot lose. Maybe