Page 50 - How to Make Money in Stocks Trilogy

America’s Greatest Stock-Picking Secrets 21

Price 140 120 100 80 70 60 50 40 34 30 26 22 19 16 14 12 10 8 7 6 5 Volume 1,600,000 800,000 400,000 © 2009 Investor’s Business Daily, Inc.

y d plit Jun 1929
Shakeout: but barely u k closes week down and o e w e closes at top area for closes at top area for a o a e the week e w e e m 5 for 1 split 1 5 f 5/1 Mar 1929

Dow Jones Ind. A w w it now o Buy off 19-week k week e 9 Buy off 19 f u base s l l h o Shakeout of buyers who w ye b o o were wrong in buying n u n n w from 3rd stage base from 3rd stage base e a g s 3 breakout to new high. h h n t o o e nings g g n m Ab

Note: Once RCA, in the June e n A R c O & September 1928 quarter, & September 1928 quarter e 9 e m t undercuts the low price of point A o f c p o h s c and completes a new base, it now t e and completes a new base b e a t p o becomes a 1st stage base. b g g g s 1 m Do

Radios gained in popularity during the 1920s 9 r p 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 million by 1924. In 1926, through mergers million by 1924. In 1926, through mergers e 1 and acquisitions with RCA’s own network, the k w h National B

entertainment.
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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 l o Of the more than 1 000 models we have of 0 o y g hi l q y q o $ Jun 1926
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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