Monster Stocks By John Boik
Monster Stocks
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.
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22 comments:
In reading that last quote, it reminds me of the adage, buy low and sell high. So this book seems to offer nothing. Was there anything unique you obtained from this book? Buying growth stocks is such a novel concept. I like the part about buying stock of growth companies with innovative products. Like the Ipod? (AAPL) or Blackberry (RIMM). I recommend you ebay the book to at least limit the waste of money; sad you cannot reclaim the waste of time you must have experienced with this read.
Monster stocks are growth companies, most trade on Nasdaq, have new and innovative products and above average earnings and sales growth
Could the author have been any less specific. This probably narrows down the stocks of choices to many hundreds-so how does one go about finding this "monster stock"?
I think as one of the Market Wizard said, even a bad book has some good things to learn from. It is ok book, nothing new. Part of the problem is the author writes a book a year or so, so lot of it is a hack job.
Superperformance Stocks by Richard Love is the best book on finding monster stocks. It lays out a logical method to identify such stocks.
http://www.amazon.com/Superperformance-stocks-investment-individual-political/dp/0138761515
super performance stocks book selling on amazon for only $259
now i have to first find a monster stock to be able to afford to buy the book which will tell me how to find that monster stock...
Does this book have a list of stocks throughout history and the accompanying variables (earnings growth, etc)?
Wish there was a way to obtain the The Greatest Stock Market Winners that William O'Neil published.
Tim, Contact DGO directly for "Forty Great Stock Market Winners that William O'Neil published."
DGO has this list and charts?
No. This was a publication sent to DGO printed edition subscriber some years back, to the best of my knowledge.
I have the 40 Greatest Stocks that DGO published. Now only need the other 460 O'Neil always talks about.
I've been collecting DG charts of past big winners. Have 140 so far.
if you have enough interested people here, we can make assignments and collate this collection.
I'm game.
I will look at posting a spreadsheet of charts (Daily Graphs) I have and ones I am looking for. My goal is to build a database of their key criteria to establish historical models (like O'Neil & Minervini).
If you start building a database of stocks up say 300% plus in a year, over a year you will get a good idea of what factors contribute to a stock making a big move.
We'll see if this works. Link below is list of top stocks since 1978 with date of base setup. I have been collecting the Daily Graphs page and goal is to obtain all. Then I'll be entering data into spreadsheet (2nd link). 3rd link is an image of 2 of the ones I already have (CSCO & APSO). By the way, you'll see that CSCO and APSO formed very similar patterns nearly 2 years apart.
List of stocks
http://spreadsheets.google.com/ccc?key=plA80N9X4VmwvBl9boxjwXg&hl=en
Data sheet
http://spreadsheets.google.com/ccc?key=plA80N9X4VmztOiGvqH7lJg&hl=en
Image of CSCO & APSO
http://www.geocities.com/tsisung/scan0001.tif
Maybe this can be a joint effort to build a database of top stocks data and setups.
I'm sure there are many stocks I missed. Stocks in my list appreciated 100%+ after their breakout or moved 70-99% in a very quick time. If you know of others, feel free to add to the sheet (or if you know the date of the setup or symbol). ? after symbol means I am unsure if that is the correct symbol. ? after name means I am unsure if the stock produced a move worthy of the list. ? after the date means I am unsure of the exact setup date (month/year).
Your feedback is appreciated.
Tim
If there is a way to get historic charts, (free) I'm happy to try to get them and share.
I get mine from the local university library.
How? (I hate to sound naive) but what service? digital? hard copies?
Thanks
The library at the local university has hard copies. I photo copy the modules prior to the breakout and add info into my spreadsheet.
Tim
thanks for the CISCO chart
is it possible to post other charts of past market winners?
I do have more. If I am able to scan them I will post the link here.
Thanks Tim
would be really appreciated
okay, I found on Bigcharts.com that you can create a "custom" time period to look at a chart.
If you know the exact breakout dates, you can reconstruct the chart on this website.
On bigcharts.com you can create custom time periods to review charts. So if you know the dates of the breakouts, you can zoom in on the charts.
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