Low Priced Stocks!
4/20/2007
Imagine owning a stock at $4 that jumps to $24 in just
a few weeks. The mass psychology that permits this
to happen is present now. Folks see the dollar going
down day after day. They naturally want to buy stocks
to fight this trend. And when the market goes up 48 months
in a row, as it has now, without even a 10% correction in the
Dow Jones Industrial Average, their confidence in the
market rises to the point where they are ready to buy low-
priced stocks.
TigerSoft's Power-Ranker easily lets you sort through
all stocks under $5 to find the most bullish situations.
The software scans, among many conditions, for stocks
breaking out of narrow price ranges that have lasted a year
for days when the volume is the highest in a year. We know
this works well because we have been doing it for 25 years.
And at any point, you can test the proposition by seeing the
setups for all stocks up say 75% in the last month. These
high volume occurrences have a very high success rate
when there are Tiger major Buys present. When the daily
price bar appears in red, the Tiger chart is showing you that
there is inusual volume on that day. Look at the chart of
San Diego company TNXI below to see how this looks.
Not all markets are equally propitious for such runs. The market
in 2007 is clearly such a market. As there has not been a 10%
decline in the DJI for more than 46 months, speculators are gaining
the needed confidence to run-up the low-priced "Cats and Dogs".
Look at the example of VPF below. It also showed steady Big-Money,
Insider-Informed Accumulation for most of the entire year before
the breakout. Interestingly, insiders are taking profits quickly
now that the stock has jumped 75% from the point of breakout.
Even bigger gains were made in DNDN in March and April 2007. In this case it
would have paid handsomely to buy the stock on the day after the biggest volume
day in a year, when the stock was up. That would have meant buying at 4.54, Within
two weeks the stock was had risen above 24, a gain of nearly 400%.
Low Priced Stocks Should Be Traded with the Tiger Power-Ranker
We provide the data on 450-475 low priced stocks each night. Download this
data easily from us and then run the Tiger-Power-Ranker to find stocks that meet
these conditions.
November 8, 2003
Low priced stocks are difficult for most traders because
these stocks spend most of their time moving in small smounts.
They often build price-bases for years before making their moves.
You have to know when they are ripe to advance. Otherwise,
you will almost certainly sell these stocks prematurely, simply
out of frustration because they are not participating in what you
take to be a good market.
After a bear market, like that of 2000-2003, low priced stocks are more
plentiful. Many of these are huge bargains. In a year or two of rising
prices some may be up many hundred percent. Others remain unloved
and out of favor for years.
The challenges are to:
(1) know when the bear market is over,
(2) have cash available to buy these low-priced stocks
(Most will not be marginable,)
(3) know which stocks show the most accumulation.
(4) know when to buy just before or as prices come alive.
The NASDAQ-Peerless Software will tell you when the market is
safe. And the Tiger B12 and B10 and B24 signals work very, very well in this
climate to tell you when a stock is ready to move up dramatically.
Read my Explosive Super Stocks. Its concepts apply perfectly at this time.
Here are a few examples. But you can see them on your
computer by just getting our software and running the Nightly
Analysis program and then looking for the new major BUYS.
You can see that they occur many times in each year. So, it is a matter
of looking for them wity the right tools and being ready to jump aboard
quickly when one is found.
