12/04/2007

A catalyst based aproach

This is a list of stocks up 25% or more on a month time frame. All the stocks were priced 5 or above at start of their move. There are 33 stocks currently in this list. When market is in confirmed rally mode the numbers is significantly higher ranging from 100 to 400.
One of the ways to improve your returns significantly is to try and identify few of these stocks at the beginning of such quick moves.If you can find 5-6 of them in a month, it can make a lot of difference to your account. For that one needs to study such stocks over a long period of time.
One of the ways to find such stocks is to use a catalyst based approach.
All such fast moves tend to have identifiable catalyst at start of their move. Catalyst based approach requires understanding of such catalyst and their ability to move stocks. That is a skill worth learning. Research has shown many catalysts have a shorter term predictive power on stock prices.


AFR,American Financial Realty Trus (Google  Yahoo  Earnings  Chart
AGO,Assured Guaranty Ltd (Google  Yahoo  Earnings  Chart
ALTH,Allos Therapeutics Inc. (Google  Yahoo  Earnings  Chart
CBK,Christopher & Banks Corp (Google  Yahoo  Earnings  Chart
CDTI,Clean Diesel Technologies Inc (Google  Yahoo  Earnings  Chart
CEL,Cellcom Israel LTD (Google  Yahoo  Earnings  Chart
CSIQ,Canadian Solar Inc (Google  Yahoo  Earnings  Chart
DIT,Amcon Distributing Co (Google  Yahoo  Earnings  Chart
DIVX,Divx Inc (Google  Yahoo  Earnings  Chart
DLB,Dolby Laboratories Inc (Google  Yahoo  Earnings  Chart
ENS,Enersys Inc (Google  Yahoo  Earnings  Chart
FSLR,First Solar Inc (Google  Yahoo  Earnings  Chart
GFLS,Greater Community Bancorp (Google  Yahoo  Earnings  Chart
GLYT,Genlyte Group Inc (Google  Yahoo  Earnings  Chart
JCG,J Crew Group Inc (Google  Yahoo  Earnings  Chart
LUNA,Luna Innovations Inc (Google  Yahoo  Earnings  Chart
MIPI,Molecular Insight Pharmaceuticals Inc. (Google  Yahoo  Earnings  Chart
MTG,Mgic Investments Corp (Google  Yahoo  Earnings  Chart
NBIX,Neurocrine Biosciences (Google  Yahoo  Earnings  Chart
PCLN,Priceline.com Inc (Google  Yahoo  Earnings  Chart
PSPT,Peoplesupport Inc (Google  Yahoo  Earnings  Chart
SEAC,Seachange Internat Inc (Google  Yahoo  Earnings  Chart
SOLF,Solarfun Power Holdings Co Ltd (Google  Yahoo  Earnings  Chart
STEC,Stec Inc (Google  Yahoo  Earnings  Chart
STP,Suntech Power Holdings Co Ltd (Google  Yahoo  Earnings  Chart
SYUT,Synutra International (Google  Yahoo  Earnings  Chart
TECUA,Tecumseh Products Cl A (Google  Yahoo  Earnings  Chart
TECUB,Tecumseh Products Cl B (Google  Yahoo  Earnings  Chart
TELOZ,Tel Offshore Trust (Google  Yahoo  Earnings  Chart
TGIC,Triad Guaranty Inc (Google  Yahoo  Earnings  Chart
USBE,US Bioenergy Corp (Google  Yahoo  Earnings  Chart
VVTV,Valuevision Media Inc Cl A (Google  Yahoo  Earnings  Chart
WCG,Wellcare Health Plans Inc (Google  Yahoo  Earnings  Chart


If you look at the same thing on downside , currently there are 206 stocks down 25% or more in a month. Just a few days ago this number was over 400. Tracking such stock moves on daily basis and building a model of what makes stock make such moves is what can prove rich dividends.Once you put sufficient effort in identifying such catalyst over the years, you become better at identifying such stocks at the start of a move.

Capturing 2-5 of such big moves on a regular basis on monthly time frame can make a vast difference to your returns.

No comments: