Fundamental Analysis and Position Trading -- Contents -- Preface -- Acknowledgments -- 1 Introduction to Buy-and-Hold -- What Is Buy‐and‐Hold? -- Who Should Buy and Hold? -- My Numbers: Background and Terms -- Now What? -- 2 Stock Selection -- What Comes After Large Price Moves? -- Myth: Stocks That Drop Least in A Bear Market Then Soar -- Stock Selection the Easy Way -- Two Tips for Stock Selection -- Buy Fallen Angels -- What Chart Patterns Apear Before Mergers and Buyouts? -- Overpaying? -- What Are Insiders Doing? -- Chapter Checklist -- 3 Book Value -- Book Value Defined -- Value Assets Properly -- Investing Using Book Value -- When Is Book Value Important? -- The Value of Hidden Assets -- Limits of Book Value -- Buybacks Lower Book Value -- Historical Research -- Price to Book Value: A Good Measure -- Small Caps: Best Choice -- Low Stock Price Rules! -- Book Value and Return on Equity -- What Is the Best Price to Book Value? -- Combinations and Performance -- Trading Strategy: Beating the Dow -- The Eight‐Stock Setup -- Hold Time for Best Results -- Chapter Checklist -- 4 Capital Spending -- Is Decreasing Capital Spending the Holy Grail? -- Capital Spending Trends versus Performance -- Frequency Distribution -- Performance by Market Cap -- Chapter Checklist -- 5 Cash Flow -- Historical Research Review -- Cooking the Books -- The Numbers -- Is Increasing Cash Flow Good? -- Median Performance -- Performance by Market Cap -- What Is the Best Cash Flow Value? -- Chapter Checklist -- 6 Dividends -- Stock Dividends: An Explanation -- Historical Research Review -- High Yield, High Performance? -- Testing: Yield and Pay out Ratio -- Which Is Best: Dividends or No Dividends? -- Surprise: Dividend Cuts Work! -- When Disaster Strikes -- Performance by Market Cap -- Chapter Checklist -- 7 Long‐Term Debt -- The Numbers -- Is Debt Good?.

Sinking Ship: Taking on Debt -- Debt by Market Capitalization -- Debt-Free Market Caps -- Chapter Checklist -- 8 Price‐to‐Earnings Ratio -- History Lesson -- Do Low P/E Stocks Outperform? -- P/E Trends Down: Good or Bad? -- Price and Earnings Combinations: Yawn -- Buy Small Caps with Low P/E -- High P/E: Time to Sel? -- Three P/E Tips -- Chapter Checklist -- 9 Price‐to‐Sales Ratio -- Good Benchmark: PSRs Below 1.0 -- PSR Trend: Down is Best -- Small Caps, Small PSRs Rule! -- Market Cap versus Sales -- Checklist: PSRs by Industry -- Chapter Checklist -- 10 Return on Shareholders' Equity -- Low ROE Stocks Outperform: Why? -- ROE Trend Over Time: Yawn -- ROE Performance by Market Capitalization -- Chapter Checklist -- 11 Shares Outstanding -- Performance versus Shares Outstanding -- Event Pattern: Dutch Auction Tender Offers -- Should You Sell? -- Sell at What Price? -- Event Pattern: Common Stock Offerings -- Performance and Market Capitalization -- Chapter Checklist -- 12 Fundamental Analysis Summary -- Performance Rank: One-Year Hold -- Performance Rank: Three‐Year Hold -- Performance Rank: Five‐Year Hold -- 13 How to Double Your Money -- How Long to Double? -- What Is the Best Buy Price? -- Which Market Caps Do Best? -- Focus on Fundamentals: Which Are Best? -- Price to Book Value -- Capital Spending -- Price to Cash Flow -- Dividends -- Long‐Term Debt -- Price‐to‐Earnings Ratio -- Price‐to‐Sales Ratio -- Return on Equity -- Shares Outstanding -- Warning: Losses Ahead. What You Need to Know -- Testing the Setup -- Chapter Checklist -- 14 Finding10‐Baggers -- How Long to 10x? -- What Is Highest Starting Price? -- What Happens the First Year? -- Rising Over Time: How Fast? -- 10‐Baggers by Market Cap -- Fundamental Ratios Common to 10‐Baggers -- Price to Book Value -- Capital Spending -- Price to Cash Flow -- Dividends -- Long‐Term Debt -- Net Profit.

