STOCK GUIDE 2023 Q2

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Stock Guide // 2023 Q2
Whether you’re a recent subscriber or a In the latest edition of Good Trade/Bad
long-time member, we’re willing to bet Trade, we were joined by none other
the Stock Screener has something to than IBD Executive Editor of Multimedia
do with why you use MarketSmith. After (and IBD Live host extraordinaire) Alissa
all, what is a stock research platform Coram, who broke down two of her
without a comprehensive list of filtering most recent trades. Ali walks us through
criteria and customizable data points how she locked in some profits on
intuitively designed to help you sort strength with a leveraged ETF, adding
through trade ideas? to her position strategically while selling
some shares at other times to keep her
This newest edition of MarketSmith’s safety net in the event of a pullback.
quarterly Stock Guide takes a deep On the downside, she wanted some
dive into the power of the MarketSmith diversification in the energy sector
Stock Screener. For our feature article, and made a bold choice with a stock
we’ll walk you through some top tips she admittedly didn’t have too much
and tricks for building a better screen conviction in from the get-go.
while highlighting several existing
MarketSmith screens that you can use As always, if you have any questions
right now. or comments about your investing
research or any MarketSmith features,
For our Q&A, we sat down with Ajay please call one of our product coaches
Jani, Managing Partner and CIO of at (800) 831-2525 or email us at
a New York City-based investment [email protected]. We’re
management firm, Single A Capital, here to help you make more money in
that manages its clients’ capital with a the market.
focus on growth stocks. Having spent
years investing in emerging markets Best returns,
and traveling the world, Ajay has a lot The MarketSmith Team
of experience and insight to bring to the
table in terms of where to find new and
exciting investment opportunities.

MarketSmith.com 2023 Q2 Stock Guide 3

4
Nasdaq Composite
NASDAQ Composite Index (0NDQC) Average Daily Volume 4,989,890,000 Last Updated: 4:00 PM ET 04/21/23 Volume 49,075,300 -2% $12072.46 +12.90 +0.11%
Index
Scale

16212.23
16053.39
15901.47 16000

0S&P5
15403.44

15000
14931.06
14860.04
14646.90
14509.56

14181.69
Market Chart Nasdaq Composite

14000

2023 Q2 Stock Guide MarketSmith.com

13181.09
13094.65 13000

12587.88
12555.35
12320.12 12270.19 12269.56 12227.93

12000
11827.92

11571.64
11492.62

11230.44
11210.38

11035.69 11000
10982.80

10565.14

10262.93 10207.47
10088.83 RS 10000

9.6B
8.2B Volume(00)
8.0B 8.0B 7.9B
7.5B
6.9B 7.0B 7.0B 7.0B
6.7B 6.6B 70,100,000
6.4B
5.8B
5.3B
51,200,000

37,400,000

27,300,000

10 24 08 22 05 19 03 17 31 14 28 11 25 11 25 08 22 06 20 03 17 01 15 29 12 26 09 23 07 21 04 18 02 16 30 13 27 10 24 10 24 07 21 05 19 02
Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun
Quotes delayed 20 minutes. Ownership data provided by Refinitiv and Estimate data provided by FactSet. [email protected] © 2023 Investor's Business Daily, LLC. All rights reserved.

04.21.2023
TABLE OF CONTENTS
STOCK GUIDE 2023 Q2

4 MARKET CHART
FEATURE ARTICLE
6 How to Build a Better Stock Screen
STOCK SCREENS
12 RS Line Blue Dot + Top 40 Industry Group*
13 Ocuphire Pharma (OCUP)
14 TransMedics Group (TMDX)
15 Aldeyra Therapeutics (ALDX)
Q&A
16 Ajay Jani
GOOD TRADE/BAD TRADE
20 Alissa Coram
STOCK SCREENS
26 Magic 8*
27 Lattice Semiconductor (LSCC)
FEATURES HIGHLIGHT
28 Two Tips from the Coaches and Recent Platform Updates

*All screen results are computer-generated and were run on April 21, 2023 unless noted.

CONNECT WITH US

MarketSmith.com 2023 Q2 Stock Guide 5

 HOW TO BUILD
A BETTER
STOCK SCREEN
aking a profitable trade starts well before you place an order
with a broker. You have to identify a stock to buy, research
and evaluate it, then use charts to determine an optimal time to
buy. It’s the first step—identifying a good stock—that can be the
most time-consuming part of the process.

That’s why screening for stocks is so and mutual funds, complete with verified
important: It helps you narrow the and cleaned data. And with over 150
possible universe of choices to a screening criteria, you can be flexible
manageable number, allowing you to and choose from stocks and funds that
focus your attention and time on the fit your investing style.
best of the best.
Here are some tips for getting the most
We designed the MarketSmith stock out of the MarketSmith stock screener,
screener with power and flexibility including how to take advantage of
in mind. The power comes from an preset screens and build effective
enormous database of 35,000+ stocks screens of your own.

6 2023 Q2 Stock Guide MarketSmith.com

 How to Build a Better Stock Screen Feature Article

The Original MarketSmith Screen: The Growth 250

Did you know the flagship Growth 250 list is actually a complex screen? It combines
30 different screens to create a collection of approximately 250 stocks with the best
growth potential, and it’s the basis of many of MarketSmith’s most popular reports,
including Breaking Out Today and RS Line Blue Dot.

If you’ve ever wondered about the “secret sauce” behind the Growth 250 list, it’s
the result of a major undertaking by a team of in-house portfolio managers and data
scientists to capture proven attributes of the best growth stocks.

This list is a great place to start for stock ideas—sometimes, you don’t need to
reinvent the wheel. To open the whole Growth 250 list, click the orange “Open Stock
Ideas” button and select the “Weekly Review” option under either the Uptrend or
Correction tab. You’ll see “MarketSmith Growth 250” at the top.

How to Build Your Own Screen

On the left of any MarketSmith chart,
you’ll see an expandable gray panel
called “Screens, Alerts & Notes.” Click
to expand it and press the “Screens”
button if it is not already selected. Here
you’ll see a few categories you can ex-
pand by clicking, including “My Screens”
(for screens you have created yourself)
and “MarketSmith Stock Screens” (pre-
set in MarketSmith).

