Page 168 - How to Make Money in Stocks Trilogy

80 A WINNING SYSTEM

Price 70 60 50 40 34 30 26 22 19 16 14 12 10 w e g 8 7 6 4.5 3.8 3.2 2.8 2.4 Volume 8,000,000 5,000,000 3,000,000 1,800,000 © 2009 Investor’s Business Daily, Inc.

Add: 2nd pullback below a l 2 10-week moving average v g g v m e line and recovers back b r o e n above line on volume above line on volume m o n e e (+650% EPS growth for t gro S E 0 current quarter) ) t u n Dec 1993 Sep 1993

d d - e o 6 ( r 2/1 Jun 1993
e o n ) 9 2 e Mar 1993
S&P 500 Sell: goes above o l S S S S channel line just t channel line just n e a c like Texas Oil & e e l Gas (page 59) an g (p p s G Gartner (page 82) Gartner (page 82) p p e r G g ff e Big volume olume m o Dec 1992

Add: 3 weeks tight closes, Add: 3 weeks tight closes, s c g s e 3 stock pulls back to old high o k a p of base and bounces off f s b db n fb 10-week line on volume 10-week line on volume u e y Buy B week base a week k 22-wee w 2 g g g s y-ups Dry-ups u

Dec 1991 Mar 1992

Sep 1991 Newbridge Networks increased 699% in 49 weeks.

Jun 1991

Mar 1991

Dec 1990

Sep 1990 Jun 1990
Newbridge Networks–1992 Weekly Chart O O Mar 1990 Dec 1989 Sep 1989

Price = 20*eps 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 IPO IPO P 0.35 * * 0.30 0.25 0.23 0.20 0.18 0.16 0.15 0.14 0.13 0.12 0.11