Price to Earnings -- Sales -- Price‐to‐Sales Ratio -- Return on Equity -- Shares Outstanding -- Industries Most Likely to Make 10‐Baggers -- The Most Popular Years for 10‐Baggers -- Surprising Finding about 10‐Bagger Losses -- Backward Testing -- Chapter Checklist -- 15 Trading 10‐Baggers -- 10‐Bagger Birth -- 10‐Baggers Start from a Flat Base -- Some 10‐Baggers Prefer a V‐Shaped Start -- Moving Up: A Higher Valley Turn -- Life of a 10‐Bagger -- Weekly Measured Move Up -- MMU Measure Rule -- Two‐Hump Shape -- Trading Humps -- Line Shape -- Rounded‐Turn Shape -- Stair‐Step Shape -- 10‐Bagger Death -- The Numbers -- Chart Patterns in 10‐Baggers -- Head‐and‐Shoulders Top -- Double Top and the 2B Rule -- Triple Top -- Inverted V -- Rounded Turn -- Ugly Double Top -- Chapter Checklist -- 16 Selling Buy and Hold -- The Weinstein Setup -- Stage 2 -- Stage 3 -- Stage 4 -- Testing -- Example: The Southwest Airlines Trade -- Indicators -- Example: Savient Pharmaceuticals -- 1‐2‐3 Trend Change for Downtrends -- 1‐2‐3 Trend Change for Uptrends -- 1‐2‐3 Testing -- The Cloudbank Setup -- Identification -- The Shape of Bottoms -- Investing in Cloudbanks -- The Numbers -- Buying Cloudbanks -- Selling Cloudbanks -- Using Trailing Stops to Sell -- Timely Trend‐Line Exits -- Can Moving Averages Help? -- Follow Insider Transactions -- Selling: Two Ratio Tips -- Selling Down from a High -- Selling Methodology -- Selling Results -- Chapter Checklist -- 17 Fundamentals: What I Use -- Two Book Value Tips -- Do Not Get Singed by Burn Rate -- Drop Capital Spending! -- Current Ratio 2.0 -- Prospecting for Growth Using Dividends -- Rising Earnings, Net Profit -- P/E Ratio versus Industry -- Litigation: Stop Pissing People Off! -- Avoid Too Much Long‐Term Debt -- Market Capitalization: Big Returns by Going Small -- Research Spending -- Sales? Think Money.

Price‐to‐Sales Ratio: What About Debt? -- Stock Price: 5 to 20 -- Volume: Thin Ice Ahead! -- Chapter Checklist -- 18 Introduction to Position Trading -- What Is Position Trading? -- Who Should Position Trade and Why? -- What Position Trading Will Not Do -- Example Position Trade -- Chapter Checklist -- 19 Getting Started in Position Trading -- Check the News or Lose! -- Trend? What Trend? -- Ripples -- Waves -- Tides -- Trade with the Primary Trend -- Take Your Pick: Bottom Fishing or Momentum? -- What Is Market Influence on Stocks? -- What Chart Patterns Are Best for Position Trades? -- Busted Chart Patterns Revisited -- Trading Example: Finding Value in Disaster -- Financials -- The Buy -- The Sale -- Chapter Checklist -- 20 Ten Factors Make Chart Patterns Work -- What Is a Double Bottom? -- Double Bottom Reversals -- Ten Factors Revealed -- Trend Start -- Flat Base -- Horizontal Consolidation Regions -- Position in Yearly Range -- Height -- Volume Trend -- Breakout Day Volume -- Throwbacks -- Breakout‐Day Gaps -- Market Cap -- Scoring System Checklist -- Scoring Performance -- Higher Scores Work Best -- Case Study: Stillwater Mining -- Case Study: LSB Industries -- Case Study: Lumber Liquidators -- Chapter Checklist -- 21 Three Winning Trades and a Funeral -- The Intel Fiasco -- Hudson Highland Hiccup -- Buy More -- CNO Financial Group -- That's a Wrap -- Complete Production Services -- The Exit -- Chapter Checklist -- 22 What Not to Do: Three Botched Trades -- Medivation: Selling Too Late -- Emergency Room -- Coldwater Creek: Selling Too Soon -- Psst. Time to Exit -- Hovnanian: Selling at the Bottom -- Checkout Time -- Chapter Checklist -- 23 What We Learned -- Visual Appendix of Chart Patterns -- Bibliography -- About the Author -- Index.