Wednesday, March 16, 2016

Unlocking The Game: How to know if your stock has potential to EXPLODE !! one day?








Life as an investor in the stock market has been tough in the last few months, with stocks falling or not moving most of the times. Although you are very optimistic about their turnaround potential and believe that your stocks will deliver strong total returns moving forward, you are sometimes baffled as to why your stocks are not going up when your gut feelings and instincts suggest otherwise. 

If you are have this dilemma and thinking aloud whether to keep, buy more or sell off the stock you have, my short article below might be of help. 


How to know if your stock has potential to EXPLODE one day?




There are many many reasons why a stock will RALLY going forward and I am quoting the reasons based on my own trades to illustrate the points.

1. The stock has a bullish chart pattern. 
2. The financials of the stock improved from previous quarter by a large amount.
3. The stock is in a sector in play now.
4. The stock is a beneficiary of something eg . US$ increase, palm oil prices, tariff hikes, breakout of a disease etc.
5. The stock trading volumes are increasing.
6. The stock appear in a financial magazine or newspaper.
7. The stock appear in a blog or a forum and written by someone who can influence and push up the stock price.
8. The stock secured a big project.
9. The stock appear in a Facebook, WhatsApp or Telegram group as a tip.
10.The stock has a recent generous right issue with free warrants.
11. The stock has announce a bonus issue.
12. The stock is an election play.
13. The stock is increasing its dividends.
14. The stock has a low PE Ratio.
15. The stock proposed a generous special dividend.
16. The stock announced that a dynamic personality has bought a substantial stake in the company.

The 16 reasons I mentioned above are just the tip of the iceberg, there are many many other reasons a stock will rally ... but these are the major reasons I will look at to determine whether a stock has potential or not. So if you have a sleeping stock do not despair if you have a few things going on like the above. But a word of warning ... I am not God ...so be prepare to do your own due diligence when deciding to invest in a stock.


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