For this demonstration, we’ll select “New Stock Screen.” Name it and start adding
your criteria.

Now you’ll see the screen criteria window. You can choose from nine categories of
screen criteria, plus a Favorites tab. Each criterion will have a name you can click for
an explanation, plus tips for using it effectively. Click the star icon to the left of any
screen criterion to add it to your Favorites tab.

As you add new criteria, they will appear on the right side of the screen in the
Screen Summary box. You’ll also see real-time results of how many stocks fit your
chosen criteria as you add them. Stocks that fit your screening criteria will appear in
the list panel at the bottom of the screen.

MarketSmith.com 2023 Q2 Stock Guide 7

Feature Article How to Build a Better Stock Screen

Once you’ve created your screen, you

can click the gray tab at the right of the
screen that says “View Chart” to return
to the MarketSmith chart interface. Your
screen will save automatically, and you
can go back any time to edit it—simply
select the screen and click the “Open
Edit” button just above “New Screen”
and “Browse Screens.”

4 Tips for Creating a Better Stock Screen

TIP
#
1:
SIMPLICITY IS KEY. The MarketSmith screener lets you add over 150 crite-
ria, but that doesn’t mean you necessarily should. At some point, adding too
many criteria can do more harm than good, and you end up excluding good stocks
rather than surfacing interesting ideas for further research.

Don’t use screens to design your perfect stock because chances are you’re not going
to find it or you’ll end up with a very short list of results. If you’re getting fewer than 10
results with your screens, they may be too stringent or have too many criteria.

Think of screening like you’re hiring for a job. Say you want to hire a personal
assistant to handle some of your day-to-day tasks. You decide you want someone
smart and trustworthy with good communication skills. If you post a “Help Wanted”
ad listing the qualifications as an Eagle Scout with a Ph.D. who speaks 7 languages
fluently, you’re not going to get many qualified applicants!

CHANGE THE “SCREEN FROM” ATTRIBUTE. After clicking on the “New

TIP
#
2: Screen” button, click on the blue “Screen from: MarketSmith Database” at
the top and you can change the screening universe from the entire data-
base to any MarketSmith list or report.

Three of our coaches’ favor-

ite lists to screen from are:
Growth 250: This list
already has complex criteria
overlaid, which makes
screening from it like fishing
in a stocked pond.

8 2023 Q2 Stock Guide MarketSmith.com

 How to Build a Better Stock Screen Feature Article

Bases Forming: This list includes all stocks forming bases and within 15% of the
pivot, meaning they’re not extended and are more likely to be actionable soon.

All RS Line New High: This list of all stocks with Relative Strength lines near or at
52-week highs is a great place to find stocks holding up well in bear markets.

INCORPORATE IBD SMARTSELECT® RATINGS. These proprietary ratings incorpo-

rate many of the more granular elements of the screener in an easy-to-use
TIP
#
3: format.

For example, rather than set-

ting a laundry list of minimum
quarterly EPS percentage
changes, you can simply set
a minimum EPS Rating of
80 and you’ll get stocks that
have outperformed 80% of all
publicly traded companies in
terms of earnings per share
growth on both a current and
annual basis.

DON’T FORGET ABOUT

INDUSTRY GROUPS. As the old saying goes, stocks travel in packs. IBD
TIP research has shown that almost 50% of a stock’s price move is due to the
#
4: sector and industry group in which a stock resides. That’s why it can be
helpful to screen for stocks ranked in the top 40 or 50 industry groups (out
of 197 total) when creating a focused screen you can run daily.

If you’re looking for a

less stringent screen
with more results—like
the kind you might run
on a weekend when
you have more time—
you can adjust your
screen to include stocks
ranked in the top 80 or
100 groups out of 197.

MarketSmith.com 2023 Q2 Stock Guide 9

Feature Article How to Build a Better Stock Screen

Sample Screen #1: William O’Neil Checklist + Bases Forming List

This custom list starts with the universe of all stocks currently building a base and
then applies the William O’Neil checklist criteria to filter out stocks that don’t meet
CAN SLIM standards.

To start, make a copy of the William O’Neil

screen by hovering over the screen and clicking
the arrow to the right of the name, then clicking
“Copy” and giving the new screen a name.

Now, in the Screen Criteria window, click “Screen from: MarketSmith Database” and
go to Reports > Stocks > Technical > Bases Forming.

Sample Screen #2:

RS Line Blue Dot +
Top 40 Industry Group
This screen starts with stocks on
the RS Line Blue Dot list (stocks
building a base or breaking out
whose Relative Strength line recently hit a 52-week high) and filters out all but those
in the top 40 best-performing industry groups (out of 197).

Create a new stock screen and name it. In the Screen Criteria window, click “Screen
from: MarketSmith Database” and go to Reports > Stocks > Technical > RS Line Blue
Dot list.

Now click the Industry & Sector tab and go to Item #1, Company’s Industry Group
Rank. Set the Max value to 40 and leave the minimum value blank.

10 2023 Q2 Stock Guide MarketSmith.com

 How to Build a Better Stock Screen Feature Article

MarketSmith Preset Screens: The Guru Checklists

Some of our users’ favorite screens are the preset ones—specifically, the checklists
named for legendary investing gurus. These screens apply criteria favored by six
legendary investors to find stocks that fit their general trading styles:
» William J. O’Neil: This is a great screen to start with. You’ll see how IBD’s founder
selects growth stocks based on his CAN SLIM® Investing System that combines
fundamental and technical analysis.
» Warren Buffett: Based on the Berkshire Hathaway CEO’s value-based investing
model, this screen seeks stocks with long-term past and potential future growth.
» Benjamin Graham: Graham is often called the “father of value investing,” and
this screen emphasizes some of his principles: stocks that are cheap on a PE and
price-to-book basis but still show signs of financial stability.
» Peter Lynch: Lynch is known for his “growth at a reasonable price” buying strate-
gy, which is the kind of stocks this screen is seeking—ones trading for below-aver-
age prices on a PE or PEG basis that are not already widely owned by institutions.
» Martin Zweig: Zweig’s famous avoidance of the most expensive stocks informs
this screen, which surfaces stocks with strong earnings growth and price momen-
tum that trade at lower price multiples.
» James P. O’Shaughnessy: O’Shaughnessy’s “small cap growth and value” ap-
proach is the basis of this screen, which emphasizes small cap stocks showing
strong relative price strength and positive earnings growth that are also trading at
low price-to-sales multiples.

