“Stalking the Tenbagger,” Lynch called this process.[18] The way Lynch explained things, if you liked a stock but other professional investors did not own it, this was a good sign; when the others woke up, their enthusiasm would drive your stock higher. By the same logic, if you liked a stock and Wall Street analysts did not cover it, this too was a good sign: shares were most likely to be mispriced when nobody was scrutinizing them. Finally, in an uncanny premonition of Shleifer’s China calls, Lynch listed a third important buy signal. When chief financial officers tell you that they haven’t
...more
