by Dr. Bart DiLiddo
Friday, 06/06/2008
Are you getting tired of watching all those high priced stocks you can't afford to own go higher and higher? Yeah, so Potash is up another $1.77 and pushing $221/share. So what am I going to buy with a thousand bucks? Four shares?
Never fear. VectorVest is here. Low-priced stocks -- we love 'em. Just take a look at this week's Strategy of the Week: Teeny Boppers. This is a great strategy -- one of my favorites, actually. It's been around a long time and has worked well over many years. Glenn Tompkins will show us how they're doing in the current market. Just visit the VectorVest University.
I've made some remarkable discoveries with this strategy. Read my essay of 01/17/03 and see what I mean. I suggested to my readers to take a look at SINA.com when it was at $9.37/share. It hit $42. I had discovered it with Teeny Boppers in July 2002 when it was under two bucks a share. Here's what I said in my 01/17/03 essay: "The biggest winning trade, a $1,415,445 gain, was made with a little stock called SINA.com. Take a look at its graph. It's a true Teeny Bopper."
The following week, 01/24/03, I posted the following notice:"ATTENTION TEENY BOPPERS FANS: Take a look at SOHU.com, (SOHU). I will be giving a brief presentation on last week's Overview at the San Diego Seminar." SOHU was at $9.75/share on 01/24/02 and it was on its way to $40.90. Just like SINA, Teeny Boppers found SOHU at a very low price, $1.70/share on June 28, 2002. So what was there to talk about at the San Diego Seminar?
First of all, you can find some incredible winners with Teeny Boppers. I've been doing it for years and can give numerous examples. Secondly, and very importantly, you can find some great winners even in the worst of markets. These guys have a life of their own. Take SINA and SOHU, for example. They were going up during the summer and fall of 2002 when the market was getting killed. So Teeny Boppers is a strategy you can run all the time. Thirdly, there are some secrets to picking the best stocks. The first and most important secret is to wait until the stock hits successive highs before buying it. SINA hit a new high five weeks in a row in July/August 2002. I believe Teeny Boppers found NutriSystems fifteen times as it broke out from $2 to above $5 in January 2005. Another important trick is to always favor nice smooth chart patterns. You want to see it flat-lining for a long time; then breaking out. SINA and SOHU are perfect examples of what I'm talking about.
Finally, I must say it's so easy to run Teeny Boppers with our current software. UniSearch does all the work. You just have run it once a week and remember the stocks with the repetitive new highs. Then pick the ones with the highest CI ratings. They have the best chart patterns. Do this and you'll have fun and you'll make money with Teeny Boppers.