CCME

A lot has happened since the last article I have written. I will begin this blog by explaining what changes have been made to the Duck Brother’s account and brief updates on stocks in our watch list. Also I will explain a little on the strategy for our account.

Last week we sold MIPS, INFA and purchased ALTR (Refer to the article on ALTR for fundamentals and buy point). This transaction can best be explained by our strategy. In our account we will hold at most three stocks at a time and from different sectors. Our goal is to choose the best stocks on the move, also known as buying fundamentally sound growth stocks with sound chart patterns. We analyze the stocks using William J. O’Neil’s CANSLIM approach. Sources of this approach can be found in the Successful Investor and How to make Money in Stocks. MIPS and ALTR are securities from the same sector. We sold MIPS because ALTR is more fundamentally sound and hit a buy point with increasing daily volume. We sold INFA because it had a large distribution day over 100% above average. This sign tells me that institutions are selling the stock. For this reason we decided to take our profit and move on. Below shows our securities since inception of this blog.

The main stock in our watch list that I would like to address is FFIV. FFIV last week hit the buy point monatarily, but not by daily volume. Since the the volume did not indicate insitutions were buying FFIV we did not purchase the stock. If volume does not increase 40% or more the stock is more risky and as you can see FFIV took a big tumble sortly after the price move. Below is a graph of FFIV.

This week our stock pick of the week is CCME. CCME is a Chines company that operates a television advertising network. CCME is creating a cup-with-handle pattern. Watch this security, it should move down to the 50-day moving average. The downward trending is the handle. Once it gets close it should gain support indicating institustions are purchasing the stock. The stock will then run-up passing the buy point with increasing daily volume. If this happends the stock will be a good security to add to our Duck Brother’s account.