Las Vegas Sands will have resistance at $46.35 and is a buy on a break above this level. Many traders have set their liquidity filter at such high level that they don’t even look at some of the best opportunities in market. Then when something changes either in its business or in external environment it surprises the market by coming out with good earnings or new product news or some game changing catalyst. Then try out the new Relish Store trendy boutique Checker. There will be “Episodic Pivot” and then liquidity will just explode and persist for months or years. There are lot of academic studies that have studied this phenomenon and they show the returns on low liquidity stocks tend to be higher than the returns on high liquidity stocks. Unknown and little followed stocks will be the next big winner. If you go through all the stocks that make 100% plus move in a year from their 52 week low and compare the stocks liquidity 1 or 2 years prior to its 100% plus break, in cases after cases you will see the stock was trading minuscule number of shares per day and when it starts moving up liquidity follows.
This table uses Float Turnover to highlight these stocks. stock Turnover Ratio is a measure of 10 day average volume/float. So there is lot of demand for stock. A low liquidity stock can become very liquid once there is a catalyst. The same stock that has been trading minuscule number of shares per day can quickly become liquid stock if a catalyst like earnings or something appears. Now this same stock has traded on an average 845000 shares in last 10 days. This stock can be traded but don’t hold over night. It does happen and by making smart investments when the companies first come upon the market or even when the time is right based on economic situations you can stand to make a much profit when you sell the stocks. However, you have to know what the important point of the market is so that you can avoid making the wrong decisions and lose your hard-earned money.
A stock which topped out and is going lower can also have very high float turnover ratio. IBD will every Thursday publish a small table with stocks with high float turnover ratio. stocks with higher Turnover ratio are in demand. That is why IBD puts that table in the newspaper every Thursday which shows stock Turnover Ratio. As a general thumb rule if a stocks float turnover ratio increases significantly, it shows higher demand for stock. This happens day in and day out in neglected/virgin stocks. Check out my CVM Technical Analysis. Read on to find out more about the opportunities that exist from working in this way and how you can make it work for you. How did a bloke who has enjoyed a lot of his life, got divorced, got lawyers involved in his private life managed to be in the envious position of not having to work if he doesn’t want to – I don’t see that happening really – and is about to make a leap into the “unknown”? Ambulances easily rank among the most costly of any facility’s capital expenditures, and for the years of service expected of them it really pays in the long run to assess each make and model carefully to ensure the choice that is right for you, your facility, and most importantly your patients.