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America’s Greatest Stock-Picking Secrets 79

Price 70 60 50 40 34 30 26 22 19 16 14 12 10 8 7 6 5 4.0 3.4 3.0 2.6 Volume 12,000,000 7,000,000 4,000,000 2,000,000 © 2009 Investor’s Business Daily, Inc. Mar 1994
Tech stock built lots of bases f l u and had numerous pullbacks and had numerous pullbacks p e Dec 1993

Buy u k t n a
S&P 500 h T T d Sep 1993
Jun 1993
2/1
Mar 1993

Dec 1992

Market k M correction correction i e o Buy y p Volume up Sep 1992
V
Jun 1992
2/1
Mar 1992

Market a correction correction r gy y y Buy Volume up m Dec 1991 Cisco Systems increased 1602% in 169 weeks.

Cisco eventually topped in 2000 Cisco eventually topped in 2000 d a s with over a 75,000% move from m 7 t the intial buy point in 1990 t i i y l b ti i the Market t Mke correction c America leads the world in technology. w l Nothing is impossible and problems i py new opportunities.
0 0 m 1990 e r s Sep 1991 Jun 1991

Cisco Systems–1990 Weekly Chart Cisco at first buy had: y u o 33% Pre-tax Margins i M x 33% P % 36% Return on Equity 36% Return on Equity % 9 quarters of large EPS growth S f q 396% Sales growth for year 396% Sales growth for year 6 ended July 1990 ended July 1990 y

Price = 20*eps 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 0.14 0.13 0.12