How To Find A Home Run Stock

Home Run = A stock that doubles or triples in six months to a year.

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About John Lux

Former market maker, investment banker, security analyst, author of "How to Find a Home Run Stock," "How the Shorts Raid Your Stock, Destroy Your Company, and What to Do About It," and "How to Pick Hot Reverse Merger Penny Stocks," all available on Amazon.com Contact me at Lux.investor@gmail.com

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How to Find a Home Run Stock

Webinar by John Lux in April 2009 — at the bottom.

This webinar was done in 2009, near the market’s low.



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About John Lux

Former market maker, investment banker, security analyst, author of "How to Find a Home Run Stock," "How the Shorts Raid Your Stock, Destroy Your Company, and What to Do About It," and "How to Pick Hot Reverse Merger Penny Stocks," all available on Amazon.com Contact me at Lux.investor@gmail.com

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How High Can a Stock Go?

By now, we should all know the basics of stock picking: (1) find  cheap stocks, (2) investigate to see if they have upside potential, (3) take a position, (4) take profits.

 

Now given that you have been smart enough, and hard working enough and lucky enough to find a hot stock, when do you sell?

 

Decades ago I spent a week at a very expensive health resort and found myself in the company of some rich oil men, successful car dealers, a top movie star, and a recently retired Wall Street investment banker. This man had worked for one of the more elite and sophisticated Wall Street firms out there. He was worth $100 million at a time when that was real money.

 

Naturally, the investment banker and I got into a conversation about investing. What he said to me was one of the most interesting concepts in investing I have ever heard.

 

I told him “Anyone can say when a stock is cheap. How do you know when to sell?”

 

This man was naturally a crusty old man, but at this point he became positive enraged, practically yelling at me as he said “You don’t buy stocks to sell, you buy them to keep!”

 

You may be interested to know that this man only had three stocks in his portfolio. They were the three greatest growth stocks of the era, IBM,  3M, and Xerox. If you were going to hold three stocks, there were the ones.

 

This reveals his style of investing. Find the highest quality growth stocks, buy and hold. If anything, buy more at every opportunity.

 

You cannot argue with success, and his investing was very successful.

 

This presupposes that you are smart enough to find the best growth stocks. I apologize when I tell you I am not that smart. Warren Buffet is and he looks for companies with a competitive moat that protects them from having their business taken by the competition.

 

In our country, few businesses can claim such an advantage over a long period of time. When others see exceptional profits, they are likely to start attacking that market. Few companies have a sustainable competitive advantage.

 

My own philosophy is to sell when the stock reaches a level that suggests it is overpriced. Now stocks can go to ridiculous heights or crash unexpectedly and you want to capture as much profit as possible. Therefore, I suggest you use technical analysis of the market, especially trend following techniques, to find your exit.

 

My approach is more that of a trader than an investment banker. I am hoping that I can double or triple money in six months or a year and continue to do that so outrun a great growth stock.

 

True, I have to continually find new stocks. The long term investor has to have an depth understanding of the business. We both are working hard and we should both have good profits. One advantage of the long term approach is that you do not have to pay taxes every year on your profits.

 

You have to decide which is best for you.

 

I do try to find markets and companies that have sustainable competitive advantages that will last for years. As you can imagine, these gems are rare. Until I find them, I am using my home run stock approach.



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About John Lux

Former market maker, investment banker, security analyst, author of "How to Find a Home Run Stock," "How the Shorts Raid Your Stock, Destroy Your Company, and What to Do About It," and "How to Pick Hot Reverse Merger Penny Stocks," all available on Amazon.com Contact me at Lux.investor@gmail.com

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Short Selling Technique of Market Makers

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Former market maker, investment banker, security analyst, author of "How to Find a Home Run Stock," "How the Shorts Raid Your Stock, Destroy Your Company, and What to Do About It," and "How to Pick Hot Reverse Merger Penny Stocks," all available on Amazon.com Contact me at Lux.investor@gmail.com

