Page 222 - How to Make Money in Stocks Trilogy

America’s Greatest Stock-Picking Secrets 107

Price 260 220 190 160 140 120 100 80 70 60 45 38 32 28 24 20 17 15 13 11 9 Volume 8,000,000 5,000,0000 3,000,00 1,800,000 © 2009 Investor’s Business Daily, Inc.

Jun 2008

Mar 2008

Dec 2007
%
Sell: breaks upper u a b e channel line channel line i h e n 2007 quarter r er a 0 earnings growth accelerated e e h +34%, +53%, +107%, to +126% to +126% + +107% 7 + Sep 2007
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Add: off 10-week e w moving average line moving average line moving average line e e r a n In the March, 2007 quarter, h n the March a e t o g n % +53% 5 % +34% 4 Jun 2007 Mar 2007

S&P 500 d o r
Dec 2006

n n Sep 2006
Market correction Market correction o + % 5 h % 15% r hi s Buy B B 15-week cup- w with-handle with-handle - Jun 2006 Mar 2006 Priceline.com increased 320% in 85 weeks.

Precedent for Priceline.com was Redman Precedent for Priceline com was Redman R c r Industries from January, 1968 y o At buy point: i yp Last quarter EPS growth: +34% a Annual average EPS growth rate: +65% Last quarter Sales growth rate: +15% Last quarter Sales growth rate: s a R
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Mar 2005 Jun 2005
Dec 2004 Sep 2004
Priceline.com–2006 Weekly Chart Jun 2004 Mar 2004

Price = 20*eps 13 12 11 10 9.00 8.00 7.50 7.00 6.50 6.00 5.50 5.00 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