A 'new' Strategy that i've found (i think this will get recs) BUY WNR
This is not really very new, but it's ease of implementation is new to me.
So we are benchmarking to the S/P, but our Limit Orders are in dollars. We have the charts that show comparison for day/week/month/year/etc, but if you want info from specific moments, it's clumsy.
Go to Yahoo, and type in the stock you are researching. Go to the 1 year chart (for example) and use the comparison tab at the top of the chart to compare to the S/P.
Place your mouse/pointer over the chart, and you will see a little blue ball that tracks along the timeline as you mouse around. Place the dot on the lowest point the stock was at vs the S/P. This is sometimes hard to discern, because the lines are going all over the place, so start somewhere near the left.
Look at the top of the chart and read the date.
At the bottom of the chart is a subchart. There is a date box, and a set of arrows. Type the date in question into the box, and hit enter.
Re-evaluate the chart, and see if there is an even lower point for your stock vs the S/P. Discern the date, and enter you date again (as many times as needed to get where you want).
This will tell you what the percent amount of difference your stock is from it's lowest point within your original timeframe.
This might be useful to the patient for picking entry points.
Yes i know that this has little to do with stocks that are never coming down, or with stocks that are never coming back up, but when added to your other research it may help setting long wait limits.
In this method you will sometimes not get the stock you want, but if you are fairly certain that a stock is an eventual winner, it may help with entry points, especially on high beta stocks with a lot of price swing.
Yes, it's rather basic, but it's the easiest tool i've found for tracking this specific info. If there is another big crash within the next few years i will be using it to position some of my high beta, high growth potential picks.
For instance MWA hit a low vs the S/P March 9th 09, then hit the same spot on June 8th. And it looks like it may do so again in the next (theoretical) down.
Now i believe water is a great long term investment, and that a company the size of MWA has both enough size to dominate smaller competitors, and large enough to compete with the larger competitors. Yet it's small enough to have huge growth in the future.
The chart shows that it has fluctuated as much as 60%-100% above the S/P in the last few months, and it's near unanimous 528/10 All-Star outperform is a fairly good indicator that it's not junk.
According to this technique, which allows me to easily find and then set the LOWEST point that a stock has seen vs the S/P WNR hit it's lowest point on May 15th 08, then again on 8/5/08, then AGAIN on 10/24/08. Each time it rebounded for between 60% and 140%. And it now sits at only 7% above its low comparison to benchmark.
There's my call folks. I think WNR is a great buy NOW and will not likely fall more than 7-10% before rocketing to a 50%-150% within the next two years. By the way, it is GMX's pick for AllStarPortfolio.
Now, i'm no rocket scientist, but armed with caps, GMX and AllStarPortfolio, i think now is a buy for WNR.
This is my first strong buy call in my caps career.