INSIDER BUY SUPER STOCKS - JESSE STINE

Follow Pareto Principal

Top 5 must haves

1) Stock be under $15 (check for your Market)
2) Break out of a strong base,
3) Break out above its 30 week moving average,
4) Show massive weekly volume, and
5) Show a steep angle of attack.

Break out of strong base

(Page 80)
 Stock should have a long base where it is trading in a range for very long time.
 This stock should be fundamentally rising

Break out above its WMA (30)

(Page 81)
 Stock should be above its 30 week MA / stayed above its 30 week MA.
 If stock is breaking out of multi month base, capture the stock near its 30 Week MA
o Powerful stocks start their ascend near 30 Week MA

Volume Expansion
(Page 82)
The Dirty Dozen Fundamental Super Laws
Earnings Winner
Consistent earnings is necessary to have a better performance in upcoming years.
If the new earnings is sustainable – it can be a good indicator.

Are Earnings Sustainable?

The most important question to answer is whether or not this new level of earnings is sustainable.

Important Points:

 Has the company recently started selling a new product or a new product line?
 Has the company embarked upon a sustainable cost cutting/ profitability initiative?
 Does the company have any new customers?
 Has the company recently discontinued an unprofitable division?
 Is there a new industry-wide catalyst affecting sales and profitability?
 Has the company recently merged with another company whose earnings are just starting to hit the bottom
line?