Comments on: How do I invest in these stocks and find them? HELP? http://pennystockspick.org/how-do-i-invest-in-these-stocks-and-find-them-help/ Penny Stocks Pick Thu, 03 Nov 2011 05:11:37 +0000 hourly 1 http://wordpress.org/?v=3.2.1 By: financegal27 http://pennystockspick.org/how-do-i-invest-in-these-stocks-and-find-them-help/#comment-5869 financegal27 Fri, 02 Jul 2010 11:06:04 +0000 http://pennystockspick.org/how-do-i-invest-in-these-stocks-and-find-them-help#comment-5869 Well there is a couple of problems using this stock as the basis for your thesis. DDRX was added to the Russell 2000 Index in June which means all index and ETF funds that replicate the index would have had to buy it to properly replicate the index returns which means the stock would go up on that news alone. The stock really jumped in April which corresponds with the first period they reported an operating profit in their history, a profit that equates to 25 cents a share which is substantial considering the stock was trading at 49 cents at the time. It is benefiting from the growth in Green Mountain Coffee which has experienced exponential growth as it was recently chosen by McDonald's as its exclusive coffee maker. http://www.fool.com/investing/general/2009/07/09/4-winners-that-will-be-losers.aspx The key to testing a model like you are describing is testing it on a number of different stocks that fall into the screen and ensuring that the model works in more than just one situation. DDRX is a small cap stock that is closely tied to another company and is benefiting from that relationship, that is a great fundamental story, but its not a statistically significant one. Its easy to pick a stock like this and apply your thesis and say "see it worked" but the fact is that this isn't a normal case. Well there is a couple of problems using this stock as the basis for your thesis. DDRX was added to the Russell 2000 Index in June which means all index and ETF funds that replicate the index would have had to buy it to properly replicate the index returns which means the stock would go up on that news alone. The stock really jumped in April which corresponds with the first period they reported an operating profit in their history, a profit that equates to 25 cents a share which is substantial considering the stock was trading at 49 cents at the time. It is benefiting from the growth in Green Mountain Coffee which has experienced exponential growth as it was recently chosen by McDonald’s as its exclusive coffee maker.
http://www.fool.com/investing/general/2009/07/09/4-winners-that-will-be-losers.aspx

The key to testing a model like you are describing is testing it on a number of different stocks that fall into the screen and ensuring that the model works in more than just one situation. DDRX is a small cap stock that is closely tied to another company and is benefiting from that relationship, that is a great fundamental story, but its not a statistically significant one. Its easy to pick a stock like this and apply your thesis and say “see it worked” but the fact is that this isn’t a normal case.

]]> By: Professor Wonderful http://pennystockspick.org/how-do-i-invest-in-these-stocks-and-find-them-help/#comment-5868 Professor Wonderful Fri, 02 Jul 2010 10:25:50 +0000 http://pennystockspick.org/how-do-i-invest-in-these-stocks-and-find-them-help#comment-5868 Golly, if you develop the software, let me know the price. My clients can buy it from you in a heartbeat. Heck, I would like to consider buying your software. Golly, if you develop the software, let me know the price.

My clients can buy it from you in a heartbeat.

Heck, I would like to consider buying your software.

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