Page 157 - How to Make Money in Stocks Trilogy

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1,660,000
980,000
580,000
340,000
200,000
Volume
Price
1.8
0.8
1.5
1.0
1.3
13
36
19
23
27
16
Mar 1992
2/1
Dec 1991
Sell: climax top
p
S&P 500
x
m
Sep 1991
S
Jun 1991
Buy
u
Mar 1991
Dec 1990
American Power Conversion increased 745% in 96 weeks.
3/1
Sep 1990
e Big volume demand
d
m
d
Jun 1990
g
Mar 1990
Big volume clue
Big volume clue
e
Note: angle of earnings line 11 e a a 9 on log chart accelerated in on log chart accelerated in e rate of change 7 6 e stock have more v h o s Hi-tech s e H Buy uy B 4.6 s s ks and shakeouts cks and shakeouts a a pullback pullback ullback pullba g b s Pullbac
m
Dec 1989
Sep 1989
5/4
Mar 1989 Jun 1989 Dec 1988
up:
American Power Conversion–1990 Fundamentals were great before stock made its huge run-up: Fundamentals were great before stock made its huge run f e 3 years of annual earnings nearly doubling each year o s a 100% Annual sales growth up over 100% v th o l Pre-tax margins at 26.9% s t5
c
Price = 20*eps Weekly Chart 1.80 1.45 1.35 1.25 1.15 1.05 0.97 0.88 0.78 e 0.68 0.63 r 0.57 l a A 0.51 a 0.46 n t R 0.41 0.36 0.31 0.26 0.23 0.20 0.18 0.15 0.14 0.13 0.11 0.11 0.10 0.09 0.08 0.07