1. Insider buying information
Insiders are company's CEO, president, board members,
executive vice president of the various departments.
Insider buying information top my list for obvious reasons.
Insiders have lots of reasons to sell their shares: buying a
house, huge vacation expenses, etc. However, there is usually
only one reason, when to buy the shares of their company insiders
with their personal money: the insiders believe the stock
prices are cheap and they can make money by buying their own
stocks.
Insider buying information is also very informative to
understand market sector movement. Many time I looked at
buy the insider information from industry point of view.
Particular sector had constant for some time
insider buying activities of several companies of the
same sector, which may indicate a sector-wide
undervaluation or bullishness. That was exactly what I found
in late 2003 and early 2004, when I found a lot of insiders
oil and natural gas companies constantly buying their
stocks. Eventually I chose two oil and gas resources in the late
2003 and early 2004 Whiting Petroleum (ticker WLL) and
Chesapeake Energy (CHK Ticker) from insider buying
information and they have been very successful for my premium
investment newsletter Blast Investor Real-time Plus (BIRTP)
and rewarded myself financially very substantial.
2. Guru Watch
It is definitely worth tracking stock picks or worth
ideas from the legendary gurus such as Warren Buffet, Eddie
Lambert, Jim Rogers, etc.
Wall Street Journal is a great source of investment and
financial information. My 2003 stock pick PetroChina (PTR)
was from an article in the Wall Street Journal, which published
news of Warren Buffet buying PTR. I immediately bought in
PTR stock on the same day that I read the article and
beautifully benefited from this choice.
Warren Buffet is the best value investor in the world and
you can not afford to ignore him. One way to follow Warren
Buffet picks is to go to Yahoo Finance and then read news
headlines under the ticker of BRK-A.
Recently, internet information grew so big and I believe
it is now much easier to follow gurus from web instead of
reading newspapers or magazines. An easier way to follow guru
picks to tracking services offered to use. in the web Here I
recommend the tracking service
Gurufocus.com. GuruFocus tracks almost all
value-oriented Wall Street gurus. Their list of gurus is
huge, Warren Buffet, Edward Lambert, George Soros, etc. They
even a newsletter warn you publish the latest guru buy
and sales promotions. Their service is great and the best so far, the
is all free!
3. Software Screening Tool
Blast Invest works internally a Mysql based relational
Saving database of about seven thousand shares with all
valuation metrics and tools that I can do for Benjamin
Graham NCAV ranking, return on equity modeling, low pe or
low price sale screening, etc. We work database
information every week and I constantly mine the database
looking for the big winner that can reward both me and my
newsletter readers.
Insider buying information can be even more powerful when
you can combine insider buying data with appreciation or
screening strategy, which is exactly what we do at Blast Invest
with this powerful internal relational database.
However, I found the free or low-cost screening tools out there
in the web are not impressive. Validea.com tool is nice, but
it lacks the powerful feature that I want. Yahoo or MSN tool
tool works, but they are not for power value
investors. Therefore, I can arrange my internal screening tool
very high for getting stock leads, you'll be disappointed
if you do not have access or can not pay for this powerful
instruments at a reasonable cost.
4. Online Message Board Networking
Stock message boards are wild and you may be surprised that
I put this as one of the top sources of information for getting
stock leads. Well actually, I got tips and found very solid
stock leads from internet message boards.
Actually I started myself as wild BBS stock guru many
years ago before I started blastinvest.com newsletter
business. Many Chinese American friends who regularly
visit major online BBS (mitbbs.com, or goofiz.com) would know
my past track record very well. My past BBS investment
performance certainly good performance of most if not all
The value of mutual funds hands down. My past
surely you can tell us something about the nature and quality
of message boards. Sure, most of the BBS members probably
not investing gurus, and some people in the forum can stock
is dangerous stock promoters or hypers. But certainly
there are some excellent stock gurus out there and there are
valuable investing or stock pick information there. So just
be careful and do your homework if you use information
online stock boards.
Two of the known value investing forums in the U.S.
Forum Value and Value Investor Club. Unfortunately,
Value Forum is fee-based message board and you can not post
messages without paying any fee. Value Investor Club seems
for beginners or amateurs refuse and they only want gurus
(Maybe Wall Street gurus) offering stock tips together.
I myself certainly do not agree with the approach of Value or Forum
Value Investor Club. That is why recently Blast Invest LLC
launched a free forum specifically for the individual value
investors: value-investing-forum.com. For more information
about why you should join a forum, regardless of whether
you're a beginner or a smart value investing value
investor, click here:
http://value-investing-forum.com/viewtopic.php?t=483
5. Traditional newspapers and magazines
This group includes Investor's Business Daily, Forbes,
Fortune, Barrons, etc, I read them all from time to time.
If you live near New York City and tune in to Bloomberg
radio, go bombardment of ads, as heard
"Barrons, investing information, the best source of stock".
However, my rating on their capability of giving me stock
leads or ideas are poorer than the above channels. The stock
picks published in the public media are pretty mediocre.
Of course, I still believe that they are very useful information
to understand the economy and what Wall Street gurus know
do or think. So they may not be worth subscription
fee for you to pay, they are definitely worth your time to
visit public library once a while to read them.
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