More Resources for Creating Screens

Looking for inspiration for your screen? You can browse over 1,000 publicly available
screens created by your fellow MarketSmith users. Just click the “Browse Screens”
button next to “New Screen” and you can search by keyword, tag or author.

Also, don’t forget: you can access screens from every issue of the MarketSmith
Stock Guide dating back to 2017. Scroll down in the screens menu to “Stock Guide,”
then select an issue to see the coach-created screens. If you want to modify a Stock
Guide screen to make it your own, just click “Copy” and name it whatever you like,
then add or remove criteria as you see fit.

So if you’re ever at a loss in terms of which stocks you should be researching, simply
open the MarketSmith screener. You can use preset screens for inspiration or get
creative and build your own. Good luck and happy screening! n

MarketSmith.com 2023 Q2 Stock Guide 11

Stock Screen RS Line Blue Dot + Top 40 Industry Group

RS Line Blue Dot +

Top 40 Industry Group
This screen starts with stocks on the RS Line Blue Dot list (stocks building a base
or breaking out whose Relative Strength line recently hit a 52-week high) and
filters out all but those in the top 40 best-performing industry groups. It’s a good
screen for leading stocks that are still setting up and may soon be actionable.

Screen created by Matt Loker, IBD Copywriting Lead

COMPANY (SYMBOL) INDUSTRY GROUP COMP RATING

Ocuphire Pharma (OCUP) Medical-Biomed/Biotech 98

TransMedics Group (TMDX) Medical-Products 92

Aldeyra Therapeutics (ALDX) Medical-Biomed/Biotech 90

Harrow Health (HROW) Medical-Biomed/Biotech 89

TG Therapeutics (TGTX) Medical-Biomed/Biotech 86

eMagin (EMAN) Elec-Misc Products 85

Provention Bio (PRVB) Medical-Biomed/Biotech 84

Merrimack Pharm (MACK) Medical-Biomed/Biotech 81

Visit Investors.com/MSStockGuide to load the criteria for this and other

Stock Guide screens directly into your MarketSmith screener.

*All screen results are computer-generated and were run on April 21, 2023. This screen can also be found on
marketsmith.com in shared screens.

12 2023 Q2 Stock Guide MarketSmith.com

 Ocuphire Pharma (OCUP)
Ocuphire Pharma (OCUP) NASDAQ Medical-Biomed/Biotech (28/197) Average Daily Volume 204,100 After Hours Last Updated: -0.99
5:04 PM ET 04/21/23 4:00 PM ET 04/21/23
www.ocuphire.com $5.17 00.00% $5.17 -16.07%
Develops and commercializes therapies for the treatment of s everal eye disorders. Volume 2,042,900 +901%
Year EPS Price($) Price
EPS Rating 63 +32% from Pivot in 14 days
Scale
(Dec) ($) High Low Group RS Rating A
66%
2016 -20.64 203 60 SMR Rating B
2017 -44.16 340 60 Acc/Dis Rating A+
2018 -21.00 129 40 Composite Rating 98
2019 -2.17 79 6 Timeliness Rating C
2020 -5.79 17 3 Growth Rate N/A 0S&P5 6
2021 -1.54 13 3 P/E 8 (0.4 X SP)
2022 0.87 4 1 Mkt Cap $108.3 Mil
-0.20 est.
2023 5.49 N/A 5.50
Shares 20.9 Mil
2024 -0.50 est. N/A Funds 8%

4.44 4.43

4.08
RS Rating
3.92 4
3.89 3.85 99
3.85
3.57 25%
3.50
3.51
3.31
3.19 3.24
3.17
3.10 3
2.80 2.80 2.87

2.59
2.39 2.48
2.20

2.05 2
+ + + + 1.90
1.80 1.78 1.81

89.4M
Volume
*
14,800,000
5.8M
2.6M
2,450,000
1.0M 919,500
792,900 619,200 506,100 421,500 395,400
286,600 227,200
407,000
125,800 102,400
67,400

10 24 08 22 05 19 03 17 31 14 28 11 25 11 25 08 22 06 20 03 17 01 15 29 12 26 09 23 07 21 04 18 02 16 30 13 27 10 24 10 24 07 21 05 19 02
Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun
Qtr Ended March 31, 2022 Qtr Ended June 30, 2022 Qtr Ended September 30, 2022 Qtr Ended December 31, 2022 EPS Due 5/5*
-0.35 vs -0.47 N/A -0.25 vs -0.52 N/A -0.22 vs -0.25 N/A 1.58 vs -0.35 #+551% Earnings ($)

MarketSmith.com 2023 Q2 Stock Guide

N/A vs N/A N/A N/A vs 0.1 -100% N/A vs 0.5 -100% 39.9 vs N/A N/A Sales ($Mil)
N/A N/A N/A N/A N/A N/A N/A N/A Div -- P/E Range
Real-time prices by Nasdaq Last Sale. Real-time quote and/or trade prices are not sourced from all markets. Ownership data provided by Refinitiv and Estimate data provided by FactSet. [email protected] © 2023 Investor's Business Daily, LLC. All rights reserved.

