Posted by: eminitrader May 9, 2007
Stocks Selection
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Thapap: Nice to hear different views and different criterias. Most of the mutual funds are not going to own something that is less than $10, some will buy stocks between $5-$10. The institutions that own it are mostly hedge-funds where they do not necessarily have as many rules. I like stocks with high short interest especially if the stock is holding up strong. Once it closes above $2.50, the short sellers will rush to cover which will lead to higher price. For example one of the stocks that I had mentioned on my other thread was XLNX aroung $25-$26. The reason was because it had the largest increase in short interest from the previous month. It is currently around $30. I have not done any analysis regarding the average volume and the float so I do not know. I'd like to hear between their relationship. The way I look at 52 week high is that it has to go above 52 week highs to make new 52 week highs. I can see this go to $3.40 in the near future. That is same as a $10 stock going to $14. It is possible. I trade price only because price reflects every expectation of all the players. I was wrong on RADS. I like DYN here as I mentioned in my earlier post.
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