Page 49 - How to Make Money in Stocks Trilogy

© 2009 Investor’s Business Daily, Inc.
1,600,000
800,000
400,000
Volume
6
5
7
8
Jun 1929
plit
5 for 1 split
1
5/1
Mar 1929
5 f
e
Above average volume
Above average volume
e
m
and higher volume
Dec 1928
o
m
than prior week
than prior week
g
o
e
r
e
Sep 1928
a
g
pr
n
o
d
accelerating earnings
accelerating earnings
nings
A
Note two quarters of
a
g
o
g
t
Jun 1928
Huge volume
n
accelerating earn
e
m
e
e
a
n
q
n
g
Mar 1928
g
g
Radio Corporation of America increased 739% in 74 weeks.
w
u
e
e
c
t
c
a
a
Dec 1927
Big volume
Big volume
e
e
m
breakout
lat base
s
l
Sep 1927
fla
fla
Jun 1927
Radios gained in popularity during the 1920s Price 9 r p 140 from 5,000 in-home sets in 1920 to over 2.5 from 5 000 in home sets in 1920 to over 2 5 r 2 e Note: Once RCA, in the June e n A R c O Dow Jones Ind. 120 million by 1924. In 1926, through mergers million by 1924. In 1926, through
Mar 1927
Dec 1926
Sep 1926
entertainment.
s
m
n
B
m
0
y
a
p p p
y p Remember: examples of great winners are split-adjusted for all splits. Don’t fa e into trap of incorrectly thinking because buy point marked on RCA’s chart was a g 14, that was the real price at that time. It was really 5 times 14, or 70 since m all stocks in these 100 examples ha
l d k m r d l o Of the more than 1 000 models we have of 0 o y g hi l q y q o $ Jun 1926
Radio Corp. of America–1927 g m m n y r p a a a s c o w 1 M p p p p $30 range and Google was $113 s G a s yg yg yg y 0 $100 $30 up p fr b s $5, we avoid $3 o e m o Sep 1925 Jun 1925 Mar 1925
Price = 20*eps 6.50 Weekly Chart 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 0.40 0.35 0.30 0.25 0.23