13
RS Line Blue Dot + Top 40 Industry Group Stock Screen

04.21.2023
14
TransMedics Group (TMDX)
TransMedics Group (TMDX) NASDAQ Medical-Products (8/197) Average Daily Volume 496,200 After Hours Last Updated: +9.68
5:06 PM ET 04/21/23 4:00 PM ET 04/21/23
www.transmedics.com -0.82%
$88.00 -0.73 $88.73 +12.25%
Develops portable warm blood perfusion system that allows fo r living organ transplant. Volume 2,076,500 +318%
Year EPS Price($) Price
EPS Rating 53 +6% from Pivot in 1 day
Scale
(Dec) ($) High Low Group RS Rating A+
2016 -1.14 SMR Rating D
2017 -0.99 Acc/Dis Rating C+
2018 -1.13 Composite Rating 92
2019 -1.59 31 15 Timeliness Rating A
2020 -1.16 20 10 83.48
Growth Rate N/A 0S&P5
2021 -1.60 49 17 P/E N/A 80
78.90
2022 -1.23 64 10 Mkt Cap $2856.8 Mil
2023 -0.67 est. N/A Shares 32.2 Mil
2024 -0.04 est. N/A Funds 68%
70.00

64.36
RS Rating
99 60
56.41

2023 Q2 Stock Guide MarketSmith.com

53.33
49.27

40
39.1738.86
35.29 35.38
33.95
32.79
Stock Screen RS Line Blue Dot + Top 40 Industry Group

31.20 31.10
28.24
28.91
25.63
24.01
19.39 20.36 20
17.14

+
13.37
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
10.00

2.4M 2.4M 2.2M

1.7M Volume
*
1.0M 1,160,000
829,700 826,900 773,200
716,000 742,600
572,400
510,800 500,100 563,000
404,000 429,200

260,900 273,000

132,000

10 24 08 22 05 19 03 17 31 14 28 11 25 11 25 08 22 06 20 03 17 01 15 29 12 26 09 23 07 21 04 18 02 16 30 13 27 10 24 10 24 07 21 05 19 02
Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun
Qtr Ended March 31, 2022 Qtr Ended June 30, 2022 Qtr Ended September 30, 2022 Qtr Ended December 31, 2022 EPS Due 5/1*
-0.38 vs -0.29 N/A -0.41 vs -0.39 N/A -0.25 vs -0.47 N/A -0.21 vs -0.46 N/A Earnings ($)
15.9 vs 7.1 +125% 20.5 vs 8.2 +151% 25.7 vs 5.4 +378% 31.4 vs 9.7 +225% Sales ($Mil)
N/A N/A N/A N/A N/A N/A N/A N/A Div -- P/E Range
Real-time prices by Nasdaq Last Sale. Real-time quote and/or trade prices are not sourced from all markets. Ownership data provided by Refinitiv and Estimate data provided by FactSet. [email protected] © 2023 Investor's Business Daily, LLC. All rights reserved.

04.21.2023
 Aldeyra Therapeutics (ALDX)
Aldeyra Therapeutics (ALDX) NASDAQ Medical-Biomed/Biotech (28/197) Average Daily Volume 820,800 After Hours Last Updated: -0.18
5:02 PM ET 04/21/23 4:00 PM ET 04/21/23
www.aldeyra.com $10.02 00.00% $10.02 -1.76%
Developing products for the treatment of immune-mediated, in flammatory, orphan and other diseases. Volume 949,300 +16%
Year EPS Price($) Price
EPS Rating 41 +25% from Pivot in 30 days
Scale
(Dec) ($) High Low Group RS Rating A
2016 -1.65 8 3 SMR Rating N/A
2017 -1.40 11 3 Acc/Dis Rating A
2018 -1.79 16 6 Composite Rating 90
2019 -2.24 12 4 Timeliness Rating C
2020 -1.11 8 1 Growth Rate N/A 0S&P5
2021 -1.07 15 3 P/E N/A 21% 10
9.81
2022 -1.06 7 9.742 Mkt Cap $586.9 Mil
2023 -1.41 est. N/A Shares 58.6 Mil
9.40
2024 -1.06 est. N/A Funds 32%

7.99 8
7.90 7.84 RS Rating
7.59
99
7.19

6.55

5.90 6
5.79
5.56 5.75
5.31

4.95 4.96

4.29 4.37
4.03 4

3.37 3.44 + + + +

3.00 3.08

2.35
13.1M
Volume
6.6M
5.2M
5,150,000

2.2M 1.9M 2.1M

1.7M 1.7M 2,030,000
1.1M 1.0M
917,100 924,700
675,700 721,200 797,000

313,000

10 24 08 22 05 19 03 17 31 14 28 11 25 11 25 08 22 06 20 03 17 01 15 29 12 26 09 23 07 21 04 18 02 16 30 13 27 10 24 10 24 07 21 05 19 02
Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun
Qtr Ended March 31, 2022 Qtr Ended June 30, 2022 Qtr Ended September 30, 2022 Qtr Ended December 31, 2022 EPS Due 5/11*
-0.29 vs -0.25 N/A -0.30 vs -0.28 N/A -0.25 vs -0.27 N/A -0.22 vs -0.29 N/A Earnings ($)

MarketSmith.com 2023 Q2 Stock Guide

N/A vs N/A N/A N/A vs N/A N/A N/A vs N/A N/A N/A vs N/A N/A Sales ($Mil)
N/A N/A N/A N/A N/A N/A N/A N/A Div -- P/E Range
Real-time prices by Nasdaq Last Sale. Real-time quote and/or trade prices are not sourced from all markets. Ownership data provided by Refinitiv and Estimate data provided by FactSet. [email protected] © 2023 Investor's Business Daily, LLC. All rights reserved.

15
RS Line Blue Dot + Top 40 Industry Group Stock Screen

04.21.2023
Q & A A Conversation with Ajay Jani

A CONVERSATION WITH

Ajay Jani
Ajay Jani is a Managing Partner and CIO
of Single A Capital Management, an
award-winning alternative investment
management firm based in New York
City. Having spent nearly two-thirds
of his career in the emerging markets
space, Ajay has gained a wealth of
knowledge of global economies and
markets. began waking up every weekday
morning to watch KWHY Channel 22—at
Today, Ajay uses a flexible and open- 6am! I asked what he was doing, and
minded approach to serve clients he said he was trading options and that
worldwide through Single A Capital, he had made a few thousand dollars in
investing in publicly traded equities a week. My tuition for the entire year
with an emphasis on growth stocks and was less than $1,500, so I immediately
emerging markets. He’s also a long-time decided I wanted in!
MarketSmith subscriber and CAN SLIM-
style investor. I quickly opened an options account,
made money on my first trade, and was
MarketSmith recently sat down with Ajay hooked. I dropped out of Pre-Med and
to discuss what brought him into the switched to International Economics
investment management industry, which with the goal of entering the investment
growth areas investors should look out business. Of course, we know that
for on the horizon and how he uses financial markets are not that easy, and
MarketSmith for his stock research. it has been a nearly 40-year odyssey of
learning and growth since then.
Running a hedge fund is no easy
career choice—what attracted you to I love the game, and I love researching
your career and what keeps you going? new ways to improve my results so that I
It was through serendipity that I can help our clients achieve their dreams.
discovered the stock market. I was
an undergraduate Pre-Med student “Investing in Growth Stocks that are
at UCLA, and my roommate suddenly changing the way we live, work and

