Page 118 - How to Make Money in Stocks Trilogy

America’s Greatest Stock-Picking Secrets 55

Price 80 70 60 50 40 34 30 26 22 19 16 14 12 10 8 7 6 4.5 3.8 3.2 Volume 80,000 40,000 20,000 © 2009 Investor’s Business Daily, Inc.

0 ce change Sep 1977
S&P 50 r e e c
s oses los Heavy increased volume s e i v without much further u t price progress versus s gr p e prior week’s price change p p p ’ w Big volume up p p e u v Jun 1977
Sell: heavy volume increase Sell: heavy volume increase n e u a S with stalling, lack of furthe f a g l w price progress price progress gre o p e p y Buy Buy Buy Buy u Note 3 weeks tight clos gh t k w N p 9 weeks up k e w in a row in a row H h w p p o p p
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Add - first pullback c l p to 10-week moving week moving n o w e e Buy Buy 9 n e n Bi p Volume up u m l e e Sep 1976 Jun 1976

n n o A 0 to 10 o average line a v - w e y-up in handle n h Mar 1976
n n Earnings acceleration Earnings acceleration e , % 46-week big cup-with-handle Note: volume v p p p dryp
Market correction c n At buy point in June 1976: At buy point in June 1976: u Pre-tax Margin was 29.6% w x Return on Equity was Return on Equity was y n 38.2% and last quarter q q earnings were up 189% p g e Big volume u u k on up week w Dec 1975 Sep 1975

Big volume

Mar 1975 Jun 1975 Dec 1974 Sea Containers increased 448% in 59 weeks.
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Leases marine cargo containers, Leases marine cargo containers n containerships, and related cranes l p on a worldwide basis. i Sep 1974 Jun 1974
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Mar 1974 Dec 1973
Sea Containers–1976 Weekly Chart Sep 1973 Jun 1973

Price = 20*eps 4.50 4.00 3.50 3.00 2.50 2.25 2.00 1.80 1.60 1.50 1.40 1.30 1.20 1.10 1.00 0.90 0.80 0.75 0.70 0.65 0.60 0.55 0.50 0.45 0.40 0.35 0.30 0.25 0.23 0.20 0.18 0.16 0.15