|Forum - Wall Street Pit
||Stock Due Diligence for All|
|From: Sqwii (Rep: 389)||Date: 05/10/2011 13:57|
|Forum: Wall Street Pit - Msg #2128342||Thread #673222936 (Rec: 0) |
|From what I have found out over the past years is that you can buy stocks which have the potential to be multibaggers in just 1-6 months and more than 100+% gains on these.|
Overall what I found out is that the stock is USUALLY a low floater, but again not always.
The thing is when a stock is a low floater , usually there is not much liquidity and therefore not much volume.
I've found out that stocks which have some good fundamentals based on book value, insider buys and others gives a good chance to be a multibagger.
USUALLY stocks which has been trading in a long term range (sideways OR downtrend) usually is the BIGGEST gainer if they start to get volume and moving up.
Lets take a look at a few examples.
Here are 3 examples.
FTK were trading near 1$ in 2010 and is currently at 9$ - thats 900% gains since last summer which is pretty impressive.
FTK have never been a big low floater - but the volume were not impressive either in that time. I remember that the fundamentals on FTK were quite good per book value and low market cap - which was a good sign. Others than that if we look at the technicals - FTK has been trading in a downtrend since 2009 or a so called channel down. You can also argue that FTK made a longer term inverse HS pattern on the daily charts in that timeframe.
The stock were trading between 1$-2.5$ in that range for a long time - suddendly it broke 2.5 with volume in november - which should be the first sign that the stock were about to go.
If we take a look at COOL.
COOL has been a fundamental good stock with great earnings - but had never been picked up really, COOL were really a low floater.
The stock were trading at 0.5$ in october 2010 and is now trading 3+ and were trading at 4+ recently. Thats also a nice multibagger - but how could you know it would run this much ?
Looking at the earnings and so COOL always made good earnings but were not picked up by big investors really.
From a technical view COOL has been trading in a long term downtrend too and based out in october to january this year. After this base around 0.5 - 0.8$ it began to break above 1+ with VOLUME again and that was the FIRST sign to get long 11th January
Again COOL were another example of a break of a long term downtrend for years or many months.....
The last one is SYMX which I remember were also a stock which people liked and were trading below cash value and book value at the time it was trading below 1$
Insiders have also been buying SYMX below 1$ which was a good sign
The technical view with SYMX was that it was trading in a LONG TERM CHANNEL or long term SIDEWAYS channel, since may 2009 from 0.75 to 1.25 range. What then happended was a breakout with VOLUME AGAIN above 1.25 4th March 2011. The highs is 4.5 which is another MULTIBAGGER and SYMX were also a low floater in that time.
So based on LOTS of those plays - what can we say about the COMMING MULTIBAGGERS for the future ?
From what I have learned - find a good quality low floater + based on book value , cash value and so it should at least be relative cheap. Its a big positive if insiders also been buying the stock.
Its a must that the stock has been trending in a long term downtrend or a long term sideways pattern for months - if you see the stock is moving up with SUDDENDLY BIG volume - dont sell , cause that may be the start of a monster run for 100-1000% gains.
Well thats just something I've experienced.
Started my own blog http://sqwiitrader.blogspot.com/
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