Playboy model holds this past week’s best performing stock
Today’s
PowerRatings article looks at the best performing stock for the past five
days– Pacific Ethanol
(
PEIX |
Quote |
Chart |
News |
PowerRating). This selection also happens to
be held by our
TradingMarkets/Playboy 2006 Stock-Picking Contest Leader- Amy Sue Cooper who has a 68.67% return so far on this position.Â
The chart below shows that PEIX had declined in 7 out of the past 11 days
starting at the beginning of this month. Then on 8/15/06 PEIX had a
PowerRating of 8, suggesting it was likely to outperform the S&P 500 over
the next five days.
Over the next five days PEIX
gained 21.59%.
Chart appears courtesy of Bloomberg.
From 1995-2005, stocks rated 7 have outperformed the S&P 500 by a better than
4-1 margin over a five-day period. Stocks rated 8 have outperformed the S&P 500
by a better than 8-1 margin; stocks rated 9 have outperformed the S&P 500 by a
13-1 margin, and those stocks that have achieved a 10
PowerRating have
outperformed the S&P 500 by a 16.9-1 margin.
Over the same test period (1995-2005), stocks with a PowerRating of 1, 2 or 3 have underperformed the
S&P 500 over the next five-days. The 1’s have performed 4.9 times worse than the
S&P 500, the 2’s have performed worse than the S&P 500, and the 3’s have only
managed 90% of the S&P 500 performance.
You can
attend a free
class on how to use
PowerRatings,
presented by Steve Primo, our Director of Education.
Click here
to take a free trial of
PowerRatings.
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