Page 64 - How to Make Money in Stocks Trilogy

28 A WINNING SYSTEM

Price 60 50 40 34 30 26 22 19 16 14 12 10 8 7 6 5 4.0 3.4 3.0 2.6 2.2 Volume 30,000 16,000 8,000 4,000 2,000 © 2009 Investor’s Business Daily, Inc.
y y s ’s k ht g se se Sep 1957

p Sell: climax top Sell: climax top x m t the t r h t o e t When it h r n 0 0 s w e b w 1 o e breaking out of a sound bas u . a e n f t g r b w o y e that s why they t h s h n m 3/1 Jun 1957

Dow Jones Ind. e You may ask, why shouldn’t you buy here at the b b o ’t ’ ld h h hy w k s om to get a lower price? You are not trying to bu bottom to get a lower price? You are not trying to bu Y ? Y Y r e o a g at the cheapest price, but at the time the stock has t u

n o c Buy Buy u ay Y Y Y Y Y Y Y Y botto t b h h a a t n l d g v m s s b ’ n e w n r n b i d g n g m k m Jun 1956 Mar 1956
Market correction s, e y vity . . g a s n x. x x outperforming the market index m Volume up Volume up Volume up Dec 1955 Sep 1955

Materials restrictions were lifted after the Korean Materials restrictions were lifted after the Korean t n War ended in 1953. This led to rapid expansion p x p o . e for Outboard Marine. It broadened its base by b e o using its motors in snow blowers, lawn mowers, o n a s, e b ow o s
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0 k 0 5 n Add: 4 weeks s w tight closes s l ih g Buy B Volume up p Volume up Volume up u Big increase in volume Big increase in volume v Jun 1954 Mar 1954 Dec 1953
Outboard Marine–1954 Weekly Chart Prices are adjusted for 3-for-1 stock Prices are adjusted for 3-for-1 stock o t split, so price at breakout was $13.50 split, so price at breakout was $13.50 w s Earnings acceleration a g c Sep 1953 Jun 1953

Price = 20*eps 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 0.20 0.18 0.16 0.15 0.14 0.13 0.12 0.11 0.09 Mar 1953