Grow Thread advfn2 Apr 2013 07:28
I have been monitoring a number of stocks over the past few months, and have applied certain criteria to their performances since Q3 of 2012.
Disclaimer: Before I begin, I would like to make it clear that these are my views, and mine only. I have researched these stocks and have come to the conclusion that these five offer investors an excellent chance of multiplying their investments up to a 5-bag. At the end of each commentary, I give my own forecast as to where I think the share price could reach within a 3-year time frame, ie the end of 2015.
As always, please do your own research and come to your own conclusions.
The criteria applied here are:
1. Price performance on high volume and low volume days. High volume days for some stocks, are of course much much lower than others. Penny stocks, whilst offering the most growth opportunities, also offer the most risk, but their trading volumes are usually judged in the millions as opposed to the hundreds or thousands of higher priced stocks. I have taken this into account when applying ratings.
2. Chart performance. Fundamental analysis of the stock price using charts. Whilst charting is not a "foolproof method", it can be useful in trying to gauge future movements in share prices.
3. Any holdings by directors. These I always deem important to a company's future outlook. By definition, support from directors usually indicates a positive scenario going forward for the company, although this isn't always necessarily correct.
4. Growth prospects and indication of earnings increases. Particularly important when taken together. A company can quite easily have sound prospects of future growth, but not necessarily at the same time as earnings increase. There may be tax losses to carry forward and earnings could be subdued at the same time as the company is putting into place policies to ensure future growth, so in some cases, a time-lag before actual growth emerges could be evident.
In addition to the above, just general market and investor interest, (not least of all sensible comment on boards such as ADVFN), can be used as a useful pointer to any future movement in the share price.
The five shares listed below, are not in any order of merit or growth prospects. I have noted that the most successful threads on investor boards are usually the ones where the host leaves other investors to discuss and debate, within sensible parameters, but I will be monitoring this thread for any deviation from the stocks listed below.
As a multi-stock thread I hope all readers find it useful, as it will naturally attract investors in the shares listed and hopefully will promote lively and stimulating debate, and introduce holders of one stock to the possible attractions of the others.
3. MEDIA CORPORATION (LSE: MDC) 0.17p.
A classic "speculative punt". Over the years they have bounced to hell and back, and the price performance has ranged from around 3p down to 0.04p.
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