16 2023 Q2 Stock Guide MarketSmith.com

 A Conversation with Ajay Jani Q & A

play” is your fund’s motto. What emerging markets macro investor, and
does this mean in your own words, the lessons learned during various
and can you give a few examples of crises I traded through have helped me
stocks like this? tremendously as a growth stock investor.
We are very fortunate to live in a time of
improving living conditions and unlimited You’re a long-time MarketSmith
opportunity. These are the result of subscriber. Do you have any favorite
tireless work by gifted and dedicated features or screens you use when
entrepreneurs who develop the products researching stocks?
and services that make life better. There are several features that make
MarketSmith a great tool. I like the date
We are all familiar with many of these change feature, which allows me to
game-changing businesses that built the quickly go back in time and see what
future—Tesla (TSLA), Block (SQ), Nvidia a leading stock looked like technically
(NVDA) and Netflix (NFLX) are just a on the day it broke out. The ability to
few examples from recent history. Our screen for Relative Strength at New
goal at Single A Capital is to find these Highs is invaluable during corrections.
dynamic companies that are succeeding, The recently added feature showing
build positions in the stocks at the right the directional changes in a stock’s
time, and manage risk while enjoying the ownership by leading growth funds is a
success the company is creating. wonderful timesaver.

How would you describe your There are many significant differences
investing strategy? between institutional investing and
At our core, we are traditional CAN retail investing. As someone who has
SLIM growth stock investors. We done both, what would you say are
demand big sales and EPS growth and the biggest advantages individual
a revolutionary product or service. Bill investors have over their institutional
O’Neil would not be surprised by any counterparts?
of the stocks in our portfolio. Where There are three substantial advantages
we have made improvements to CAN that individuals have over institutions:
SLIM is in our position tactics, risk liquidity, cost and cash.
management and measurement/analysis
of the overall market environment. By far, the biggest advantage is liquidity.
Big institutions sometimes take weeks
After attending business school, I or months to build a stock position or to
devoted the next 20 years of my post- liquidate one. Individuals can do this in
graduate-school career to being an seconds.

MarketSmith.com 2023 Q2 Stock Guide 17

Q & A A Conversation with Ajay Jani

Individuals also have access to world- taking, we patiently wait for things to
class investment tools for a fraction of improve. There are always countless
the cost. MarketSmith is ~1/15 the price risks for people to focus on, but waiting
of some professional research platforms for all risks to disappear is a fool’s
and tools I’ve used. Finally, Individual errand. Instead, we wait until the odds
investors can wait patiently in cash until are in our favor and then manage our
the precise moment that investments risk when we are wrong by cutting our
become attractive. Most institutions losses short.

"There are always countless risks for people to focus on,

but waiting for all risks to disappear is a fool’s errand."

mandate fully invested portfolios, often The market landscape is constantly

confusing activity with adding value to changing, with new and innovative
justify their existence (and fees). businesses emerging regularly. Are
there any new themes or technologies
As we know, investing is tough, and on the horizon that you think investors
no one gets it right all the time. Given should be focused on?
how unpredictable the market’s been AI has been a big market theme for early
this last year-plus, what’s one valuable 2023. My guess is that the providers of
lesson you’ve learned and how will you basic AI software will not end up as the
apply it going forward? big winners—AI will eventually become
The value of cash and doing nothing— table stakes. The real value will be
we spent all of 2022 and the first quarter created by companies that utilize the
of 2023 with ~90% held in cash. This software to create new services that
helped tremendously to cushion our solve big problems.
portfolio. We still had losing trades, but
we cut all of them without exception 3D printing is another interesting
instead of holding on and hoping. “Buy technology. Companies are now printing
and Hope” works until it doesn’t. entire house shells in less than 48
hours— this will introduce substantial
Which market risks are you currently efficiencies to the construction industry.
watching and/or hedging against?
Our hedge is cash. When we cannot find Another game changer is curative
attractive opportunities or the market Biotech. We are rapidly approaching
environment is not conducive to risk the point where the pharmaceutical

18 2023 Q2 Stock Guide MarketSmith.com

 A Conversation with Ajay Jani Q & A

business model will shift from treating that will likely keep them on the radar
patients for life to curing them with a for investors.
single treatment. Upfront costs will be
eye-popping, but the improvement in life I am more optimistic about Southeast
outcomes will be amazing. Companies Asian economies, particularly Indonesia.
wedded to the ongoing treatment model Many of the younger generations have
risk becoming the 21st-century buggy been educated overseas and are now
whip makers. returning to help spur the development of
new businesses with better governance.
Tell us a bit about your thoughts on
emerging markets. Do you see any It’s not a portfolio opportunity for most
advantages/drawbacks to investing in investors, but Sub-Saharan Africa has
overseas companies? fantastic potential. If these nations
When I began my career in EM, all improved their governance, they
markets rose and sank in unison. Since would have the chance to quickly lift
those Wild West days, the situation themselves from poverty. It is the last
has evolved considerably, and for the frontier on earth where capitalism has
better. Each country trades on its own yet to work its magic in a big way.
fundamentals unless there is a global
crisis. And finally, we hear you’re quite the
seasoned traveler. What’s one way
Occasionally, EM will serve up world- that travel has expanded your outlook
class opportunities for U.S. investors on investing and the markets?
like Alibaba (BABA) in 2017 or Baidu I have been very fortunate to have
(BIDU) a decade earlier. I am generally traveled to 60 countries. What I have
bullish on EM, but most of the stocks learned is that people all over the world
are not U.S. listed. In the local markets, want the same 3 things. They want
liquidity is often poor, as is disclosure. freedom, they want to provide a better
The best companies will usually list on life for their family, and they want to
U.S. exchanges, allowing investors to be respected for who they are and the
participate when the time is right. creativity they bring to solving problems.
Since people are generally the same,
What are some emerging markets markets will also exhibit similar patterns.
investors should be eyeing right now? Good investing principles are universal
There is an old joke about Brazil––it when applied in free markets around
is the country of the future, and it the world. n
always will be. Brazil is blessed with an
abundance of commodities, including oil,

