Using our model price charts will allow you ‘in a blink of an eye’ to determine whether a stock is a buy, sell or hold.
Some of you heavy users of model price already know this. Newbies your patience will pay off. We are all here together to help. No question is a bad one. Participation will substantially change your market outlook, the stocks in your portfolio (Large cap) with the side benefit of increasing your net worth – maybe – and having a little bit of fun.
As you all know when you log on our Model Price app, our database is preset to the US side of the database (we have two databases one for US stocks the other Canadian) and the first stock that appears is Agilent Technologies Inc. (A-us). I can’t help it but I have been observing this chart in a ‘blink of an eye’ over the months and I find it interesting. Unfortunately there are over 2000 companies in our database and I cannot know all of them but I do look at a healthy number on a weekly basis.
Here is the model price chart of Agilent (A-us) that many of you have seen hundreds of times.
Agilent Technologies Inc. with weekly price bars, EBV Lines (colored lines) and model price (dashed line)
What I find interesting in this chart and teachable by way of a blog post is the way stocks react over a certain period of time. For instance, before last week’s price spike the company spent 7 weeks consolidating an up move in the stock price from the third week of September. This price spike, in September, carried the stock price up to its’ model price. Over the subsequent 7 weeks Agilent’s stock consolidated but our calculation of model price continued its upward – 35-degree – climb. This increasing value gap was finally closed as Agilent’s stock price spiked upward in this last week.
I have been watching this model price chart over the last 7 weeks – as I have been opening our model price app, as you have – knowing that this price spike was going to happen (again high probability NOT certainty) and I ask you; “Wasn’t last week’s stock move predictable?” The stock move was predictable but the timing of the move, of course, was anybody’s guess. At least you could see the ever-increasing fundamentals or the fair market value of the company continually increase on a weekly basis.
The stock price of Agilent was just reacting to ever increasing fundamentals of the company. Our calculation of model price (purple line) clearly showed positive fundamental change while the stock price consolidated.
There are so many ways of making a positive rate of return in your portfolio by using our model Price app. Often times, as I am ‘Speed Charting’, I try to ignore the company name and just look what is going on with our model price chart. Agilent’s model price chart is displayed first because our database is organized on an alphabetic basis and obviously Agilent is the lead company on the US side of our database. Over the span of many months I have been watching value being created in this company and rates of return being made on a stock that probably nobody has ever heard of. That’s the beauty of using our model price app. Often times big profits can be made on the most unlikely companies as you are witnessing the mathematical dynamics – the most important financial dynamics – being played out on possibly random unheard of companies.