How Do You Select High Performance Stock?
It is best to avoid the crowd mentality in selecting high performance but safe stocks. There is a lot of wisdom and truth in that old adage “buy on the rumor and sell on the news”. But the secret to smart investing is to find a usually reliable source for high quality rumors. The best place to look for hints and quality rumors is in the financial media. Look for the news of the announcement of new products, transactions or deals. But most often, when these announcements are made public, the market has already priced in the appropriate increase in the value of the relevant stocks. That process will have started with the initial rumors pertaining to the deals that are now being made public. Therefore you, the smart investor, will have to find a new set of rumors to act upon. For example, suppose that a wind turbine manufacturer announced the completion of a deal to sell a substantial number of wind turbines to an electric utility. But even if the announcement, as most likely will be the
