Stocks

Extraordinary opportunities are what an investor is looking for with the Bullseye System—companies with dynamic new products and services.

So, the first logical step in learning to pick stock market winners is to examine the most successful stocks of all time. What did they have in-place before they 'took off' on their major price advances?  Ideally, you want to buy stocks with this same "genetic makeup." Focus on companies that have products or services that enhance the quality of our lives, make us more efficient, our tasks less labor intensive, and businesses more cost effective, etc.

These types of companies have been - and should continue to be - the biggest winners in the market due to the high demand for their goods, products, and services.  Revenues are generated, which in turn should lead to earnings acceleration-the number one reason for share price appreciation. This creates exciting investment opportunities for investors who can identify potential markets and demand for these new products and services.  These companies continue to fuel the growth of the American economy.  They take their ideas and transform them into new products and services, thereby creating exciting investment opportunities for you.

Following are the characteristics we try to look for in finding stocks before they 'take off' on major price advances.  Although no situation is ever perfect, I believe the greater the number of these criteria a company exhibits, the greater the likelihood of its success:

• Strong research and development efforts
• Proven track record
• Undervalued relative to its growth rate and market potential
• EPS rank >90
• Beginning of a product or technology curve; strong pricing power
• 10% net margins or better
• Little coverage by analysts
• Huge potential market
• Relatively small institutional ownership, <30%
• High insider ownership
• Accelerating revenue growth
• PE/Growth <1
• Accelerating earnings growth
• Minimal competition
• Experienced management team
• Relative strength ranking >80
• Strong balance sheet - low debt, lots of cash
• Market leader
• Product exclusivity-(i.e., patented technology)

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