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Superperformance Stock

The Author suggests using the 4-year political cycle as an investment strategy. And subsequently, he writes about the superperformance stocks of the time, and the common denominators of those stocks.What traits do they have in common, how to find them Definition of a superperformance stock: "One that at least tripled in price and increased at a minimum rate of three times during a two-year period. A move was considered ended if the price failed to reach a new high in less than six months, or if there was a price reaction of 25 percent or more."Stocks that have a chance to become superperformance stocks share some of these characteristics:Large increases of earnings, especially if the large increase comes as a surprise.Mergers and acquisitions.New management.New products.Large increases of earnings and sales are the main reason for a stock to rise substantially. Other reasons come into play as well, as mergers and acquisitions, new management and new products are all in service of providing higher earning power for a company. The market discounts the future, and that might be enough to push the price higher significantly, even though the increase in earnings is not still visible. Ho

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