What are the current top three stocks to invest in?

Brooks: What are the current top three stocks to invest in?
I am doing a school project and I need to find three stocks to make an investment in, but i just cant seem to find any good stocks? Can anyone help me?

Answers and Views:

Answer by Common Sense
If it was so easy…. everyone would be rich. Here’s some ideas (by symbol);

IMAX
UTX
SYK
VCLK

Answer by Ajit Singh
this are the 3 stocks you can buy for 2 month target,
subex at current level,uflex & sesagoa

for more info mail to [email protected]

Answer by Stock Analyst
1) Reliance: Reliance is one of the building blocks of stock exchange. and is one of the most stable and giving regular dividend therefore the chances of risk is low.
Moreover it is giving you enough entry and exit points in a certain price range. Enter ard 910 and exit ard 1050/1120.

2) IFCI: This stock is having a good support ard 47 and good resistance ard 56.

3)Tatapower: Again same reason good support at 1220 and resistance ard 1340/1370, plus technicals also supporting.

Answer by KIRKUK
Servicesource International (SREV)
ELong Inc (LONG)
China Unicom International (CHU)

Answer by John W
Unlike school real life doesn’t have grades, there isn’t any such thing as the current top three stocks to invest in. There are a multitude of opinions as to the prospects of various companies and a multitude of metrics whereby people try to measure the performance of such companies but there is no top three. Unless you have a time machine, you can only try to assess the probabilities.

Investing is about risking the investment. There is a chance that you’ll make money and there is a chance that you will lose money. Your loss is limited to that of your investment, you can lose no more than what you’ve paid for the stocks. That limited liability is a key advantage because you don’t have to put everything you have into the investment.

Imagine a coin toss where if you win, you win twice your wager plus the return of your wager and if you lose , you lose your wager. So this is an opportunity where you can hand over a dollar bill and there’s a 50% chance that you will get $ 3 back and a 50% chance that you’ll get nothing back. It’s a money making opportunity, in the long run you should receive $ 1.50 for every $ 1 lost. How much should you wager with each coin toss? If you wager nothing, you guarantee that you’ll win nothing but you also guarantee that you’ll lose nothing, the more you wager, the more you can win but if you wager everything with each toss, you lose everything with the first loss so at some point, the opportunity becomes a money losing opportunity as you increase your wager. What is the optimal wager for the growth of your portfolio? This is called the Kelly Criterion and it maximizes the geometric mean of outcomes. For the coin toss, the optimum is 25% of your available capital but having only 25% of your money invested doesn’t seem like an efficient way to use your resources. Now if you had the opportunity to wager on two such coin tosses at the same time, as often as you’d like then the optimum is 23% on each coin toss and hence 46% of your money would be wagered. That’s the effect of diversification, you invest slightly less on each opportunity but more of your portfolio can be risked. You still never risk your entire portfolio as long as there is the remote possibility of losing all investments. Ben Graham says to invest 45% in stocks, 55% in bonds and to never go below 25% invested in stocks and never above 80% invested in stocks. Claude Shannon at MIT did a mathematical proof that a 50/50 portfolio was optimal if the chances of the stock going up was equal to the probability that it will go down (the efficient market hypothesis).

The most consistently successful strategy is to try and identify undervalued stocks (bargains). This is because thousands of prospects can be quickly screened by various metrics of performance that should be indicative of value. However there’s usually a reason for the stock to be undervalued compared with the fundamentals and that usually deals with the prospects that it faces. Hence you can screen for investment candidates but then you must research each candidate to try and find out why it may be undervalued and make a judgement as to whether or not the company has the resources and skills to overcome those challenges and in what time frame. A quick value screen is available for free from “magicformulainvesting.com” which implements Joel Greenblatt’s ranking system. Joel is the author of “The Little Book That Beats The Market” and has fairly convincing statistics to back his methods. Keep in mind that Joel says to diversify across 30 investments buying into two or three a month and to only hold each for exactly one year which is probably much longer than your class. However, you may want to use the screen for some ideas.

School stock projects are horrible because of the time frames involved. The timeframe doesn’t allow for any strategy and very little time for a company’s prospects to change for the better. These school projects teach little more than gambling.

Personally, I think they should set up a mock trading floor, having students play the roles of specialist, floor traders brokers and investors so that they see that the prices are the result of a process not something that is set like the prices at Walmart.