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Welcome to...
GHL
STOCK
ALERT!
My
name is Gary C. Halbert and I am about to reveal the
details to you of three low-priced stocks I believe
have a tremendous upside potential. I, myself, have
purchased shares in each of these companies.
However,
that does not mean you should invest in these
stocks. Just because I believe the price of a certain
stock is going to go up, doesn't mean it is a dead
certainty which will turn out to be true. There are
always factors in the near and distant future which
are virtually unknowable before they manifest
themselves. Therefore, you should never invest
any money in the stock market if the loss of that
money would cause you undue discomfort or
inconvenience. If you invest in any of these stocks,
you could lose part or all of your investment.
But,
you could also make a bundle!
I'll
reveal the names and details of my three stock picks
for this month just a few paragraphs from now. But
first, it will be useful if you understand a little
about why I have chosen to invest in these particular
three stocks.
First,
I have a rule for myself and, that rule is...
Buy Only Stocks Listed
On One Of The Three Major
Stock Exchanges!
The
reason for that rule? Simple: You see, I realize I'm never
going to make any money by buying
stocks. I'm only going to make money when I sell
my stocks. And, when I'm ready to sell, I want to make
damn sure whomever wants to buy can easily find quotes
and other details of the stocks I want to sell. In other
words, I have no interest (at least currently) in
messing around with any stocks... unless... they are
listed in the Wall
Street Journal,Barron's or Investor's
Business Daily.
Believe
it or not, that rule alone eliminates hundreds of
thousands of stocks. Here in America, aside from the
three major exchanges, you can buy OTC
(Over-The-Counter) stocks, "pink sheet" stocks
(ask your broker if you're interested) and stocks from
all sorts of other sources. You can also buy stocks
listed on the Toronto Exchange and all the European and
Asian exchanges.
Not
me. I buy nothing that's not listed on the NYSE, AMEX or
NASDAQ.
My
second rule is...
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Only Buy Stocks
That
Have The Potential To Gain
50% Or More In One Day! |
I've
done a lot of research because I wanted to know what
made this small, elite group of stocks (there are 300 to
500 of them every year) different from all the thousands
of other stocks which have never enjoyed this type of
spectacular daily
gain. Here's what my preliminary research seems to
indicate: Of all stocks which gained 50% or more in one
day of trading...
Only 6.2% Were
Stocks Listed On
The AMEX Exchange! |
No AMEX stocks for me.
At least, I don't spend any time researching them right now. Mushing on, I
also discovered...
Only 4.9% Of The
Top Daily Gainers Came From
The NYSE!
So, at
least currently, I don't research NYSE stocks either... because... the plain
fact of the matter is...
88.9%
Of All The
Big Daily Gainers
Come From The NASDAQ!
Now, let's talk about price. Of all NASDAQ stocks that gained
50% or more in price in one day...
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Stocks priced at $1.99 or less represented 44% of the
big daily gainers.
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Stocks priced from $2.00 to $2.99 represented 25.8% of
the big daily gainers.
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Stocks priced from $3.00 to $3.99 made up 12.6% of the
big daily gainers.
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Stocks priced from $4.00 to $4.99 made up 3.5% of the
big daily gainers and...
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All
Stocks Priced
$5.00 Or More Represent Only
13.9% Of The Big
Daily Gainers!
So, here's what I've decided so far: I'm (at least for now)
only going to concentrate on stocks on the NASDAQ which are selling for less
than $5.00. This selection criteria alone has eliminated me having to examine
99.9% of all stock market investment opportunities.
But, my friend, we ain't done yet. Not by a long shot. Just
because a stock is selling for less than $5.00 and listed on the NASDAQ
doesn't mean it makes the cut. Nope, all we've identified here is the
"preliminary pool" of stocks we are even willing to look at. There
are numerous other hurdles even
these stocks have to overcome before they qualify as a "pick."
The first of the next hurdles is volume. If a stock has a very
thin daily volume, just the fact you invest in that stock will make it
skyrocket in price.
Conversely, if the daily volume is too high, way too
much of a mountain of money has to be moved to effectuate a 50% or more jump
in price.
