I believe this was the 12th meeting since I started attending the CANSLIM Pittsburgh IBD Meetup Group. This was the one I had been waiting for. We had a guest from the Syracuse Meetup group that just blew me away with his knowledge and experience. For the first time since I started attending, I felt like I needed to do a lot more work to keep up with someone. Generally I leave the meetings feeling like I’m working harder than anyone there….not tonight….and I find that incredibly motivating. This was the first time in a long time that I talked about the market with someone and came away feeling like I had a lot to learn.
I learned a new method for formulating a price target. He suggested multiplying the PE ratio at the breakout time the current annual earnings or the sum of the past four quarters earnings time 2.3 because growth stocks generally grow 2.3 times the market. I had never heard this before, but it makes sense and I can not wait to experiment with it.
My new friend also pointed out that he had been following TFM for some time and that it is poised to potentially be the next Whole Foods. I found this fascinating. I was also interested to hear how he held his positions far longer than I believe I could stand. We had a brief discussion about how difficult it would be to hold through the shakeouts in the stocks featured in Bill O’Neil’s weekly column.
I also was completely convinced tonight that I need to subscribe to Market Smith. I think I’m going to sign up for the free trial tomorrow and then purchase it when the trial expires. My number one focus above everything else needs to be my continued stock market education.