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Groupe Athena, Inc. Reports Record First Quarter Revenues, Adoption Of IFRS Accounting Standard In Anticipation Of Applying For Listing On The NASDAQ Bulletin Board

MUMBAI, India, Nov. 14, 2012 /PRNewswire/ – Groupe Athena, Inc. (Pink  Sheets: GATA) announced today record revenues of $15,367,544 for the first quarter ending September 30, 2012, which is a 25% increase over the same period in 2011. Net after tax income for the period was $1,307,293 or $.03 per share which included a one time expense of $407,181 related to the purchase of the company’s new facility in India. Trailing twelve month (ttm) earnings remained strong at nearly $.10 per share. The company also has a very healthy cash position and no long term debt.

The Company’s Chairman, D. Purohit stated, “The pharma industry within our region is still very robust and Groupe Athena is extremely well positioned to continue on our current growth track for the foreseeable future. And with the recently reported asset additions which allow us to perform more services in-house, our margins are also increasing significantly.”

In other news the Company has completed their recent transition from GAAP to the International Financial Reporting Standard (IFRS) for all future audited financials. The Company’s annual report for the recent fiscal yearend on June 30, 2012 which was released on August 20, 2012 was audited using IFRS. With the completion of the audit for this fiscal year end on June 30, 2013 the company will seek to qualify for listing on the NASDAQ Bulletin Board quotation system.

To review the complete quarterly report please go to www.otcmarkets.com/stock/GATA/quote and click on “Financials.”

The company reports it is still committed to funding all capital expenditures entirely from internal cash accruals without any shareholder dilution or debt increases.

As was previously stated, the Indian pharmaceutical industry is increasingly focusing on exports to the United States and GATA is well positioned to help them get their products approved by the FDA for sales in the US. All of these are potential clients and the Company believes it has an advantage over competitors due to the facilities based in India, and their ability to deliver quick feedback to clients that could result in expedited order generation. With recent additions to equipment, the company will continue to take on additional contracts and continue to anticipate further growth.

PR Newswire (http://s.tt/1tnJ9)



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About John Lux

Former market maker, investment banker, security analyst, author of "How to Find a Home Run Stock," "How the Shorts Raid Your Stock, Destroy Your Company, and What to Do About It," and "How to Pick Hot Reverse Merger Penny Stocks," all available on Amazon.com Contact me at Lux.investor@gmail.com

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GATA up sharply

As I write this, Tuesday, November 13, 2012, GATA is up sharply in the last few weeks from $0.14 to  $0.32, as it continues its growth as we predicted.

By no means would I consider that this stock has reached its peak.

Hold and be happy!

 

 



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About John Lux

Former market maker, investment banker, security analyst, author of "How to Find a Home Run Stock," "How the Shorts Raid Your Stock, Destroy Your Company, and What to Do About It," and "How to Pick Hot Reverse Merger Penny Stocks," all available on Amazon.com Contact me at Lux.investor@gmail.com

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GATA earnings exceed my predictions, up 116%

GATA earnings rose to a record level, over $4.4 million, or 9.4 cents per share.

“Groupe Athena, Inc. (Pink sheets GATA.PK) today announced record revenues of $44,571,386 for the recent fiscal year ended June 30, 2012, an increase of 78% over the previous year. After tax earnings increased 116% to a record $4,417,047 or $0.094 a share.
The Company’s Chairman, D. Purohit stated, “Though we are pleased with these results, we will continue adding more equipment and concentrate on our marketing efforts to increase revenues. As a result of these efforts, we are confident of reporting record revenues in the current fiscal year too. As many critical drug patents expire for large U.S. manufacturers, our client base is bound to increase. This is an exciting time to be part of our dynamic revenue growth and we look forward to increasing our market share in the Indian pharmaceutical industry.”
Though the company added $4,656,442 in assets, it’s cash positionis extremely healthy with cash and short term assets of $ 3,286,141 as againstcurrent liabilities of $ 84,090. The company is proud of the fact that all equipment and other acquisitions have been made entirely from internally generated cash and it is the commitment of management that future additions to the asset base be accomplished without any further dilution or debt increases.The Company has no plans for shareholder dilution over the next 12-18 months. ”

As I write this, the stock is selling at 20 cents per share, or a little over two times earnings for a company with enormous growth and great cash flow.



