ANDE — this week’s best performing PowerRatings’ stock
Today’s
PowerRatings article looks at the best performing stock for the past five
days– The Andersons, Inc.
(
ANDE |
Quote |
Chart |
News |
PowerRating).Â
As the indices have been rising to recent highs in early September, our
PowerRatings list of
Stocks To Avoid (or shortable stocks for the more aggressive trader) has
grown to over 40 stocks. Here is one of the best performing short stocks
over the last week.
The chart below shows that ANDE had a nice rally from the
mid $30’s up to $42 area lasting from 8/22/06 to 9/5/06 . Then on 9/06/06
ANDE had a
PowerRating of 3, suggesting it was likely to underperform the S&P 500 over
the next week.
Over the next four days ANDE dropped 14.01%.
Â
From 1995-2005,
stocks with a PowerRating of 8 have outperformed the S&P 500
index on average by an 8.3-to-1 margin, while a PowerRating of 10 doubles that
performance to 16.3.
PowerRatings also help indicate a stock’s
downside as well as timely short-sale entry points; PowerRatings of 1 and 2 have
on average lost money over the next week. A PowerRating of 1 typically
underperformed the S&P 500 by a 5-1 margin. Obviously, you should ideally be
looking to buy high PowerRating stocks and avoid (or short) low PowerRatings
stocks.
You can
attend a free
class on how to use
PowerRatings,
presented by Steve Primo, our Director of Education.
Click here to
try
PowerRatings for yourself, risk free.
Darren Wong
Associate Editor
Want a free month of PowerRatings?
Send us your PowerRatings
strategy and receive one free month of this exciting trading tool. If you are
already a monthly or annual PowerRatings
subscriber, you will receive an additional three months if we publish your
strategy.
Reminder: We are in no way recommending the purchase or short sale of these
stocks. This article is intended for education purposes only. Trading should be based on your own understanding of market conditions,
price patterns and risk; our information is designed to contribute to your
understanding. Controlling risk through the use of protective stops is critical.
Â