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john302

07/25/08 9:05 AM

#194 RE: RandyKCMO #193

Looks good to me Randy...The difference between 7 and 9, I guess I could have made clearer.

Rule 7 is company specific. For example a growing microcap electronics store would score higher according to this rule than a growing Halloween costume manufacturer. There is only so big that the niche Halloween costume manufacturer is going to get (no matter how fast it grew the last couple of years), while that tiny electronics store might be the next Best Buy or Radio Shack.

Rule 9 is more of a macro-trend concept. For example with this rule (all else being equal) a small windmill or solar manufacturer would score higher than a bank or retail store as we head into a recession. "Make the trend your friend". This doesn't mean to blindly follow what's "hot", but if you have to decide between two small growing companies, a key deciding factor to their immediate growth potential is the macroeconomic trends of the time. Especially with small companies that often don't have the heft to ride out a storm.


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