How to find a 10 bag stock

[shawFund]

Rethinking 10-bagger stock:


When we are talking about 10 bag-stocks, have you ever thought about sticking to one stock: buy-and-sell few times and make 10-times of gain even the stock did not move up at all?

Further more, do you believe that after you bought a stock and it lost 90% value in a matter of few months and you can still make 10-times of gain by trading that stock?

That is exactly what I did and did it in my ROTH IRA account.

That is my story:

On 2/18/2004, I bought 2,400 shares of SCON at $5.28, an investment of $12,682.

Right now it is a $0.70 stock. 87% lower than my purchasing price. But I already gained about 500% by sticking to this stock.

After I bought it, it crashed and reached a low of $0.80 in three months. I did not panic and did not take a loss either.

trade 1: Instead, I sold it when it rebounced to $1.60 (100% gain from its low) on 06/05/2004 for about $4,000

trade 2: Later, I bought it back at $0.80 and sold it one month later at $1.40, $4k->$7k.

trade 3: Bought it again at $0.80 and sold it at $1.60 one month later: $7k>$14k.

Now I am positive on my investment in three trades.

$0.80 was its all time low since it went  public in 1993.

After the company reported poor result at the end of 2004, the stock tanked and broke down $0.80 for the first time in its history and reached a low of $0.37!!

trade 4: It rebounced from there and formed a double bottom. I bought it at $0.44 and sold it at $0.66 (50% gain). $14k->$21k.

trade 5: Buy it on pull-back $0.52 and sold it again at $0.83 (63% gain). $21k->$34k.

trade 6: Buy it the third time during its run up at $0.65 and sold it at $1.10 $34k->$57k.

trade 7: (Half trade) Now I bought it again at $0.69 and hope to sell it before the year end at $1.40.

If things go as expected, the 57k will become $114k, almost 10-bagger from $12k investment in Feb, 2004 in just 7 trades in two years.

Another fact: since 1993, no year-high is less than $5.00, except this year.

2005 year-high is $1.40.

[shawFund]

SYNA made a quick move up today before the closing.

Good news is comming?

Couldn't be happier than this.

[shawFund]

Exited my position on SYNA at $19.50 today.

Bought it on 8/8/2005 at $15.80 and sold it today. Hold it for one month.

Gain: 23%

The money will be used to buy STX tomorrow.

[irod]

ShawFund: Your SCON story is unbelievable! Thanks for sharing! You were very lucky I guess with this very volatile stock. Can't imagine this can be reliably reproduced, you never know if it might crash back down to 0.37 when you think it's on it's way back up, therefore losing all you've gained in one year! But interesting and inspiring nontheless. How did you know when to buy and when to sell? Seems almost psychic-like!

[shawFund]

Hi, irod:

Thank you for your interest on SCON.

Actually trading SCON is much easier than what you thought. 6 trades in two years.

Simple TA and fundamental will do it.

Look at the two year chart:



I mainly trade it based on:

1. KD (18,5) indicator , sell whenever KD(18,5) reached oversold and the price doubled from its low.

2. Important support level - buy at support. $0.80 is their all time low from 1993-2004. It is not surprised to see that there are many buyers whenever it dropped to $0.80.

3. If the price goes up so fast and gained 50% or more in few days, sell it. It is going to have a pull-back. That is one of IBD 8 sell rules.

The price crashed Dec 2004 because the management gave very dark picture of this company. Revenue only 4.5 million and $0.80 support is clearly not going to stand.
I gave up on SCON.

HOWEVER, things changed when the new CEO and VP for sales took over the company in Feb 2005.

Also they pre-announced revenue of $8.5 million for 2Q 2005 in April 2005.

So, you need to have both fundamental and technical to guide your trading on SCON.

[shawFund]

Update on my holdings:

I am very happy I sold SYNA yesteray at its high. $20 is the strong resistance. 23% gain in one month.

Bought STX this morning on dip at $16.25.

[irod]

Thank you! That is very informative and educational, and just made me want to learn more about TA. I appreciate it! *Applaud*

[ritastruts]

I do not know how to find 10 baggers, the risk is astronomical, and what is the time frame?
If I had to only shoot for ten baggers right now I would roll the dice with TAG, as I have myself, I have doubled down, and am waiting the thirty days to sell an earlier position I took much higher.  I feel very comfortable with Rita as a sure 3 bagger, and $20 is possible within two years.  look for NAVR, PXG, MTMD to rise about 80% in the next year. JAKK is probably good for 50%.  VIRL could double to triple up as well.  Good luck and sleep well

[shawFund]

It is not easy to find 10-bager stock but possible. This site already found three 10-bag stocks.

AMRE.OB is one. It gained 1100 in 4 days (3StocksOnFire)
VPHM is another one (May 7 - $1.70 stock -> $17.30 now) in 4 months
HYRF.OB may be the third one (already up >400% in one month) see 3Penny Stocks on Fire.

The key is the fundamental improvement, good new products, hard for other company to enter. Those two agreed with the requirement.

Of course, it needs a lot of time to find one. But it is worth the effort.

I have learned a lot of new stuff here.

[malam69]

shawfind:

since I am new to TA and still learning, wuld you mind explaining what is KD indicatior and which stock charting software you can find it? Is it the same as fast or slow stochastics? do you use this indicator as a selling signal for all your stocks?

Thanks in advance!