The 7 Criteria of a Winning Stock

January 5, 2018
By Roger Michalski
Publisher, Eagle Financial Publications

 
Today, in preparation for the 2018 Trade of the Year event, Dr. Skousen consulted heavily with our special guest Jim Woods.

Jim is a 20-plus-year veteran of the markets with experience as a broker, hedge fund trader, financial writer, author and newsletter editor.

He’s the editor of Intelligence Report, Successful Investing and Weekly ETF Report.

Jim famously worked with Investor’s Business Daily founder William O’Neil, helping to author training courses in the CANSLIM stock-picking methodology.

He’s rated the No. 3 financial blogger in the world (out of more than 6,000) by independent research firm TipRanks. And he’s had a 72%+ success rate picking stocks.

In short, when it comes to recommending stocks… Jim is one of the very best.

So before our event, I had a quick conversation with Jim regarding some of the criteria they’ve identified in “trade of the year” stocks.

Here’s a transcript of some of our conversation:


Roger Michalski: Hey Jim, can you tell me a bit about your methodology? How do you identify a “trade of the year?”

Jim Woods: Sure.

First off, I’ll tackle why finding “Trades of the Year” is so important.

Many investors don’t realize this, but over the long term, the bulk of the market’s gains come from just a handful of very big winners.

Some studies show it’s as little as 4% of ultra-successful stocks that drive the entire growth of the broad market.

That small 4% is made up of stocks so successful… that if you can identify them, you can end up retiring on little else.

For instance, in 2017, the #1 performing stock is a somewhat unlikely one.

It’s a small regenerative health company called Polarity.

The stock has climbed 736% for the year.

It’s outperformed the markets by 4,200%!

And every year, there are a few stocks that hit grand slams like Polarity.

Roger Michalski: So how do you identify these? What are the key characteristics you look for?

Jim Woods: I don’t want to give away everything just yet. But I can give you a small sneak peek at some of the more basic stuff before the big reveal at our 2018 Trade of the Year event.

But one of the first things I should mention is that it’s important to start by identifying winning sectors…

I can tell you right now there are two sectors that will definitely be the top producers in 2018.

And I know Mark agrees with me here.

All my stock market indicators are pinging and letting me know that tech stocks and medical stocks will be big winners in 2018.

So the first thing I do is identify the winning sectors.

Roger Michalski: And after that?

Jim Woods: Then I look for individual criteria.

Again, I’m not going to share everything here. But what I like to do is start with obvious criteria and then move to more important rarer signals.

So I start with things like sharp increases in quarterly earnings and five straight years of annual earnings growth.

Then I begin targeting companies with big product launches or major catalysts. And I follow that by targeting companies completing share buybacks.

Once I use those characteristics to limit the numbers, then I start digging in with the more complex criteria that the average investor doesn’t know to look for.

Roger Michalski: And that leads you to big winners?

Jim Woods: Absolutely.

Take a company like Xcelera. It rose 11,060% in a single year!

That turns every $1,000 into $110,000… And every $10,000 into $1.1 million!

Roger Michalski: So what are you and Dr. Skousen looking at for the 2018 Trade of the Year?

Jim Woods: Again, I want to save the big reveal for our emergency summit. But I’ll give you some details.

For one, it is in the tech industry, where I expect we’ll see major growth again in 2018.

Harvard Business Review says this company is run by one of the “world’s best performing CEOs.”

And MIT Tech Review named it one of the “50 smartest companies.”

They just inked deals with major name-brand companies and we’re seeing every one of our metrics for top performers hit here.

We’ll save the numbers for the big event, but suffice it to say… they are HUGE.

As the CEO recently said “this is undoubtedly the most exciting time in our industry.”

Roger Michalski: I can’t wait to hear more about it. Thanks, Jim!

Jim Woods: My pleasure. Have a good one.


On January 11… at 2 p.m. Eastern time… I’ll be hosting an emergency summit with Dr. Skousen and Jim Woods directly, so you can hear more about the 2018 Trade of the Year.

From everything I’m hearing, this stock has a chance to be a huge winner over the next 12 months… perhaps one of the biggest trades of the year ever.

I can see why they agreed to guarantee 1,000% outperformance on this one.

Tomorrow, we’ll be back with some of Dr. Skousen’s most impressive predictions ever…

Plus, an update on what he sees happening with the economy in 2018.

2018-01-11T16:12:23+00:00 January 5th, 2018|Categories: Featured|