The Superstock Investor: Profiting from Wall Street's Best Undervalued Companies

Customer Reviews

A Superstock is a "stock that has the potential to rise significantly in price regardless of what the general stock market is doing." This will be due to a "specific potential event, or 'catalyst,' usually a takeover bid . . . ." These stocks are selling well below their on-going value as a business but no one cares because they are small and either cyclical or slow-growing.

The book is filled with actual stocks that the authors have picked and followed in their newsletter. The case histories go back over 25 years of special situations, including cumulative preferred stocks suddenly making their payments after having been in arears.

The basic method involves watching factors like takeover activity in an industry, the ownership of 5+ percent institutions through 13D filings with the SEC, insider buying and selling, company share repurchases, and technical trading patterns discerned from charts.

The opening section points out the weaknesses of how most people try to pick stocks. The examples are quite humorous, and will provide entertainment value even to people who do not buy and sell stocks.

The authors are also cautious about making claims. They are trying to give you an additional set of tools, rather than replacing whatever tools you use now. The examples of how to pay attention differently to financial news are very well done.

On the other hand, do be aware that few people are going to have the interest and discipline to learn to use this investing method.

After you finish profiting from this book, I suggest that you think about where else the consensus is usually wrong. What about forecasts of what will happen next politically? . . . with fashion? . . . with the economy? . . . with entertainment celebrities?

Learn to take the conventional wisdom as wishful thinking or the latest, best guess . . . rather than as fact!

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