First- I use a screener (or picks from the BTS board), using Yahoo finance. Limits I like to put in include- Share price (1-5), share volume (100K min), market cap (100mil-1bil), revenue (min 1mil), profit (min 10%), P/E under 20, and P/B under 10.
I take that list and look at the yahoo profiles, and screen out those that have large insider selling, and contentrate on companies that have at least 10% held by management. Also- must have at least one intitution holding. I take a look at their cash position, and burn rate to make sure they are not going broke in the next couple quarters. One lat thing I look at on the profile page is the short position. A large short position means something is up, imo.
Next I go to the filings. I like to look for legal problems and financing deals. This tells me a lot about the risk involved. Also, look at the numbers for improvement. (I use nasdaq.com). The site also has a good review of insider and institutional transactions.
Then I do my own read at askresearch.com- look for rising indicators and crossovers. Also tight bollinger bands are a sign for an entry. Notice this chart- looks about topped out with the money flow downtrending, and most other indicators topping out. What keeps it going is the strength showing in the MACD, imo. May retract a little, but still a strong runner- http://139.142.147.218/HistoricalChart_Image.dll?interval_min=5&cus=&indexSymbol=&securi...
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