A Primer On Stock Selection Part 2

- Stock repurchase plans, or buy-backs, can lift the price of a stock.  Buying a stock before the repurchase program is announced should result in a nice pop.
 One problem with stock buy-backs however is the company could use the money to make acquisitions, perform research, or make any number of investments.

- Here's something not to do:  don't buy a stock of a company you know nothing about in the name of diversification.  Stick with what you know.  If you have a concentrated portfolio, its not necessarily a bad thing.

- Again, study each new pre-IPO that is going to be listed on the NYSE or NASDAQ.  Try to determine which newly listed companies have the best chance. It's tougher than is sounds to choose a long term winner. 

- If you're looking at a company that is unprofitable, you obviously want to determine if the co will ever be profitable.  If you buy shares of a company losing money and then if news hits the firm is now in the black, I bet your shares popped a lot. 

- Make sure the companies and funds you research have demographic or other trends at their backs.