Sunday, August 1, 2010

52 Week High List (A great place for investment ideas)

Have you run out of investing ideas?  Individuals only have a certain amount of research capacity when it comes to investing in stocks.  This is the reason you tend to buy your favorite stocks over and over again.  To add a little spin on finding your next investment keep tabs on the 52 week high list.  This is the list of stocks that have recently surpassed their highest price for the year.  You  may be somewhat reluctant to want to invest in these companies, but I'm here to tell you that these are the best companies for future investments. 

Stocks that have hit their 52 week high are in favor.  Fund managers continue to buy stocks that are working.  These stocks are making money and doing what's right to add value for investors.  As long as a company is liked it will continue to have buyers to take the price of the stock higher.  Here is the recent list for companies that have hit their 52 week high.  I happen to like stockpickr so please follow this link to research for yourselves.  http://stockpickr.com/today/52-Week-Highs/  (Deere (DE) is on there)

My recommendation for the 52 week high list is to find a few companies that you like.  Once you do your research wait for the stock to pull back about 3 to 5% then make your 1st initial purchase.  Continue accumulating this stock over a period of time at multiple prices.  This way you can get a better price overtime.  Also, dig a little deeper and find out what sector/industry these stocks are in.  Look at their competitors as they may be a great investment as well.  This will broaden your investment selection and you may find a stock that is undervalued and has yet to realize the success of the stocks that have hit their 52 week high.  Remember as Jim Cramer would say 50% of a stocks price movement has to do with the sector.  If the sector is in favor the stocks in that sector will have the momentum to go higher. 

That's it for me.  Have a great weekend!

Clay-

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