Stock Tips System - Buy Stocks That Double

Investing Tips Magazine

The Right Stocks Tips System Generates Fast Returns - A Look At The Two Fold Formula for Buying the Top Stocks: Mike Swanson

Yes there have been fortunes made in the stock market.  There is no doubt about that.  But the reality is there has been money lost too.  If you look back over the past 50 years of investing those that have struck it big in the stock market have done so by buying into the right stocks and watching them go up in value.  In short they had a real system for picking out the right stock picks to generate fast returns.

Take Warren Buffett.  He is the most famous investor of the 20th century.  He made all of his returns in the stock market by applying a disciplined system of picking out stocks using the value investing teachings of Benjamin Graham.

Of course not every one of his investments have done great, but the times when he made a lackluster investment decision almost always happens when he deviated from his investment system.

There are many ways to pick out stocks out there.  Usually one focuses on pure technical analysis chart patterns or fundamental analysis.  And when it comes to fundamental analysis most people either look for pure growth or pure value.

I have found that the best stock tips system combines all three methods into one.  I call it the Two Fold Formula, because it is the system that I have discovered that most consistently identifies the stocks that go up the most in the shortest amount of time.

What I do is look for a repeating chart pattern that historically occurs most often right before a stock makes a big move higher.  I then look for stocks that have both a low valuation and are poised for high earnings growth.  Only a few stocks meet these criteria but the ones that do tend to go up like gangbusters. This works even with penny stocks.

One key indicator that I use is the PEG ratio – which stands for price to earnings growth.  This is the secret indicator that famed billionaire investor john Templeton used to identify the stocks that he wanted to invest in.

In case you don’t know who Templeton is – and it possible because he just died a few years ago at the ripe age 95 – he managed one of the largest hedge funds of the past 50 years.  Indeed he is considered a founder of the hedge fund industry.  Templeton founded the John Templeton Foundation and created several well diversified mutual funds, which were among the first to invest in Japan in the mid-1960’s.  He steered clear of the 2000 tech crash.

Money magazine called John Templeton the “greatest global stock picker of the century.”  He looked for value and growth.

If you want to win in the market it makes sense to study winners and the systems they used.  I myself managed a hedge fund for several years that trounced the market during that time.  Most people though just aren’t taught these concepts.

I know if you have tried to study it than you know that the normal P/E ratio has a bunch of disadvantage to it and can be volatile from year by year.  It also tends to look back and not forward.  Low P/E simplydo not always translate into higher stock prices.

What the PEG ratio does is divide the current price of a stock by the rate of earnings growth over the next five years.  So instead of just buying based on current earnings you use the PEG ratio to find value based on future earnings.

Generally a PEG ratio of 1 is considered to be fairly valued while one below 1 is undervalued.

What I do is look for PEG ratios under .50 to find stocks that should double in value based strictly on their earnings potential and current valuation.

You see it is still important to look at valuations and that is another trap that most growth investors fall into.  They only look at growth and not what they are paying for growth.

Combine this concept of paying a discounted price for high earnings growth with secret charting patterns and you can make a killing.  It makes for a powerful stock picks system. All I do is track the 50 top stocks.

I don’t have space or time here to tell you all of the characteristics that I look for, but you can have this system for free by simply subscribing to my weekly stock market newsletter - which is free too!

Once you sign up you I will email you copy of the Two Fold Formula so that you can start to use it right now.

I think it will amaze you.

Just the other month I picked out a stock that went from $8 a share to over $16 a share in the matter of weeks and right now I am researching another stock that I will release as a stock tip any day now. This is the place for investing tips - bar none.

This is going to be an exciting time in the stock market and I want you to be a part of it.  Join it is completely free.  Just click here.