How they set up, run up, top and make you money
This is the book which I finished reading last night . It is basically another take on growth investing. Much of the book is rehash of CANSLIM method.
Here is a gist of the book.
- A monster stock is basically a stock that doubles in price in 4 to 18 months. Many of them will go up 3, 4 ,5 or 10 times plus in short time periods.
- If you want monster returns, you should know how to identify and handle the next monster stock.
- Book covers some monster stocks that appeared in last 10 years (1997-2007)
- Monster stocks are growth companies, most trade on Nasdaq, have new and innovative products and above average earnings and sales growth . When they catch the attention of big money investors, the huge demand from these players leads to them making monster moves in short time frames.
- Each major up move in overall market leads to emergence of such monster stocks.
- Eventually all such stocks top and often the top in such stocks coincides with new downturn in overall market.
Recognize a monster stock at right time, sit with it for right amount of time and then sell it at correct time. That in short is the way to monster returns.
"It only takes a few monster stock, if you handle them correctly, to improve your life financially" Jim Roppel.