Red flags and green flags make reference to the wakeup calls an investor gets based on the negative or positive experience that is encountered when working with a publicly traded company as a customer. When you get three of these flags in a row, it can be a sign to buy or sell the company’s stock.
Here are some real-life good examples where these flags were elevated. A few months ago, Jim Cramer made a recommendation on his show regarding Coldwater Creek (CWTR). THEREFORE I kept flipping through the catalog and thought to my partner “Well maybe I can find a present for you in here,” and she replied for your mother “Maybe.” Uh oh.
So I said “So what’s wrong with the clothes?” and she said “Just look at them. There’s no style to them. Day The next, on November 30, I sold-out my position at 24.87, and the stock downward kept slipping. 20 per share on January 23, and has stayed below 20 ever since. These three warning flags saved me from losing another 22% with this stock. By the way, I didn’t write this about Coldwater to slam Cramer.
As a matter of fact, the majority of Cramer’s suggestions that I’ve applied have proved well. Now let’s reach some positive flags. A long time ago, while I worked as a stockbroker/financial planner, I put a lot of my clients’ money into the Franklin Government Securities Fund and the Franklin California Tax Free Fund. The firm I was … Read more