Call the broker and ask him what he knows. This is one of the current popular issues so he has loads of information and starts rattling off P/E ratios, gross margins, book value, growth statistics of the company and its industry and all about the various executives. He will send you the green sheet, the pink sheet, the prospectus, the annual report and a special report by his brokerage company.

You even heard the CEO of the company interviewed on CNBC-TV. He seemed like a nice straight forward guy and answered all the question the talking head asked.

You also order a report from Morningstar. It is 57 pages on slick paper in full color and only costs $19.95. They are also throwing in free their newest 5-Star stock selections called “10 Stocks to Own In 2007”.

You now have information up the Wazoo and know everything there is to know except one: if you buy it will it continue to go up.

Your research has been impeccable. You have done everything Wall Street wants a prudent investor to do except think. Yes, think.

It is a proven psychological fact that the more a person studies something the closer become his ties to it. You have more information than the first 3 volumes of the Encyclopedia Britannica.

Think about all that info and realize that everyone in the world knows this. Does any of this research affect the price of the stock? Yes, to a certain extent. The hype does bring in new buyers to help push the price higher. Many do not remember that Enron was on every brokerage buy list the day before it crashed into oblivion.

Everything the investor sees is history. He does not know what is going on today. Don’t expect any corporate executive being interviewed on TV to tell investors any negative facts as he does not want his share prices to decline. Do we know if he is telling the truth?

Investors cannot know if the sales and earnings will continue, but they can look at the price action of the stock. If the trend is up that is all they need to know. If the trend is flat or down it does not take a rocket scientist not buy it or to sell it if he owns it.

Proper research will show the investor the trend. Once a trend is established it usually will remain for a substantial period of time. Using the Internet a five year chart of the price action will show trends with most important what the equity has been doing for the most recent year.

Don’t fall for hyped research statistics or stories about events that might happen and don’t become enamored of information that is found. Analyze. Think.

Al Thomas' book, "If It Doesn't Go Up, Don't Buy It!" has helped thousands of people make money and keep their profits with his simple 2-step method. Read the first chapter at http://www.mutualfundmagic.com and discover why he's the man that Wall Street does not want you to know. Copyright 2006 All rights reserved.

Copyright 2007 Albert W. Thomas All rights reserved. Author of "IF IT DOESN'T GO UP, DON'T BUY IT!"