Image via WikipediaTHE R&D INDICATOR
The amount of money a corporation spends on research and development is a: good guide to its earnings prospects. Generally, the higher the expenditure in relation to sales, the greater the company’s emphasis on new-product development. Benchmark: 5 % of annual sales spent on research is considered a sizable commitment to research spending. Source: Merrill Lynch Stockfinder Research Service, 165 Broadway, New York 10080.
OPTIONS AS INDICATORS
Often the first sign of a rally in a stock is increased activity in its options. Recommended: Look for newcomers on the “Most Active Options” list in The Wall Street Journal. Then, all you have to remember is …sell high…buy low...Happy climbing!
