How To Make Money In Stocks.

Introduction:
Learning from the Greatest
Winners

In the following chapters, I will show you exactly how to pick more big
winners in the stock market and how to substantially reduce your losses
and mistakes. I will examine and discuss other Investments, as well.
In the past, most people who bought and sold Stocks either had
mediocre results or lost money because of their clear lack of knowledge.
But no one has to lose money.

This book will provide you with most of the investment understand-
ing, skills, and methods you need to become a more successful Investor.
I believe that most people in this country and many others through-
out the free world, young and old, regardless of profession, education,
background, or economic position, can and defmitely should own com-
mon stock. This book isn't written for an elite but for the millions of lit-
tle guys and gals everywhere who want a chance to be better off.
YOU CAN If you are a typical working man or woman or a
START SMALL beginning Investor, it doesn't take a lot of
money to Start. You can begin with as little as
$500 to $1000 and add to it as you earn and
save more money. I began with the purchase
of just five shares of Procter & Gamble when
I was only 21 and fresh out of school.

You live in a fantastic tinie of unlimited opportunity, an era of out-
standing new ideas, emerging industries, and new frontiers. But you
have to read to learn how to recognize and take advantage of these
extraordinary Situation<<.

The opportunities are out there for everyone. You are now witnessing
a New America. We lead the world in high technology, medical
advancements, Computer Software, military capabilities, and innovative
new entrepreneurial companies. The communist socialist System was
finally relegated to the ash heap of history under Ronald Reagan and
our System of freedom and opportunity serves as a prime success model
for the majority of countries in the world.

It is not enough today to just work and earn a salary. To do the things
you want to do, to go the places you want to go, to have the things you
want to have in your life, you absolutely must save and invest intelligent-
ly. The second income from your Investments and the net profits you
can make will help you reach your goals and provide real security.
SECRET TIP #1 The first Step in learning to pick stock market
winners is for you to examine leading winners
of the past to learn all the characteristics of the
most successful Stocks. You will learn from this
observation what type of price patterns these
Stocks developed just before their spectacular
price advances.

Other key factors you will uncover include what kind of Company
quarterly-earnings reports were publicly known at the time, what the
annual earnings histories of these organizations had been in the prior
five years, what amount of stock trading volume was present, what
degree of relative price strength occurred in the price of the Stocks
before their enormous success, how many shares of common stock were
outstanding in the capitalization of each Company, how many of the
greatest winners had significant new products or new management, and
how many were tied to strong industry group moves caused by impor-
tant changes occurring in an entire industry.

It is easy to conduct this type of practical, commonsense analysis of
past successful leaders. I have already completed such a comprehensive
study. In our historical analysis, we selected the greatest winning Stocks
in the stock market each year (in terms of percentage increase for the
year), spanning more than 40 years.

We call the study The Record Book of Greatest Stock Market Winners.
It covers the period from 1953 through 1993 and analyzes in detail over
500 of the biggest winning companies in recent stock market history:
super Stocks such as Texas Instruments, whose price soared from $25 to
$250 from January 1958 through May 1960; Xerox, which escalated
from $160 to the equivalent of $1340 from March 1963 to June 1966;

Syntex, which leaped from $100 to $570 in only six rnonths during the
last half of 1963; Dome Petroleum and Prime Computer, which respec-
tively advanced 1000% and 1595% in the 1978-1980 stock market;
Limited Stores, which wildly excited lucky shareowners with a 3500%
increase between 1982 and 1987; and Cisco Systems, which advanced
from a split-adjusted $1.88 to $40.75 between October 1990 and March
1994. Home Depot and Microsoft both increased more than 20 times
during the 1980s and early '90s. Home Depot was one of the all-time
great performers jumping twentyfold in less than 2 years from its initial
public offering in September of 1981 and then again climbing another
10 times from 1988 to 1992. All of these companies offered exciting
new products and concepts.

Would you like to know the common characteristics and secret rules
of success we discovered from this intensive study of all past glamorous
stock market leaders?

It's all in the next few chapters and in a simple easy-to-remember for-
mula we have named C-A-N S-L-I-M. Write the formula down, and
repeat it several times so you won't forget it.

Each letter in the words C-A-N S-L-I-M Stands for one of the seven
chief characteristics of these great winning Stocks at their early develop-
ing stages, just before they made huge profits for their shareholders.
You can learn how to pick winners in the stock market, and you can
become part owner in the best companies in the world. So, let's get
started right now. Here's a sneak preview of C-A-N S-L-I-M.

C = Current Quarterly Earnings Per Share: How Much Is Enough?
A = Aimual Earnings Increases: Look for Meaiiingful Growth.
N = New Products, New Management, New Highs: Buying at the Right Time.
S = Supply and Demand: Small Capitalization Plus Volume Demand.
L = Leader or Laggard: Which Is Your Stock?
I = Institutional Sponsorship: A Little Goes a Long Way.
M = Market Direction: How to Determine It?

(Excerpt from William O'Neal's How to make money in stocks.)