By Mike Marsh
(Resources and Topics Related to Article Include stock picking, stock picks, stock tips, hot stock picks, stock advice)

Here’s what I mean per Peter Lynch about cyclibles..You see where a company produces still good growth in an earnings report but haver lower margins YOY–Wall Street will bring estimates down and you wait till the stock trades down..Wall Street will establish margins down over last year and lower earnings estimates in the future..Then you cherry pick the stock knowing commodity prices being on the low-end will rise–so you buy..

He stated if its a good fundamental stock and a low P/E stock (low P/E low and low top end PE range)..You would buy at its top end P/E range…Buy after depressed prices after seeing margins are decreasing (it was due to seasonally low pork prices)..Then you buy the stock on a downtrend of price..Then since estimates are reduced by Wall Street hold through a few earnings as Pork prices invariably rise and the company will then hopefully smash earnings as pork prices rise..Lynch states many buyers of cyclibles buy when margins have expanded greatly–stated those investors were late in the game on historically higher commodity prices (hence,in this case,pork)..Then the investor gets burned by doing what is usually normal buying at the low P/E range than the higher one…stock tips