A primary stock attribute I seek is change. In uncertainty lies opportunity and the chance to catch lightning in a bottle. Greenblatt hit the nail on the head with his
best book, "You can be a Stock Market Genius." A stagnant company leads to a stagnant stock so you should be searching for change. Look for the opportunity. Follow the money.
Big change is risky for a highly priced stock but at necessity at the lows. A small company dependent on a single product will be forced to rethink everything if their customers find something new. When a major customer moves on a company will scramble to survive. Companies will try new products, acquire new businesses, sell to a competitor.
Big change leads to big stock movement and that's what I'm looking for. Imagine a stock at a 35 year low cut in half over the past year. Big change becomes almost binary, either the stock will go to nothing or it's a major win. Hard to imagine much in between and the next step is is examining the change.
Environmental Techtonics Corp. (
ETCC) is undergoing change in majority shareholder ownership. In Sept 2017 they announced a
review of strategic alternatives and the stock shot up from $0.60 to $2. In Aug 2018 the 54.1% majority owner Gerry Lenfest died and in
Oct 2018 his long time Lenfest Group CFO, Joy Tartar, took a seat on the ETCC board. The stock has drifted back to $0.60...sound interesting?