Henry & Chad

Updated:
03.13.09
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Description:

10% is a great gain, don't blow it//// Set stops behind 10 to 20% gains to protect profits.///Do nothing without checking your notes on STOCKPICKr/////Lack of Catalysts:
Companies and stocks need catalysts in order to advance. If a company doesn't have new products on the horizon or expect to show earnings growth or momentum of some kind,consider avoiding it.
/////NEVER NEVER BUY OFF HOURS!! DONT HOLD TECH BETWN MID FEB & AUG (European slowdown)
You should be looking for companies with good sustainable dividends, share buybacks and catalysts that can drive stocks higher.///// Momentum = increasing earnings est. /////Work to GET OUT OF MARGIN ACCOUNT INTO CASH ACCOUNT!!! and trim to 5 positions by the middle of 08'/////Henry thinks we should stick to LRG CAPS with growth potential.///// Look to sell any strength in tech to raise cash and cut back on exporsue to that sector./////ON PULL BACKS DIVERSIFY WITH RETAIL, BANK, GOLD, WATER, OIL SERVICES and DIVERSIFIED FOREIGN HOLDINGS. /////Zweig suggests that companies have a price-to-earnings ratio of at least 5â€"to weed out weak companiesâ€"but no more than three times the current market p/e or 43, whichever is lower. His strategy makes sense for investors who like the potential of growth companies but aren't willing to pay premium prices for them./////Founders of the popular Motley Fool site on the Web, the Gardners, specialize in searching out stocks of small, fast-growing companies with solid fundamentals, including healthy profit margins, little debt, ample cash flow, respectable R&D budgets and tight inventory controls. A key indicator of a strong stock, they believe, is one for which the company's earnings growth rate is greater than its price-to-earnings ratio. Wall Street calls this metric the PEG ratio (price/earnings-to-growth ratio); the Gardners call it the Fool Ratio. By either name, it's a great way to separate attractively valued growth stocks from those that are overvalued. The Motley Fool investment strategy will appeal to investors seeking solid growth companies in the small-cap sector of the market./////PEG ratio results greater than 1 suggest one of the following:

The market's expectation of growth is higher than consensus estimates. OR
The stock is currently overvalued due to heightened demand for shares.
/////PEG ratio results of less than 1 suggest one of the following:

Markets are underestimating growth and the stock is undervalued. OR
Analysts' consensus estimates are currently set too low.