How to Make Money in Stocks Part 2

A ANNUAL EARNINGS INCREASE

The annual growth should be increase about 25% or more, per year for the last 4 years. In fact companies which have good stability of annual growth, mostly their stocks show slow growth. If The Market situation go down or BEARISH, the company’s stock will not go down fast and stay stabile. Example: Bank Central Asia and Unilever Stock in 2008.

PER (Price to Earnings Ratio) is use to find stocks is undervalued (Buy) and overvalued (Sell). But not crucial as EPS (Earning Per Share). The Company which have good EPS good Annual report, mostly have very bad PER. Do not buy A Stock because PER looks very low, it can be cheaper. EPS and Annual Report are The Best. Looks this chart, Click picture to ZOOM :

N NEW PRODUCT, NEW MANAGEMENT, NEW HIGH

This can be new product, new service, new Top management, new building’s decoration, new company name, new symbol, new technology, or anything new. It can cause to increase profit rapidly. Like Apple Company, The CEO, Steve Jobs make new innovation every year or he said ”Every Day”! Google make new products, like Google earth or buy another company, Microsoft also do so!!

What is new HIGH??? When stocks reach new high price it can go more high, while the other stocks declined!! The Best new HIGH PRICE built after ten or more week consolidation or I said “Sideways or Cup”!!