Eye Opener William O'Neal

The common Stocks you select for purchase should show a major percentage
increase in the current quarterly earnings per share (the most
recently reported quarter) when compared to the prior year's same
quarter.




The hard-to-accept great paradox in the stock market is that what
seems too high and risky to the majority usually goes higher and what
seems low and cheap usually goes lower.


your job is to buy when a stock looks high to the majority
of conventional investors and to sell after it moves substantially higher
and finally begins to look attractive to some of those same investors.


One fairly positive sign, particularly in small- to medium-sized companies,
is for the concern to be acquiring its own stock in the open marketplace
over a consistent period of time

Most of the time, people buy stocks they like, stocks they feel good
about, or stocks they feel comfortable with, like an old friend, old
shoes, or an old dog. These securities are frequently sentimental, draggy
slowpokes rather than leaping leaders in the overall exciting stock
market

First Fundamental Facts of my NEW Knowledge

C = Current Quarterly Earnings Per Share: How Much Is Enough?

A = Aimual Earnings Increases: Look for Meaiiingful Growth.

N = New Products, New Management, New Highs: Buying at the Right Time.

S = Supply and Demand: Small Capitalization Plus Volume Demand.

L = Leader or Laggard: Which Is Your Stock?

I = Institutional Sponsorship: A Little Goes a Long Way.

M = Market Direction: How to Determine It?



C = Current quarterly earnings per share. They must be up at least
20%.
A = Annual earnings per share. They should show meaningful growth for the
last five years.

N = New. Buy companies with new products, new management, or significant

new changes in their industry conditions. And most important, buy stocks

as they initially make new highs in price. (Forget cheap stocks; they are

usually cheap for a very good reason.)

S = Supply and Demand. There should be a small or reasonable number of
shares outstanding, not large capitalization, older companies. And look
for volume increases when a stock begins to move up.

L = Leaders. Buy market leaders, avoid laggards.

I = Institutional sponsorship. Buy stocks with at least a few institutional sponsors
with better than average recent performance records.

M = The general market. It will determine whether you win or lose, so learn to

interpret the daily general market indexes (price and volume changes)

and action of the individual market leaders to determine the overall market's

current direction.