Here is the example I spoke of: Total Return: 158% 2000 Return: 15% Criteria for selection: 1. Personal knowledge in the energy industry 2. Down Industry: Oil Services 3. Oil prices at record lows. No replacement in sight. 4. Leading companies in late 1998: FGII, WFT (originally EVI), VRC, RIG, RON 5. Financial weeding then price support analysis as follows: STOCK High Low 9/10 % increase Avg 7/7 1sr support level Potential to 1st Support Max support (goal) over low FGII 48 10.25 14 5/16 5.5% 26.6 25 - 28 +10 67% 39 WFT 73 15 20 7/8 13.6% 34.2 35 +14 71% 47 VRC 34 7 1/8 10 1/8 13.3% 18.5 14 - 17 +4 14% 24 RIG 60.5 23 28 3/4 4.5% 42 42 +13 45% 48 RON 81 3/4 20 1/8 30 12.9% 48 52 +22 73% 71 It came down to 3 and further financials weeded out RON. Then WFT was chosen for the most potential. Using AIM below kept emotions out of the game and a successful investment play. A split off company Grant Predico was received early 2000. This caused the acceleration of the stock along with fast increase in oil prices. After the spinoff, this changed the fundamentals used to establish this investment. An unknown company and management caused too much indecision and I reviewed the goals at that time. Oil prices were also back to high levels. It reached the goal height of 47 again and I exited |
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