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Former market maker, investment banker, security analyst, author of "How to Find a Home Run Stock," "How the Shorts Raid Your Stock, Destroy Your Company, and What to Do About It," and "How to Pick Hot Reverse Merger Penny Stocks," all available on Amazon.com Contact me at Lux.investor@gmail.com

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Groupe Athena, Inc. Announces Record Revenues for Third Quarter and Nine Month Financials, Makes Strategic Equipment Purchase and Explores New Revenue Potential

MUMBAI, India, April 11, 2012 /PRNewswire via COMTEX/ — Groupe Athena, Inc. (Pink sheets GATA.PK) announced they have released their financial results for the third quarter which ended March 31, 2012. Total revenue for the period was $10,378,928 which is 140% greater than the same period in 2011. Net income rose to $1,184,000 compared to $731,644.

For the nine months the company also reported record revenue of $34,558,560 compared to $17,893,325. Net income for the first three quarters of the current fiscal year has more than doubled to $3,524,218 or $.075 per fully diluted share.

The company’s cash increased to more than $3.5 million including the special escrow for the anticipated new facility acquisition. They are extremely excited to have been able to maintain this healthy cash position while still adding $3.61 million worth of new equipment in the last 12 months with no shareholder dilution or assumption of debt.

The company reiterates the recent guidance update which stated annualized revenue should increase to exceed $44 million. Earnings are also expected to increase similarly.

Please go to www.otcmarkets.com/stock/GATA/financials to view all recent filings for GATA.

In other news the company announced they have purchased a medical incinerator which is designed to destroy type 4 pathological waste and infectious, contaminated “red bag” surgical dressings, plastic test devices and other hazardous medical waste. The benefits to the company from the purchase of this device are:

a) Fast, complete, efficient waste disposal.b) Heavy duty refractory lined (rated 1550 deg C), cylindrical primary and secondary chamber.c) 250 kg capacity per batch load.d) Integral 300 litre fuel tank.e) Primary chamber temperatures in excess of 1000 deg C and secondary chamber temperatures of above 900 deg C with a 2.0 second gas retention time.

The company expects to be able to substantially reduce the cost of their waste disposal as much as 70% by eliminating the need for outside services and incinerating their waste onsite.

In addition to the cost savings associated with incineration of their own internal waste products, they are studying the market in Western India and are developing plans to start their own incineration plant with 3 to 4 additional incineration machines which would allow the company to incinerate over 2000 pounds of hazardous waste per batch load. The company believes that as more medical product development comes to the region and as the Indian population grows, the opportunity to profit in the medical waste remediation industry is extremely promising. Current EPA estimates of medically generated hazardous waste products are approximately 16 to 20 lbs per patient per day in the U.S. and the market is estimated to be $1 billion annually. The Indian population is 3 times the size of the domestic market and is increasing.

About Groupe Athena, Inc.

Groupe Athena Inc. was incorporated in June 2008 and began operations on July 1 of that year. The company is a research and testing organization and helps various pharmaceutical and medical products and devices companies in India and Southeast Asia to get regulatory approvals and facilitate exports of their products to the United States. The Company accomplishes this by assisting clients from concept through development, providing consultation on regulatory requirements, filings and processes.

The company has a research and marketing facility in India that currently employs 16 consultants and marketing personnel and is working towards aggressively expanding its presence in the Indian pharmaceutical industry. The Company’s web address is www.groupeathena.com

The Indian pharmaceutical industry is increasingly focusing on exports to the United States and GATA is well positioned to help them get their products approved by the FDA for sales in the U.S. All of these are potential clients and the Company believes it has an advantage over competitors due to the facilities based in India, and their ability to deliver quick feedback to clients that could result in expedited order generation. With recent additions to equipment, the company will continue to take on additional contracts and continue to anticipate further growth.

