Wednesday, August 31, 2011

Fast Moving Investing

Market is made up by a group of greedy investors & buy simply because they believe the stock will go higher..higher and higher..
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?

  1. 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.
  2. 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.
  3. Have earning surprise history that beat estimates.
  4. Positive insider & institution ownership. Insider & institution investor buy & keep their share.
  5. Strong Sales Growth & HIGH ROE > 15%.
  6. 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..
  7. 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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