I love going to trade shows. I have a lot of fun working with the crowds surrounding our booth. I shock them by saying they can become stock market wizards in just a few minutes. Typically, nobody says a word, but their eyes get larger. Then I ask if someone would like to give me a stock to analyze.

Given the name or ticker symbol of the stock, I find it in Stock Viewer. Stock Viewer is a daunting screen for most people, so I carefully begin to explain the column headings, going from left to right. The first critical moment comes when we compare Price to Value. Most of the audience has never seen a stock's intrinsic value before, so I quickly explain what it is and why it's important to know.

Next, I go on to explain RV, RS and RT. I ask my listeners not to worry...all they need to know at this point is that a number above 1.00 is good and a number less than 1.00 is bad. Besides, all of these terms are explained in our Stock Analysis reports, which I show them. Finally, VST ties it all together, the higher the better!

Next, we look at the Comfort Index, CI. (In my computer I have CI placed right beside VST.) I use CI to describe what the stock's price performance has been like for the past year. It blows their minds when they see a graph showing exactly what I described. I explain that we prefer to own stocks with smooth patterns of rising prices, as reflected by high CI values, instead of stocks with wild, up and down price patterns and low CI's. I believe a stock's price pattern is like its DNA...its past behavior reveals what you should expect in the future. Once my listeners learn this bit of wisdom, they are well on their way to knowing how to pick winners from losers.

Finally, we take a test with another stock. Is Price above or below Value? Is the long-term price appreciation potential favorable or unfavorable? Does the company have a consistent, predictable financial track record? Is the stock's price trending higher or lower? Is the stock rated a Buy, Sell or Hold? As we answer these questions, the crowd begins to realize that they can learn a whole lot about a stock in just a matter of a few seconds...even if they had never heard of it before. They have become Stock Market Wizards.

VECTORVEST 101.
Mr. Steve Chappell gives us an elegant "Strategy of the Week" presentation this week which is remarkable for its simplicity and power. Everyone should see it. Visit the VectorVest University to see "VectorVest 101."