If a stock triggers one of our sell rules, then it will be removed from our newsletter until it once again approaches a sound technical area for buying. If a stock fails to reach our buy point after several weeks, then it may also be removed from the newsletter. Finally, if a stock underperforms the general market and other stocks, then it may be removed.
Each week, we evaluate all stocks that started trading within the past 12 months. Then, we screen for the very best fundamentals, such as high earnings growth, high stock price, high daily trading volume, etc. Once we have a list of the stocks with the best fundamentals, we screen the chart of each stock to narrow the list down even further. We look for constructive chart patterns that have a high probability of producing big gains. Finally, we research the companies to find out what is driving their recent growth. Our subscribers can bypass all of this research by just reading our newsletter twice a week and then deciding which stocks to buy or sell.
Our newsletter is extremely focused so that subscribers do not need to spend a lot of time researching stocks before deciding to buy or sell them. Therefore, our newsletter contains approximately five stocks at any given time.
Our strategy is to keep holding stocks that are performing well, unless they trigger a sell rule. Therefore, we do not simply sell stocks because they reach an arbitrary price target or percent return. Our historical performance can be found here.
Recent IPOs can significantly outperform the general market and the stocks of companies that are more widely followed. By screening for the very best recent IPOs in terms of fundamentals and technicals, we can place our money at a high probability for growth. Since recent IPOs are not as widely followed as more established large cap stocks, they present an opportunity for individual investors to purchase them before they make an appreciable price move.