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How I Use IBD to Find Potential Winning Stocks 347


          ROE of Past Leaders
                               Return on equity   Year an up     Percent
          Stock name             at the time     move started  increase to peak
          Pic ‘N’ Save            28.7%            1976          2950%
          Home Depot              27.8%            1982          958%
          Price Co                55.4%            1982          1086%
          Liz Claiborne           42.4%            1984          715%
          The Limited             42.3%            1985          451%
          This Can’t Be Yogurt    41.2%            1985          2073%
          Merck                   19.8%            1985          870%
          Microsoft               40.5%            1986          340%
          Cisco                   36.3%            1990         74445%
          Intl. Game Tech         22.9%            1991          1691%
          Nokia                   30.9%            1998          8620%
          Qlogic                  18.8%            1998          3345%
          America Online          36.3%            1998          481%
          Charles Schwab          29.4%            1998          434%
          Coach                   43.1%            2002          625%
          Chicago Mercantile Exchange  28.2%       2002          915%
          Nextel Intl.            56.1%            2003          368%
                                                                            © 2009 Investor’s Business Daily, Inc.
          Google                  87.8%            2003          536%
          Southern Copper         47.6%            2004          369%
          C B Richard Ellis       26.4%            2004          220%
          Hansens                 43.6%            2004          751%

          ume changes. It tells you if your stock is under accumulation (professional
          buying) or distribution (professional selling). This thoroughly tested, com-
          plex, and proprietary formula is highly accurate and is not based on simple
          up/down volume calculations. Stocks are rated on an A to E scale, with each
          letter representing the following:
            A = heavy accumulation (buying) by institutions
            B = moderate accumulation (buying) by institutions
            C = equal (or neutral) amount of buying and selling by institutions
            D= moderate distribution (selling) by institutions
            E = heavy distribution (selling) by institutions
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