If you are at all active in the stock market, you are already
aware of the success of a small group of stock market experts (they really
are) who have an informative website and write books on a how a "Motley
Fool" should invest in stocks. I recommend their material since it's very
informative. Here's an eight item checklist they use to select stocks worthy
of further examination:
| 1. |
Sales of 200 million... or
less!' |
| 2. |
Daily dollar volume of trading three million dollars... or
less! |
| 3. |
Low share price between
$5.00 to $20.00. They maintain stocks priced at less than $5.00 are "junk." I disagree. |
| 4. |
Net profit margin of 10%
or more. |
| 5. |
Relative Strength (study
Investor's Business Daily to
learn what this means) of 90 or higher. |
| 6. |
Earnings or sales growth
must be 25% or greater this year than it was for the same quarter last
year. |
| 7. |
Insider holdings must be
at least 15%. |
| 8. |
Cash-flow from
operations must be a positive number. |
All in all, this is a good checklist. My criteria are a bit
different but, not too much. However, there's something I consider much
more important than all of this put together. Namely:
I Want
The Companies I
Invest In To Be "Newsworthy"!
As I wrote in last month's issue of my newsletter it is...
NOT... some good or bad development which makes a stock price go up or down?
As I said, "It is the NEWS of some
development, not the development itself, that affects stock prices?"
You know what is so great about many of those smaller,
low-priced publicly-traded companies? Not only does a low-priced stock have
more "growing room," many of them remain unexamined by the big
institutional investors who are insurance companies, pension funds and mutual
funds. They can't afford to mess with those "little" stocks. First
of all, there are more mutual funds than stocks (I find that rather
amazing) and often, one day's trading in a given mutual fund is more than ten
times the entire value of a small or micro cap company. Many of those small
companies have spectacular "news" relatively no one knows about.
Like a company called Longport which has a portable skin scanner a doctor can
use to detect skin cancer in seconds... before
it is visible... and without a
biopsy.
By the way, I have not
invested in Longport because it is not traded on any of the three major
exchanges. But, if it was, I would invest in it... because... not only
do the stocks I invest in have to get through my price parameters, volume
parameters and all the other hurdles...
They Must Also Have
A Terrific And Mostly
Untold Story!
Plus, these have to be
stories... that... I have reason to believe the mainstream investment
publications are about to "discover."
OK, now that you know
all that, here are the stocks I've invested in this month:
STOCK
#1:
| Company |
Ticker |
Exchange |
Cortex Pharmaceuticals, Inc.
(An
Alzheimer's Breakthrough?) |
CORX |
NASDAQ |
This is a neuroscience company focused on novel drug therapies for
neurological and psychiatric disorders. Recently, a patent application has
been filed entitled "Facilitation of AMPA Synoptic Transmission in Brain
as a Treatment for Schizophrenia."
One
of the three inventors is Gary Rogers, Ph.D. who is the
Vice President of Pharmaceutical Discovery at Cortex.
AMPALEX(R)(CX516)
is the first compound in the AMPAKINE class to be
administered to humans. The drug is currently the
subject of three Phase I/IIa clinical trials. Anyway,
here's what I, Sir Gary of Halbert, find especially
exciting...
AMPAKINES Are Also Being
Investigated For Potential Utility
In The Treatment Of Alzheimer's!
In
fact, there is currently in progress a Phase I/IIa
clinical trial at the NIH for that
indication! And, according to numerous scientific papers
AMPAKINES can increase performance on memory tests in
humans and animals. Plus, these memory enhancing effects
can be measured... within
minutes... of
administration.
I
don't know about all this. I'm not a scientist. However,
this company seems to be dead serious about their
research... and... if their research pays off, I think
there's gonna be a world-wide news flash that will skyrocket
the price of the stock.
Maybe
it'll happen; maybe not. All I can tell you is, after a
lot of research, I'm convinced their stock is a good
bet.
We'll
see.
STOCK #2:
| Company |
Ticker |
Exchange
|
Endocare, Inc.
