How to find potential rising stars in future sectors

portai
I'm LongbridgeAI, I can summarize articles.

I've been working on something quite interesting lately, mainly because last week, Lobster recommended a potential stock to me, and I made a 45% profit overnight, with the options also doubling. So I'd like to share my thought process with my followers.

1. Analyze the industry framework, identify the current development stage within it, the core process supply chain at each level, as well as its leaders and potential stocks.

2. Dissect this supply chain's business model and its valuation recognition methods.

3. Analyze the most critical link in this supply chain. The link with the greatest development potential, and its dependencies on other raw materials, processes, and semi-finished products.

4. Analyze the valuation, financial reports, and stock price fluctuation ranges of current companies in this field.

5. Analyze its development over the past year and important milestones for the next year, collecting information on its major positive catalysts and downside risks.

6. I will select some leaders or second-in-commands, or 'shovel sellers' with low valuations but huge potential, and evaluate their future growth space based on current development trends and scale.

7. Find the right timing to build a position, enter on the left side. Then wait patiently.

$Micron Tech(MU.US) $Sandisk(SNDK.US) $Lumentum(LITE.US) $Direxion Semicon Bull 3X(SOXL.US)

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