52-Week High Stocks

Another strategy for finding stocks to evaluate is to look at the 52-week high list.

But, hold on. Doesn’t that violate the rule against buying high? First, that rule only applies to stocks that have been artificially bid up by some type of market over-reach.

You can find those on the 52-week high list, but they are easy to spot and eliminate (a stock whose price has jumped 30% in one day).

You are looking for stocks that have shown steady growth over a long period to earn their way on to the list.

When you identify these stocks, begin your evaluation. The market has done much of your work by rewarding the company with an escalating stock price, but don’t stop there.

http://stocks.about.com/od/advancedtrading/a/Winners042805.htm