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Tuscaloosa IBD Meeting #9

March 21, 2013. Tuscaloosa IBD Meeting #9. Meeting Rules. 1. Ask questions, there are no stupid questions. 2. We meet Monthly, the 4 th Monday evening 6:30pm until 8:30pm. Mini meetups will be scheduled when possible. 3. Invite people who are interested in investing in stocks.

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Tuscaloosa IBD Meeting #9

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  1. March 21, 2013 Tuscaloosa IBDMeeting #9

  2. Meeting Rules • 1. Ask questions, there are no stupid questions. • 2. We meet Monthly, the 4th Monday evening 6:30pm until 8:30pm. Mini meetups will be scheduled when possible. • 3. Invite people who are interested in investing in stocks. • 4. No one is here to make money off another person, only to improve our investing skills. • 5. The main subject will be “CAN SLIM” at every meeting.

  3. Tuscaloosa IBD is Part of Meetup

  4. Meeting Format • Market Health • CAN SLIM • Portfolio Management Training • Stock Review

  5. Market Health

  6. NASDAQ 3-20-2013

  7. S&P 500 3-20-2013

  8. DOW Jones3-20-2013

  9. IBD Mutual Fund Index 3-20-13

  10. Industry Groups 3-20-2013

  11. Industry Groups 3-20-2013

  12. Market Pulse 3-20-2013

  13. Market Lengths

  14. Market Lengths

  15. Super Cycle

  16. Accumulation/DistributionCount

  17. What Progress have we made? • FTD – March 5, 2013 • NASDAQ up 0.93% • S&P 500 up 1.24% • NYSE up 1.15% • DJIA up 1.81%

  18. IBD Market Wrap

  19. CAN SLIM

  20. CAN SLIM - 7 Traits • C=Current Earnings (25% Min.) • A=Annual Earnings (25% Min.) • N=New (Products) • S=Supply and Demand (Demand) • L=Leader (tops in its Group) • I=Institutional Sponsorship (Mutual Funds) • M=Market Direction (Going Up)

  21. CAN SLIM • C = Current Big or Accelerating Quarterly Earnings and Sales per Share

  22. CAN SLIM • A = Annual Earnings Increases: Look for Big Growth

  23. CAN SLIM • N = New • Newer Companies, New Products, New Management, New High off properly formed chart bases

  24. CAN SLIM • New • Northern Pacific RR – First Transcontinental Railroad – 1900’s up 4,000% • RCA - Commercial Radio – 1926 to 1929 up 1,050% • McDonalds – Cheap Hamburgers – 1967 to 1971 up 1,100% • Microsoft – Windows – 1993 to 1999 up 1,800% • See HTMMIS Pages 172 -173 green book

  25. CAN SLIM • New • Where do I find New? • New America Section of IBD • Industry Snapshot on Mondays • New High List • Shopping Mall • Google

  26. CAN SLIM • New • 3-D Printing • Graphene • https://www.youtube.com/embed/Q_eTLPKdrHs

  27. CAN SLIM • S = Supply and Demand • How is available vs. How many people want it. • Supply and Demand is more important than opinions.

  28. CAN SLIM • Stock with 50 million outstanding shares moves quicker up or down than…… • Stock with 5 billion outstanding shares moves slowly up or down

  29. CAN SLIM • Outstanding Shares – Total shares issued and that are in the publics hands. • Floating Supply – Number of shares in the publics hands and available for trading.

  30. CAN SLIM • Look for companies with young and innovative management. • Big companies with old management moves sloooooow!

  31. CAN SLIM • Watch for companies with large stock splits and split often • 2 for 1 and 3 for 2 OK • 3 for 1, 5 for 1, etc. Very Riskey

  32. CAN SLIM • Companies with Stock Repurchase Plans – Very Good. • Less stock – Higher price • Stocks with low Debt to Equity Ratio

  33. CAN SLIM • How to evaluate Supply and Demand • IBD’s stock tables show stocks trading volume for that day and the percent volume change the stock’s average daily volume in last 3 months.

  34. CAN SLIM

  35. CAN SLIM • Go to MarketSmith – Screens • Review C-Qtrly Earnings • ACC EPS Growth (Weekly) • Go to Stock Checkup • Review some of the stocks in the screens

  36. Portfolio Management Training

  37. Portfolio Management Training • How many stocks should I own? • Should I diversify? • How much money should I allocate to each stock? • What is weeding and feeding? • Should I use stops and limits? • Should I buy and sell at the Market price.

  38. Order Types • Market Order • Limit Order • Stop Order • Trailing Stop • Trade Triggers • Conditional Orders

  39. Market Order • A Market Order indicates you want the immediate execution of an order for a stated number of shares at the next available price without any other restrictions. This means your order will seek execution once it is received by the market (as long as the security is trading).

  40. Market Order • Reasons for Market Order • Price is less important • Quick entry/exit • Highly liquid securities

  41. Limit Order • A Limit Order indicates the highest price your are willing to pay for a security, or the lowest price your are willing to accept to sell a security. Your order will be executed at your designated price or better. This helps protect your order from sudden volatility, but it also means you will only buy or sell the security if it reaches the price you are seeking.

  42. Limit Order • Reason for a Limit Order: • When Price is most important • Target Entry/Exit Price

  43. Market Order vs. Limit Order

  44. Market Order vs. Limit Order

  45. Stop Order • Stop Market Order is an order which becomes a market order once the activation (or stop) price you specified has been reached or surpassed. Buy-stop market orders require you to enter an activation price above the current ask price. Sellers must enter the activation price below the current bid price.

  46. Stop Order • Stop Orders can help you to limit your potential loss in an investment or to lock in profits. By setting an activation price below the market, if you are selling, you may be able to limit a potential loss should the stock price fall.

  47. Stop Order • Stop Limit allows you to enter two prices: an activation (stop) price as well as a limit price. The activation and limit prices can be the same or you can choose a different limit price. A stop limit order becomes a limit order once the activation price has been reached or surpassed. When choosing a stop limit, buyers must enter an activation price above the ask price. Seller must enter an activation price below the current bid price.

  48. Stocks for review

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