MarketSmith.com 2023 Q2 Stock Guide 19

Good Trade/Bad Trade Alissa Coram

Good Trade/Bad Trade

to 3x the daily performance of the S&P
THE TRADER
500) was my best trade in 2021. So I’m

Alissa Coram comfortable holding leveraged index

ETFs over longer periods while knowing
Executive Editor, Multimedia that the same leverage magnifies down-
Investor’s Business Daily side risks.

GOOD TRADE: After the January 6, 2023 follow-through

ProShares Ultra QQQ (QLD) day, I wanted to dip my toe into the
water and gain some broad exposure
The Timeframe: with QQQ. I’ve always been taught
January 2023 - April 2023 that you have to buy something on a
follow-through day, even if it’s a small
Stock Background: I’ll start by saying position. You want to get a feel for the
that I’ve become a big fan of index market and start to receive feedback.
ETFs. They may not move as quickly
as high-octane growth stocks but are a As the market continued to rally to the
quick and easy way to get broad market upside, I wanted to shift to another
exposure. Plus, I like that they trade gear, so I considered buying QLD for 2x
like stocks, which is handy if you don’t leverage. At the time, there was a lot of
want to mess with derivatives like index strength in tech, which is why I wanted
futures. Nasdaq exposure rather than The S&P
500. On the other hand, since we were
Taking this a step further, buying a lev- coming out of a long bear market, I
eraged index ETF gives you a little more didn’t want to jump right into a triple-lev-
“juice” at times when market conditions eraged index ETF like TQQQ.
warrant. They work by moving double,
triple or some other specified amount Technical Picture: With leveraged ETFs,
relative to the underlying index being I always conduct my technical analysis
tracked—that’s the leverage. So, for on the underlying security being tracked
example, if the Nasdaq 100 index rises (in this case, the Nasdaq 100 or the
2% on a given day, the QLD (as a 2x QQQ ETF) rather than the leveraged ETF
leveraged ETF) will rise approximately itself—it’s a more accurate read.
4% that same day.
QQQ retook its 50-day moving average
Coming into this trade, I had found line on January 12—a key indicator of
success trading leveraged ETFs—for strength. I waited to see if it could hold
example, UPRO (an ETF corresponding that level, maybe even retake its 200-

20 2023 Q2 Stock Guide MarketSmith.com

 Alissa Coram Good Trade/Bad Trade

day line. On 1/20, QQQ powered above ably add more if QQQ reverses off its
the 50-day on strong volume—that was 21-day line. I’ll be watching the QQQs for
my cue to start a position in QLD. cues—say that 10 times fast.

My Buy Point: January 20, 2023 at As of this writing, I’m up 27% from my ini-
38.14. I started by buying a half position tial buy and about 15% from my average
of QLD, which for me is 5% of the total cost. If I’m going to have exposure in
value of my portfolio. Since it’s a dou- this new uptrend as we’re making higher
ble-leveraged ETF, I started smaller and lows and the moving average lines are
wanted to see some price progress to starting to turn upward, the worst I can
the upside before building a full position. do is break even on this trade.

How I Held It: I added more shares the I won’t be adding to my QLD position
next day, 1/21, when QLD eventually on strength but rather on pullbacks—it’s
closed up about 4.4%. QLD kept moving something I’ve drilled into my brain, not
to the upside, reaching a bit above 48 just with indexes but also with individual
on 2/2, which meant I was up 26% from stocks. This isn’t quite yet the time to be
my initial buy point in less than two buying into strength; maybe if this turns
weeks. I was tempted to buy more that into a sustained uptrend when we can
day, but didn’t, mainly because the mar- trust breakouts, it’ll be a different story.
ket was getting extended.
My 3 Takeaways:
On 2/13, I added another 2% to the •
Index ETFs aren’t just for passive
position, and then I added yet more investors. If you’re looking to increase
shares of QLD when the Nasdaq pulled exposure early in a new uptrend but
back and touched its 21-day line on 2/17. sector rotation is running rampant, or
At this point, I had built a full position it’s not yet clear who the leaders are,
(roughly 10% of my portfolio), but my having broad exposure with index
average cost was rising. I added more ETFs can really help.
shares on 3/16, at which point QLD •
With leveraged ETFs, you have to
made up 15% of my portfolio. exercise caution. If you are down,
you have to be extra quick to cut bait.
On 4/5, I sold some of my shares to get I wasn’t underwater on my entire
QLD back to 12.5% of my portfolio be- position, so I could hold through the
cause I wanted to lock in some profits on pullbacks.
strength. That would help me feel better •
Wait for confirmation of strength
in the event of a normal pullback, which I after pullbacks. Ideally, you want to
felt was probably due after a big runup. see a strong bounce off the moving
average line and a close toward the
My Sell Point: Haven’t sold yet! I'll prob- top of the range.

