An Example Of Our Secret Proprietary Forecasting Model!
For example, in April 2003 we noticed that Tractor Supply (TSCO), one of the market leaders was setting up a nice reverse head and shoulders pattern as the rest of the market was also setting up a breakout. A lot of pundits claimed the rally off the October low was over, but the market indicators were telling us things were setting up for another move higher. Certainly TSCO was telling us that with great accumulation in a solid pattern. A breakout would also put it back near its split price for a run into the next split announcement. This ‘one-two’ punch of a great pattern and a stock nearing its next split date is a recipe for profit. TSCO broke out at 42.50 and we moved in with stock and options. By the time the announcement came in July TSCO had rallied to 52.50 and we had a nice 80% gain in our options. With the announcement it shot higher and we took a 157% gain on those options and a 50% stock gain. Then we turned around and moved back in ahead of the split, bought some more stock and more options, and wound up with a 115% gain on one option play and a 300% gain on another. We sold all our options but still hold some of the stock, not wanting to cut off a long term winner that has made us a 100% long term gain on top of the option plays. Leaders, technically correct buy points, stock split strategy, profits. That is what we focus on.
The beauty is we can repeat this formula over and over from sector to sector and from market to market. We play the pre-announcement move based on good technical indicators. We get a good move even if the split is not announced! When the split does come the icing is sweet. On Harman International we jumped in early on a good technical chart. We logged a 115% option gain before the split was announced. The split announcement came and HAR charged higher. 52% on the stock position, and another option position on the pre-split run logged another 140% gain. Again, this scenario of leaders, technical indicators, and stock splits produces again and again. HOTT, CECO, JBLU, CELL, COH, URBN, IGT. These are just some of the split plays we forecast and profited from recently.
We Follow Strong Companies So You Can Profit!
It is critical to understand stock splits as well as the market and good technical indicators. Again, the Stock Split Report focuses on strong companies in strong sectors. Forecasting the exact date of when a company will announce a stock split is, obviously, very difficult. By following strong companies, and entering positions when the stock is showing a strong technical pattern, we give ourselves the additional advantage of being able to profit from our position even regardless if a split is announced or not!
Our Stock Split Report will have you following several well-known companies as well as some up and comers you may not know well but whose returns will endear them to you, days and even weeks before our target date for an announcement. This information will allow you to position yourself in the event a run in the stock occurs on the days leading up to the forecast announcement date. We discuss the key technical aspects of the stock to determine what we feel is the best entry point for a trade, and invoke various strategies for entering and exiting positions on stock split announcements forecast in conjunction with earnings, or shareholder or board meetings (in fact, some great trades are closed out or entered into just minutes before our projected announcement time). We share this information with our subscribers so they have plenty of time to execute the strategies as they see fit.
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