The “New” Edge: Characteristics of Winning Stocks

by Christina Wise

What characteristic have winning stocks had in common, bull market after bull market, decade after decade?

They brought something new to the table that gave them an edge over the competition.

Followers of the Investor’s Business Daily CAN SLIM Investing System know that a new product, new management, a new industry or other change often gave leading companies the advantage they needed to outpace the competition. This advantage was reflected in the dizzying climbs their stocks made.

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Christina Wise is a market commentator for Investor’s Business Daily (IBD) and the host of the IBD Market Wrap video..


Discussion

Renzo Basili from Florida posted about 1 year ago:

Am a Subscriber of IBD andfind it helpful. But reading charts is an art and to get uptodate charts is a premium service.


Paul Stadnik from Oregon posted about 1 year ago:

This article is quite poorly written and unsatisfying. The Title and Article Highlights (in printed version) allude to a fundamental type analysis of stock characteristics. The article begins there, but the only details are very soft: new product, new management, new industry.

It then moves into technical analysis without any real details there. For example, in regards to AAPL: "In January 2006, ... the stock formed a consolidation that was too short to qualify as a proper, classic base pattern." None of these terms are defined, and worse, the Figure plops a sell signal at the ultimate peak after a long climb (before any consolidation), implying it is trivial to identify such peaks. A close examination of the chart shows a similar, short term peak in March of 2005 that was presumably not chosen because the stock continued to rise after a short drop.

I'd like to ask the Editors to confirm that articles are concise, stay on topic and consistent with their graphics.


Tyrone Nally from Florida posted about 1 year ago:

in the 30's fdr took all gold bullion off the market. gold bullion in the 30's was against the law to own. gold coins were ok. nixon took the usa completely off the gold standard in the early 70's.
i also have a problem with christianas thought pattern on fdr as she thought released gold into the market would increase its value in a deflational period. one by releasing the gold to the public for sale would increase supply there by decreasing price. more money would be in the coffers of fdr's for his socialist activites to take root in the usa which has not been the same since.


Irving Saslaw from Florida posted about 1 year ago:

This article is short on multiple examples of current stocks that pass or fail the test for winning stocks.


Larry Keefe from New York posted 8 months ago:

The whole mindset of trying to pick 'winning' stocks is a losers game. AAII should reconsider an editorial policy of running this type of article. The proper name for any individual who is seeking to find the 'winning' stock that will make them rich is a speculator. This is the Association of Individual Investors (emphasis on last word.) The only way to build real wealth is through the careful selection of a portfolio of diversified assets.


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