8 Ways to Separate the Winners From the Losers

If you’re one of those people who are having trouble finding the silver lining in the U.S. economy, where wallets are tightening and gas prices are rising, then you’re not alone.

Wall Street has given many of us a bad case of whiplash with its wild swings, and no one seems to know when the volatility will end. To add salt to the wound, the housing market is still a mess, making more and more banks hesitant to loan money.

The overarching sentiment is that investors feel like they’ve lost control. With the summer driving season fast approaching, gas prices are skyrocketing. Inflation is also inching higher and making basic necessities like bread and milk more expensive.

But what if there were a tool to help you take back control? With a tool that has a proven 8-point system that separates the stock market’s winners from the losers? One that has helped my Blue Chip Growth subscribers close out 2007 with 29.8% gains?

And what if I told you that you could take it for a test drive for 6 entire months risk-free? Wouldn’t you want to take it for a test drive? Well, today, that’s exactly what I’m going to do.

A Sure Thing in Uncertain Times

As many of you may know, I cross the country hosting seminars for individual investors, and can frequently be seen giving market analysis on hit news shows like Bloomberg, Fox News and CNBC. Each and every time, like clockwork, I’m asked same question:

“Louis, how can you be so calm in this economy?”

And each and every time, my answer is always same: My 8-point stock rating system has never steered me wrong.

See, at Blue Chip Growth we’ve spent millions of dollars developing my 8-point rating system. In fact, its selectivity has become the cornerstone of our success–proving beyond a doubt that, as an investor, you can take control and squeeze excessive risk out of your portfolio by investing in superior-performing stocks–recession or no recession.

Measuring Success: Here’s How We Do It

All eight of our measurements of success have been scientifically selected and mathematically weighted to indicate whether a company is vital and growing; how well its products are selling; how fast earnings and cash flow are multiplying; and whether the company can continue to maintain a high level of profitability.

For a company to qualify for our Buy List…> it must score high across all eight of our model variables. Those that display the pinnacle of earnings growth are quickly added to our holdings. Those that can’t meet our precise expectations are simply ignored.

When our system reveals a reversal, the subject stocks are sold, and the profits are then reinvested in new opportunities as they are identified. Here’s a prime example:

Unscathed By the Banking Scandal

Until the banking scandal broke earlier this year, not many investors had ever heard of Countrywide Financial (CFC). Unfortunately, this lender became a household name when it found itself smack dab in the middle of one of the nation’s credit crises. But they were on our radar as a “sell” way before that.

In fact, we sold Countrywide way back in 2004 when our 8-point ranking system detected trouble and avoided much of the losses investors are facing today. Those funds were then reinvested in the likes of Apple (AAPL) and CME Group (CME).

When our system indicated an earnings slowdown at Motorola (MOT) in 2005, we took our 10% loss and rolled out proceeds into the Canadian telecom, Telus (TU) 60 days later. The result? We made an 83% profit in Telus.

It is precisely this pinpointed approach to stock-picking that has consistently rewarded my Blue Chip Growth readers with many outstanding gains, and why we continue to beat the S&P 500 by 3-to-1.

Damage Control: Big-Name Blue Chips to Sell Now!

What we’re witnessing right now is a market rotation out of financials and homebuilders and refocusing on stocks with the best sales and earnings, with the crème de la crème of the stock market rising to the top. But what’s so surprising about this stock market meltdown compared to previous cycles is just who is left at the bottom.

Big brand names like Home Depot (HD), Eli Lilly & Co (LLY) and Sprint Nextel (S) are just a few that come to mind. And believe it or not, there are 254 more big, brand names that investors should be selling right now. I can’t stress this enough: These stocks are going nowhere. And the sooner you get rid of them, the better!

My goal each and every month at Blue Chip Growth, is to help investors avoid the “problem” stocks that plaguing the market. That’s why I put together my latest (and completely free special report, “257 Big-Name Blue Chip to Sell Now.”

Many of the companies I’ve listed are very fine companies. And I’d love to own many of them–but not at these prices and not in this market. “257 Big-Name Blue Chips to Sell Now” keeps your portfolio safe and makes investing simple. After all, life gets simpler when you invest in simply the best.

At Blue Chip Growth, we stake our reputation on every investment we make and will return your money if we fail to meet your expectations. Our goal is to hand our readers 35% to 50% gains every 12 months. It’s a vow I’ve kept for more than two decades. When the numbers say to sell, we’ll do it quickly-profit or loss. We never fall in love with stocks nor do we stick with losers. This is how we’ve beaten the S&P 500 3-to-1 over the past 10 years. With nearly 80% of our current holdings winners, and our average gain 46%, we’re clearly well on our way to meet our 2008 annual goal, proving again that our investment in research continues to pay off for our readers!


Article printed from InvestorPlace Media, https://investorplace.com/2008/04/8-ways-to-separate-the-winners-from-the-losers041808/.

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