December 29, 2013, USA. “On December 29th, Investors Business Daily in the Investors Corner discussed why investors who put their faith in Nu Skin were winners! The ups and downs in the stock market made it s difficult year to pick the right stocks at the right time. And as the IBD article below states, investors had difficulty beating the indexes” said #JeffZisselman. “I have been closely following Nu Skin since I joined as a distributor in 2010 when the stock was at $33/share. Since that time we are up significantly.” Below are excerpts from the #IBD Investors Corner:
How Nu Skin Became A Market Winner Of 2013
By PAUL WHITFIELD, INVESTOR’S BUSINESS DAILY
Rolling action in the stock market meant stock pickers had a tough time beating the indexes in 2013.
Yet, if you know how to use IBD, latching on to a big winner was entirely possible.
Studying such opportunities could help for years to come.
Nu Skin Enterprises (NUS) was one of the big winners of 2013. The stock has delivered a gain of more than 250% so far this year. Realistically, an investor can do quite well grabbing just a part of such a move.
Trying to pick a low or buying blindly at year-end aren’t sound approaches. IBD doesn’t pretend that a disciplined investor can get all of a stock’s big move.
How much of Nu Skin’s gain could an investor have caught by reading IBD and following sound rules? Quite a bit.
On April 22, IBD ran an article with this headline: “Is Nu Skin Set To Refire Fast EPS Growth?” The article pointed out two factors working in Nu Skin’s favor.
First, the company was about to launch a weight-loss system to accompany its anti-aging products. Second, the company was finding fast growth in China.
For investors who put the stock on a watch list, the first opportunity to buy came in July.
On July 10, the stock gapped out of a flat base in volume 690% above average (1).
Supersized volume points to institutions trading the stock. Nu Skin’s average daily volume was about 820,000 shares, but the gap-up drew volume of 7.5 million.
Granted, the gap-up meant that no one could buy at the ideal buy point of 63.45, or even within a 5% buy zone. Yet, a gap-up is one of a few situations where an investor can buy 5% past a buy point.
Also, the market was in a correction, but an investor had only one day to wait for the July 11 follow-through. Nu Skin closed at 76.93 that day.
In subsequent months, the stock flashed no sell signals. An investor could’ve held the stock, adding shares at pullbacks to the 10-week moving average in September and October (2).
The gain from 76.93 at this point is more than 75%. Adding shares on the way up would’ve lowered the percentage gain while adding to the overall profit in dollars.
If an investor had been concentrating a portfolio on four or five strong stocks, Nu Skin could’ve boosted an investor’s portfolio big time in 2013.
Read More At Investor’s Business Daily: http://education.investors.com/investors-corner/684355-how-nu-skin-became-a-winner-of-2013.htm#ixzz2oxC5YANP
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