I have been writing and evaluating a bunch of stock screening routines. There are lots of sites out there that will tell you to buy a stock because it has gone up 200%. That might be a great suggestion, but I would like to know about that stock BEFORE it goes up 200%. That way I can get the biggest benefit. So I have written a stock screener called “Bottom Feeders”. The idea is to find stocks that have been down for a while, but are ready to start moving back up (Buy low, Sell high) I have been monitoring Bottom Feeders for about 8 months now. It is running between 38% and 65% accurate after a week. I am trying to also monitor them a month later but, there are only so many hours in a day.
This is the first time I will be presenting results from that scan. By the way I use Stockcharts.com Pro version for the scans. I have been with Stockcharts for over 12 years. For you beginers they offer some decent charting for free. They also offer Chart School where you can learn about the different types of indicators. I would, and don’t, buy or sell a stock without using the information on Stockcharts.com. If you really want to be successful in the market, you better use charts. I could not recommend a better site. They also allow you to write your own screeners. (They supply lots as well.)
I will show a chart that has the stock symbol, company, the closing price, and the cost for 1000 shares. I picked 1000 because that is an easy number, and if you buy 1000 shares your commission per share is pretty small. The “week later” column will be empty. But (I will try) to post with that filled in a week later, so you can judge the result. I also have a “My Guess” column. I will add whether I think the price will be the same (FLAT), Higher (UP), or Lower (LO). THESE ARE NOT RECOMMENDATIONS!!!! JUST A WAY TO MAKE SURE I PUT NEW CONTENT ON MY SITE MORE OFTEN. You need to be the judge, if this is working, and you WILL investigate the results further for your self. That is why I am not using BUY, SELL, or HOLD terms.
I will only comment on the ones that I think might go up by explaining my reasons for the choice. So here goes.
Morien Resources is a Canadian company (all of them will be) that is in the mining and minerals game. They suspended their dividend in April to conseve cash. The reason I picked this one is that the Accumulation/Distribution indicator (along with some others) is moving strongly higher. It also has slightly better than average volume. They were at about $0.42 before the crash. That was also a long term price. So there is room for this one to go up. Next week we will find out if I am correct.
REMEMBER THIS IS NOT A RECOMMENDATION!! NO MATTER WHO THE INFORMATION COMES FROM, YOU NEED TO CONFRM THAT IT IS RIGHT FOR YOU. INVESTING INVOLVES RISK. LIKE LOOSING YOUR MONEY!!!! ALWAYS PRACTICE LIKE ITS REAL, FOR AT LEAST 1 YEAR BEFORE EVERY USING REAL MONEY.