People are talking about the stock everyday, they monitor closely & trade regularly and heavily
We can use the scenario here to go or against it in a fast moving trend environment.
How do we identify a fast growth company & take advantage to invest? How to identify such business?
- Identify great business, buy them when they are highly rated by the market(stock being above its intrinsic value), it move within the sector/ industry rotation. Invest when it is a high performing sector/ industry.
- Strong earnings growth & high analysis rating. it can measure by looking at their positive & accelerating earnings growth that more than 15% over the past 3-5 years. The forecast from the analyst is higher than major index like S&P, DJI, KLCE, SGX..etc depends which country's stock exchange.
- Have earning surprise history that beat estimates.
- Positive insider & institution ownership. Insider & institution investor buy & keep their share.
- Strong Sales Growth & HIGH ROE > 15%.
- Bullish market sentiment. Check on market is bullish or bearish. easily check on DJI, S&P to measure the health of the market. Compare long term & short term trend bull. If both bull, buy in..
- Technical analysis, buy when stock near to buy point. Consolidation or wait for the price break-out. Check against the volume as well.
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