Strategic Properties (BEE) and Roberts Realty Investors (RPI) Follow Maguire (MPG)

I've been discussing how investors can use the "Most Price % Change" list published on Yahoo! Finance to find worthy stocks that will start making money for you in the near-term, and hopefully in the future as well.

Of course, not every stock that shows up on the "Most Price % Change" list is investment worthy. It's too harsh to say the majority of stocks that show up on this list are "pump and dumps", but if you watch the list for a while, you'll notice that one day's top gainer is the next day's top lower. In other words, many of the stocks that make the "Most Price % Change" are reacting to news that will only affect the price temporarily.

I lump all biotechs into this category. Of course, that means I miss a few biotechs. But I am not a doctor. I can't speak to how important a particular drug might be. And besides, news from biotechs about the results of a drug trial is never a surprise. Investors are always holding the stock in anticipation of that news. I do not want to be buying while they are selling.

The key to using the "Most Price % Change" list is to be able to discern the relatively few stocks that are moving on fundamentally important news from the majority that are moving on temporarily important news. Trust me, this skill is not instinctual. It can be learned...

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