(Prostate Disease
Relief!) |
ENDO |
NASDAQ |
This
company develops, manufactures and markets innovative,
minimally invasive surgical technologies which literally
freeze
cancerous tumors. It was recently revealed how this
revolutionary temperature-based technology is being
applied to treat prostate cancer, the second most common
cancer in all men, and cancer of the liver. Recent study
results from Douglas Chinn, M.D. of Southern
California's Alahambra Hospital revealed...
96% Of His Patients Who
Have Received This Monitored
Temperature-Based Treatment
For Prostate Cancer Over The
Past
Three Years... REMAIN CANCER
FREE!
They're
doing a lot of other incredible stuff but, this is the
part that made me decide to buy their stock. Do you know
how many men get prostate cancer as they age? It's up to
80%! Do you know how many "Baby Boomers" are
turning 50 every day now?
Do
you realize... aw hell... it's your money. Do what you
think is best. Don't follow my lead (I'm a
"controlled" risk-taker) if doing so will take
you out of your own personal "comfort zone."
How's
that song go? "We
may lose or we may win... but... we'll never be here
again..."
STOCK
#3:
| Company
|
Ticker
|
Exchange |
Semiconductor Laser
International Corp.
(A New
Cutting-Edge Laser!) |
SLIC |
NASDAQ |
CEO
and President Dr. Geoffrey T. Burnham has been quoted as
saying, "I believe we are on the verge of a sales-breakthrough which will
lead to the placement of a number of very large
production orders. We expect these orders will be
received from some of the world's largest corporations
looking to employ our unique technology in their product
lines."
It's
no wonder. At the 11th Annual Diode Laser Technology
Review Conference (that sounds like a fun group, doesn't
it?) held in Albuquerque, New Mexico, Semiconductor
Laser International presented a poster paper showing
overall conversion efficiency of 56% for an 808 nm high
power semiconductor diode laser operating at 25 degrees
Celsius, which represents... the highest efficiency ever
obtained by anyone at these operating temperatures.
This
is space-age technology with potential uses for
automotive, dental, medical, telecommunications,
optical, data storage, DVD Printing, and military
applications. In fact...
This Company Has Reached
This Level Of Laser
Efficiency In
Less Than One Year...
Which...
Their Competitors With A
Combined Total
Of 24 Years Of Research
Have Still Not Achieved!
Whatever.
Once again, it's your call.
OK,
that's it for now... except... for some legal stuff you
ought to know. First, I am NOT a Registered
Investment Advisor. I do not give individual investment
advice. None of the info you've just read is an offer or
solicitation of an offer to buy or sell any security. I
believe the sources from which I got all this info are
reliable... but... I can't guarantee that to be true.
Even though some of this info came from the companies
themselves, I have no personal or business connections
to these companies whatsoever.
One
other thing: I've been publishing a very elite
newsletter continuously for the last twelve years
cleverly called The
Gary Halbert Letter. You might be interested in my
newsletter but, probably not. First of all, with a
subscription price of nearly $3,000 some people say it's
the most expensive monthly publication in history.
Secondly, I do not make info about my newsletter
available via the Internet. If you want to know what
it's all about, why it's so valuable and why it's read
in over 50 countries, you'll have to call my office and
give us your name, your real address and phone number.
Then, after we are convinced you are a real
honest-to-God human being who doesn't have to hide
behind a computer, we'll send you a few sample issues
and you can decide for yourself whether or not it's for
you. Also, we don't use an 800# so you'll have to pay
for the call yourself. If, after knowing all this, you
are still interested, you can call
us at (305) 534-7577 anytime, 24-hours-a-day,
7-days-a-week.
Please
note this website is all text. No bells and whistles. No
graphics. No photos. I hate all that crap. All it does
is slow me down when I'm doing research. I hope you feel
the same way. If you want great graphics, go to Disney.
If you want great info, come to me.
By
the way, the info on the three stocks will be removed
from this website at midnight on Tuesday, June 30, 1998.
Hang
in there. Just remember...
Things Always Look
Darkest Just Before They
Go Totally Black!
Sincerely,
Gary C. Halbert
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