Trader Mike

“SkyGuy” left this comment on my post about high-priced stocks:

I disagree about low-priced stocks! $5 stocks have the highest profit potential of any stock out there. The reason is that this price level is where small companies make the jump to big companies. It’s the best part of the growth curve in terms of revenue and profit acceleration.

If Google brings in $4 bil of revenues this year, how much longer can it continue to double its revenues? Not much. OTOH, a small restaurant chain with a $4 stock with 30 stores can easily double rev’s by franchising another 30 stores.

There are 40 stocks in the $1.50 to $7 range that have outperformed Google this year.

This comment is a …

I’m always amazed at how often I hear people say that they can’t afford “expensive” stocks. When they say “expensive” they really mean high-priced, as in price per share as opposed to truly expensive based on P/E ratio or some other valuation metric. So these same people would be all over the stock if they simply split the stock so that the price per share was lower. That logic befuddles me because it’s still the same stock with the same valuation. I guess the same people that go nuts over stock splits also are thrilled when they break a $100 bill into five 20s.

The way I see it, if you can afford to buy one share …

I got an answer from StockCharts.com about their QQQQ data but I’m still not happy!