The Blue Collar Investor WeBlog

Locating Golden Stocks and Converting them into IMMEDIATE CASH PROFITS!  October, 2007  

Most of the greatest performing stocks are located from the IBD 100 list. Some come from other sources.

One of these other sources is the Stocks On The Move section of the IBD Home Page located @ www.investors.com.

This list gives you stocks that are trading up in price on higher than average trading volume. This is indicative of institutional buying, the main factor in the price of a stock increasing in value.

On October 25, 2007 I noticed that The Mosaic Company (MOS) trading up $2.44 (brought the price of the stock up to $65.50) on a trading volume 210% greater than its average. I decided to run this stock through our system:

  IBD Web Site: 

Overall Diagnosis:        A+

Fundamental Rating:    A+

Technical Rating:         B+

Attractiveness Rating:  A+

 It was also ranked Best in Group in the Chemical-Fertilizers Group.  MSN Scouter Rating: 

Ranked a 10, the best possible ranking, indicating minimal risk and maximum potential for profit.

  Technical Analysis: 

The chart is a thing of beauty. The moving average indicators are confirmed by the MACD, Stochastics, and volume indicators. All indicators are clicking on all cylinders!

     Institutional Interest: 

The Chemical-Fertilizers Industry (Chemical Manufacturing) is ranked in the 87% of money coming in from the big boys. Since these are the people who move the price of a stock (not us- The Blue Collar Investors), it became apparent to me that this was a train I wanted to board!

  Recent News: 

10/24: MOS announced that it was prepaying 150 million of its term loans.

10/17: Announced a positive Earnings Report with an upside surprise.

10/16: Zacks gives MOS a #1 ranking which is the highest rating, indicating a strong buy.

  Calculations (Cashing in on Covered Calls): 

I purchased 300 x MOS @ $65.50

Sold (3) MOS-KM @ 3.50 – This was the November $65 call option.

This generated a 4.6%, 3-week return which annualizes to a 78% annual return. $900 of pure profit was kicked into my account in a matter of a few minutes.

Earning these great returns is NOT unusual if you follow the system and keep your eyes and ears open for these golden stocks. As a matter of fact, I’m going to look for some more right now!

Wishing you the best in investing

Alan