Tuesday, December 13, 2011

Why I Picked this Stock

The goal of this blog is to record what I do to achieve my goal of doubling $10k from my brokerage account in less than one year. So, considering the goal, I am not really interested in diversifying. Ideally, the plan is to pick one stock at a time that will go up more than 30%. If done successfully 3 consecutive times, I would achieve the goal of doubling the account in one year with room to spare. This is the beauty of compounding.

So here's the method; the stock pick is geoy. There are multiple reasons. Its easier if I just list them.
1. geoy was way oversold-the stock was $55 earlier this year, when we bought it, it was $19.03.
2. pe ratio was about 8.5
3. the short ratio was 4.1
4. GeoEye has really good financials, earnings growth has nearly doubled in the last year. Doubled!

so there you go, I'd say those were excellent reasons.

account stands at $11,113

we started yesterday and we are up 11% already.
It's 11:42pm in New York and futures are baby!  


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