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10 traits of a tenbagger
A tenbagger is a stock which has appreciated to 10 times your purchasing price. If you have a few of these you my friend in your investing lifetime will be a legend. The following are 10 positive signs of a stock
1. The company name is dull or even better ridiculous. Such companies tend to be overlooked. The pros of investing will think twice before bragging about their recent investment in "Nyamisira land and avocado company" its sounds way too ridiculous.
2. It does something dull.
3. It does something disagreeable e.g. a company that makes tobacco snus.
4. Institutions don't own it ad it's not followed around by analysts. Such companies haven't been discovered by the big boys which give them an extra potential upside.
5. There is something depressing about it e.g. The burial service company cooperation international.
6. The company's industry isn't growing fast; staling industries aren't prone to competition.
7. Its got a niche (companies with moats).
8. It has reoccurring revenues. The product/service is a subscription or something that is consumed so that the customers are forced to return for more.
9. Insiders are buying. The insiders now more about the company than anyone else. if they are buying you can be pretty sure at the very least the company isn't going bankrupt soon.
10. The company is buying back shares. If a company is buying back shares shows that it has faith in itself.
Ian M. Mugoya