MarketSmith.com 2023 Q2 Stock Guide 21

Good Trade/Bad Trade Alissa Coram

BAD TRADE: With LPG, the RS Rating was good and

Dorian LPG (LPG) the RS Line was headed in the right
direction. But it also had its warts and
The Timeframe: warning signs—looking back, there were
March 2023 more red volume spikes (high volume
on a down day) than you’d like to see.
Stock Background: Back in March, a Money was just starting to flow back into
lot of oil and gas transportation and tech, but I wanted some diversification
pipeline stocks were making strong in another sector in case this rotation
moves. I didn’t have much energy proved to be short-lived. If I’m being
exposure at the time, but lots of money honest, LPG didn’t seem like a “True
had been rotating into the area, and I Market Leader” stock in my mind—it was
wanted to be where the smart money more of a trade on strength.
was flowing.
Technical Picture: LPG had a strong
Now, I don’t claim to be an oil and gas move on its previous earnings report (on
industry expert—I tend to favor stocks in 2/1), gaining 11.4% that day and gapping
more traditional growth areas like tech. into a buy zone out of a consolidation
But we often discussed energy stocks base, according to MarketSmith. I
on IBD Live, and in fact, the energy didn’t buy on that gap up day, and it’s a
sector as a whole was the biggest fortunate thing—LPG pulled back pretty
winner of 2022. So during the March hard a month later. Instead of chasing the
move, I was looking for a leading oil breakout, I was waiting for a constructive
stock that had a good technical setup pullback or a new base to form.
and wasn’t already extended. Dorian
LPG looked like the best candidate. Anyway, the stock broke out and didn’t
really go anywhere for a month-plus.
While researching oil and gas stocks, I Then, it sold off hard on two successive
looked at others in the group, like Teekay days starting 3/10, and judging by the
Tankers (TNK) and Torm (TRMD), but they volume spikes on those days, it shook
just didn’t look as LPG did on that day. out a lot of buyers. By the next week,
Dorian looked like one of the leaders it had fallen below its 50-day moving
of the group, and I liked where it was average line into the pink-shaded loss-
trading vs. its moving averages when it cutting zone in MarketSmith. Fine by me,
came on my radar. I also liked that it’s since I wasn’t in the stock—I was just
a U.S. stock and trades here—it’s just watching and waiting.
less complicated for tax reasons (I’m a
millennial and therefore lazy). If you see a stock sell off and then it
takes a long time to get back above its

22 2023 Q2 Stock Guide MarketSmith.com

 Alissa Coram Good Trade/Bad Trade

key moving average lines, just slowly My Sell Point: March 23, 2023 at
wedging upward on low volume, that’s a 20.47. Two days after I bought LPG, I
major sign of weakness. Since it hadn’t encountered a total expectation breaker
spent long below its 50-day line (only a in the price action. The stock actually
few days at that point), that looked okay started the day up a percent and
to me. change, but by midday it was just getting
crushed. LPG kept going down, so at the
My Buy Point: March 21, 2023 at 21.47. end of the session, I sold out my entire
On March 21, the stock gapped up back half position near the low of the day.
above its 50-day line in volume that was That’s always fun.
on track to be higher than average—
both good signs and a buy signal for me. My 3 Takeaways:
I was buying at 10am ET, not too long •
Better early than late. I would much
after the market opened. Suddenly the rather regret selling too early rather
stock was back above its 50-day and than selling too late. I’d choose the
21-day lines, which is a very good sign. former every time. I can watch a
I bought a half position (5% of my total stock go up without me and feel fine
portfolio value), and if it had continued to about it.
show strength, I would have added more •
Check your level of conviction.
shares to make it a 10% position. Looking back on it, I just traded LPG
based on the chart action without
How I Held It: LPG very quickly being a true believer in the stock.
reversed—it was down a percent and •
Be choosy during a correction. At
a half the next day, then almost 4% the the time of this trade, we were not in
next. The intraday charts, my goodness a confirmed uptrend per IBD’s market
did they look ugly. The stock never timing rules. I should have been extra
triggered any specific stop-loss that I set, extra selective about finding the
but since the market was in correction at strongest stocks. n
the time and we had yet to get a follow-
through day that would signal the start
of a new uptrend, I was intent on cutting
losses quickly. I didn’t have a lot of
conviction in this company, and in fact,
I didn’t know much about it. So I had no
hard feelings about potentially getting
out early if this trade continued to go
against me.

MarketSmith.com 2023 Q2 Stock Guide 23

 ProShares Ultra QQQ (QLD)

Sold quarter position

Good Trade/Bad Trade Alissa Coram

24 2023 Q2 Stock Guide MarketSmith.com

Follow-through day Add
Add
First buy: 38.14
Add

Add Add–now 15%

of portfolio
 Alissa Coram Good Trade/Bad Trade

Sell: 20.47
Buy: 21.47
Dorian LPG (LPG)

MarketSmith.com 2023 Q2 Stock Guide 25

Stock Screen Magic 8

Magic 8
Forget that prognosticating billiard ball–this screen has a much better chance
of helping you locate potential winners. The eight criteria in this screen select
for strong fundamental and technical characteristics, while the 8% range around
the 50-day line means that these stocks may be potentially buyable on a
pullback or break above a resistance level.

Screen created by Alissa Coram, Executive Director, Multimedia, Investor’s Business Daily

COMPANY (SYMBOL) INDUSTRY GROUP EPS RATING

Lattice Semiconductor (LSCC) Elec-Semicondctor Fablss 99

Arista Networks (ANET) Computer-Networking 98

Palo Alto Networks (PANW) Computer Sftwr-Security 97

Dynatrace (DT) Computer Sftwr-Enterprse 97

WW Grainger (GWW) Machinery-Tools & Rel 95

Broadcom (AVGO) Elec-Semicondctor Fablss 95

Fiserv (FISV) Financial Svcs-Specialty 95

Quanta Services (PWR) Bldg-Heavy Construction 94

Visit Investors.com/MSStockGuide to load the criteria for this and other

Stock Guide screens directly into your MarketSmith screener.

*All screen results are computer-generated and were run on April 21, 2023. This screen can also be found on
marketsmith.com in shared screens.