For more information contact:Paul CornellCorporate Shareholder Relations, Inc.pcornell@totalpublicrelations.com

Safe Harbor StatementCertain statements set forth in this press release constitute “forward-looking statements.” Forward-looking statements include, without limitation, any statement that may predict, forecast, indicate, or imply future results, performance or achievements, and may contain the words “estimate,” “project,” “intend,” “forecast,” “anticipate,” “plan,” “planning,” “expect,” “believe,” “will likely,” “should,” “could,” “would,” “may” or words or expressions of similar meaning. Such statements are not guarantees of future performance and are subject to risks and uncertainties that could cause the company’s actual results and financial position to differ materially from those included within the forward-looking statements. Forward-looking statements involve risks and uncertainties, including those relating to the Company’s ability to grow its business. Actual results may differ materially from the results predicted and reported results should not be considered as an indication of future performance. The potential risks and uncertainties include, among others, the Company’s limited operating history, the limited financial resources, domestic or global economic conditions — activities of competitors and the presence of new or additional competition and conditions of equity markets.

SOURCE Groupe Athena, Inc.

 

 

www.prnewswire.com


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About John Lux

Former market maker, investment banker, security analyst, author of "How to Find a Home Run Stock," "How the Shorts Raid Your Stock, Destroy Your Company, and What to Do About It," and "How to Pick Hot Reverse Merger Penny Stocks," all available on Amazon.com Contact me at Lux.investor@gmail.com

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GATA: very strong results, increases growth estimates — stock still at a low P/E — BUY!

We recommended GATA for the reasons given in this blog earlier.  Six months results recently announced are very ratifying — Revenues up 231% compared with the same period in 2010, net income up 298% compared with a year earlier, and despite the fact that the company spent $2.2 million on equipment, it still has over $700,000 in cash.

Try to find another stock that can grow this fast without selling more stock! A high growth cash cow.

In fact, management is projecting revenues 10% higher than previous growth estimates.

Yet this stock is selling now at $0.39 although it has earnings annualized at $0.10.

Naturally, this is a steal — a company that is growing like mad at a low P/E.

We reiterate our buy recommendation.

Recall that we have an interest in this stock, see the earlier disclosure.

 

 



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Former market maker, investment banker, security analyst, author of "How to Find a Home Run Stock," "How the Shorts Raid Your Stock, Destroy Your Company, and What to Do About It," and "How to Pick Hot Reverse Merger Penny Stocks," all available on Amazon.com Contact me at Lux.investor@gmail.com

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LPS — glad we covered but still looking for the downside

As I recall, we told you to short LPS at something near $20, then we recently recommended covering LPS short at $14 and change and lo and behold, the stock hits $22.

Somewhere in here the bulls will have to taste LPS’ bitter  reality, but let’s hold off for a sweet entry point on selling more.   Let the bulls give us money on a silver platter.

The stock seems to be rejoicing over the recent mortgage settlement, but we don’t see this as a solution for LPS. Watch and wait.

The stock has a huge institutional ownership and the insiders have been steadily liquidating for some time. As a bear, we like this too.

 



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Former market maker, investment banker, security analyst, author of "How to Find a Home Run Stock," "How the Shorts Raid Your Stock, Destroy Your Company, and What to Do About It," and "How to Pick Hot Reverse Merger Penny Stocks," all available on Amazon.com Contact me at Lux.investor@gmail.com

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LPS short — let’s take the money and run

We recommended LPS as a short because of its robo-signing problems about six months ago at $20. It dropped nicely to about $14 then rallied back to $20 and dropped again. From the buying that came in on the drop (the news was some related indictments) there may be support at this level. Even though I think this thing is an open pit, we have a nice profit, let’s lock it up. It is $14 and change now. Like my father said, “You don’t go broke taking profits.”



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Former market maker, investment banker, security analyst, author of "How to Find a Home Run Stock," "How the Shorts Raid Your Stock, Destroy Your Company, and What to Do About It," and "How to Pick Hot Reverse Merger Penny Stocks," all available on Amazon.com Contact me at Lux.investor@gmail.com

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