Page 535 - How to Make Money in Stocks Trilogy

404 INVESTING LIKE A PROFESSIONAL

Netflix Price
120
Weekly Chart S&P 500 100
Online movie rentals 80
70
60
11 consecutive quarters 50
of earnings growth New Leader IdeaLeade a
40
Last quarter eps +38% 34
30
26
Last quarter sales +16% 22
19
ROE 17% RS line atline atai 4 4 weeks lateweeks lateaew r r, volume upvolume up 16
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new highhigh
n new g 197% due to acceleratingdue to acceleratingee to a%9 g g 14
197%
ea eaarrningsningsn 12
Mutual fund ownership Volume
increased by 67 since 12,000,000
January 7,000,000
4,000,000
2,000,000
P/E Ratio 23 Jun 2008 Sep 2008 Dec 2008 Mar 2009 Jun 2009 Sep 2009 Dec 2009
Amazon Price
260
Weekly Chart S&P 500 220
M
Market low w w 190
Market lowket lo
160
2-year annual eps growth 140
120
3
+149%, +33% 3 weekskkw New Leader Idea 6 daysyr Idea
New
tightg g g tight closesclosesec before follofollof w w w-throughthroughuh 100
before
befo
2-year annual sales growth 80
+39%, +29% Key divergence: stock up y vyyyy ge g g e: sto p 70
f from $34-64 while S&P$34 64 hil S&Pwhile43m 60
ROE 33% Both weeks had huge weeks had hugead hswot 500 plunges to new lows newsu0 p g 45
Both
volume without fuut futml rthee r 38
P/E Ratio 43 price progress down. s doressp 32
Thi
This is suppois p p pp rrt.t C C Cup-with-p- i ht
h hd Big volumegg g g g o m 28
handleld
24
Volume
80,000,000
50,000,000
30,000,000
18,000,000
Jun 2008 Sep 2008 Dec 2008 Mar 2009 Jun 2009 Sep 2009 Dec 2009
Green Mtn Coffee Price
120
Weekly Chart S&P 500 100
80
3-year annual eps growth 70
+62%, +38%, +97% 60
N
New Leader Idea 2 daysLeader Idea 2 dayssa 2 dLea 50
New
a after follofollow-throughugh-
Last quarter eps +38% 40
3 weeks kw 34
g g g g g tight closesc osese 30
Last quarter sales +56%
26
22
ROE 19% 19
Pre-tax margins 7% Cup ith 16
C Cup-with-with-up-wu
handle pattela ppatteat rrrnn RS line atSS e 14
handle
new highiw g
8 quarters of mutual fund 12
Volume
ownership up 8,000,000
5,000,000
3,000,000
P/E Ratio 50 1,800,000
Jun 2008 Sep 2008 Dec 2008 Mar 2009 Jun 2009 Sep 2009 Dec 2009