26 2023 Q2 Stock Guide MarketSmith.com

 Lattice Semiconductor (LSCC)
Lattice Semiconductor (LSCC) NASDAQ Elec-Semicondctor Fablss (1/197) Average Daily Volume 1,633,800 After Hours Last Updated: -0.35
5:02 PM ET 04/21/23 4:00 PM ET 04/21/23
www.latticesemi.com $90.40 00.00% $90.40 -0.39%
Designs programmable logic devices/gate arrays for OEMs in t elecom, computing, consumer and industrial Volume 1,028,900 -37%
Year EPS Price($) Price
EPS Rating 99 +18% from Pivot in 62 days
Scale
(Dec) ($) High Low Group RS Rating A+ 96.82
2016 0.14 7 4 SMR Rating A
2017 0.11 7 5 Acc/Dis Rating B-
2018 0.33 8 5 Composite Rating 99 92.55
2019 0.59 21 6 Timeliness Rating A
2020 0.69 46 13 Growth Rate 61% 0S&P5 90
2021 1.06 85 37 P/E 52 (2.7 X SP)
2022 1.75 79 43 Mkt Cap $12.42 Bil 87.76
2023 1.44 est. -18% 85.45
Shares 137.4 Mil
2024 1.75 est. 22% Funds 73%
81.47
79.99 80

76.47 RS Rating
97

70
68.76
68.65

65.50 66.03
65.42

62.57 62.28
60

56.67

54.37
53.14 53.25

50.71 50
49.82
+
- - - - - - - - - - - 47.04
- - - - - - - - - - - - - - - - - - - - - - - 47.71
- - - - - - - - - - - -
44.33 44.52
43.59 43.41

17.1M
Volume

7,850,000
5.3M 4.9M
4.2M
3.3M 3,620,000
2.6M 2.8M
2.1M 2.2M 2.4M
2.1M 1.9M
1.7M 1.9M
1,660,000

766,000

10 24 08 22 05 19 03 17 31 14 28 11 25 11 25 08 22 06 20 03 17 01 15 29 12 26 09 23 07 21 04 18 02 16 30 13 27 10 24 10 24 07 21 05 19 02
Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun
Qtr Ended March 31, 2022 Qtr Ended June 30, 2022 Qtr Ended September 30, 2022 Qtr Ended December 31, 2022 EPS Due 5/1*
0.37 vs 0.22 +68% 0.42 vs 0.25 +68% 0.48 vs 0.28 +71% 0.49 vs 0.32 +53% Earnings ($)

MarketSmith.com 2023 Q2 Stock Guide

150.5 vs 115.7 +30% 161.4 vs 125.9 +28% 172.5 vs 131.9 +31% 176.0 vs 141.8 +24% Sales ($Mil)
N/A 47 - 83 N/A 36 - 55 N/A 34 - 50 N/A 31 - 46 Div -- P/E Range
Real-time prices by Nasdaq Last Sale. Real-time quote and/or trade prices are not sourced from all markets. Ownership data provided by Refinitiv and Estimate data provided by FactSet. [email protected] © 2023 Investor's Business Daily, LLC. All rights reserved.

27
Magic 8 Stock Screen

04.21.2023
MarketSmith Features Highlight

FEATURES HIGHLIGHT

Two Tips from the Coaches

and Recent Platform Updates
Two Tips from the Coaches
1) Don’t forget about the “Premium List” feature when
you’re customizing the Related Information tab. This
allows you to see which MarketSmith reports a given
stock is currently on and the date it was added. If a
stock has appeared on multiple reports, that’s usually a
sign of strength.

Open up Related Information panel on the right-hand

side of any stock chart then click on “Edit” >>> choose
“Create New Tab” >>> type in any name for the new
tab and hit “Enter” on your keyboard >>> then check
the box for “Premium List” at the bottom and hit “Save.”
Click on the new
tab you created
within the panel
and you’ll see all
the MarketSmith
reports that have
recently added
the current stock
you’re viewing.

2) A good way to
track high-quality
institutional sponsorship is the IBD Mutu-
al Fund Index, an index of 20-25 of the top
diversified mutual funds as determined by
the editors of Investor's Business Daily. If you
type in symbol 0MUTI (zero-M-U-T-I), you can
open up the Related Information panel and then

28 2023 Q2 Stock Guide MarketSmith.com

 Features Highlight MarketSmith

see the funds currently in the IBD Mutual Fund Index. Then if you click on any of the
funds, you can see the fund’s profile, their performance and their holdings. This is a
good way to track funds that interest our in-house experts and put their holdings on
your own watchlist.

Recent MarketSmith Updates

Recently, the MarketSmith team completed a host of backend updates to make the
platform faster and more reliable. This means faster chart loading times and a better
overall website experience. We’ve also integrated better trading volume sourcing,
which means that volume data is more up-to-date for both stocks and indexes. You
can also access intraday charts for indexes, an oft-requested feature.

Moreover, we’re now using FactSet data

for EPS, earnings and mutual fund objec-
tive criteria, which should provide you
with more accurate estimates and fund
investment objectives.

Last but not least, we expanded the

MarketSmith database, which means
a larger universe of possible stocks to
choose from when you screen for trade
ideas. n

MarketSmith.com 2023 Q2 Stock Guide 29

© 2023 Investor's Business Daily, LLC. All Rights Reserved.

Investor's Business Daily and IBD are trademarks owned by Investor's Business Daily, LLC. MarketSmith and CAN SLIM are registered
trademarks of O'Neil Capital Management Inc.

The material contained herein is not to be reproduced, redistributed, published, stored in a retrieval system, or transmitted in any form or by
any means, electronic mechanical, photocopying, recording, or otherwise, without prior written permission of Investor’s Business Daily, LLC.

The content presented herein has been obtained or derived from sources believed to be accurate. Certain data is provided by William O’Neil
+ Company Inc. Investor’s Business Daily, LLC. and its licensors do not guarantee the accuracy or completeness of the content. The content
is based on the study and interpretation of available data as it relates to our historical models of the best performing stocks. This is not a
prospectus and no effort on our part or the part of our licensors with respect to the sale or purchase of any securities is intended or implied.
The content presented is for educational purposes and is not and should not be construed as a recommendation or rating to buy or sell any
security. It is possible that as of the date of publication or some subsequent date the officers, directors and/or shareholders of Investor’s
Business Daily, LLC., its affiliates, and licensors, own securities or buy or sell securities listed herein or those not mentioned.
GOT
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Product Coaches are here to help. Best of all, this service
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STOCK GUIDE 2023 Q2

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