what stocks are good to invest in
Although some people are incredibly bearish on everything right now, some of us see opportunities everywhere we look. Emerging markets are a great idea right now for long term investors. The valuations are simply mouth-watering in China, Japan, Russia, Brazil and many other emerging markets. I’m looking for commodity based stocks, with little debt and strong cash flow…and I’m not the only one. Jim Rogers is famous for his disdain of 29 year old Maserati driving investment bankers. He does however, like 29 year old Maserati driving farmers! Jim loves farmland and thinks that Canada is a great place for any redundant stock broker to go to learn to drive a tractor. He thinks that this area will be one of the best performing asset classes over the next decade or so…people have to eat…right? I also love gold stocks. There are the big players, like gold corp and the smaller players like Silver Wheaton who have been hammered through forced selling. Both represent great value. However, the pre
First, the stock must have good fundamentals. For good ideas on searching for stocks with good fundamentals, look at William O’Neil’s book called “How to Make Money in Stocks.” This book combines fundamental analysis and technical analysis and teaches that the best thing to do is to use both strategies together. I am sure, you can find this book in libraries, and you may read it if you are interested. Next, screen for stocks with good technicals. I use Telechart to screen the 7000+ stocks in the universe, but there are also many good stock screens available online. From there I narrow the selection down to what I call myUniverse of Stocks to approximately 2500. This screen is based on… Price > $5 90 day Volume > 250,000 Capitalization > $100M From here I use multiple screens to narrow my selection down to several hundred by choosing for instance… Relative Strength >70 MoneyStream >70 Profit Margin in the upper 50th percentile Revenue Growth Earnings Growth PEG < 1.5 Once I have my
