re: going places- golden rules # 4 & 5? KM, the Lincoln Golden...

re: going places- golden rules # 4 & 5? KM, the Lincoln Golden Rules cover a range of conditions, not all of which affect whether or not a given stock is to be regarded as a Star Stock.

Golden Rule No. 4 relates to Liquidity and volume, both of which RDF passes comfortably for retail investors.

Golden Rule No. 5 is concerned with Share Price Trend, and merely says (very wisely): Never buy when price is screaming downhill. Fairly obviously, RDF also meets this test.

Lincoln Indicators is clearly trying to give guidance on a broad basis, and we should not expect that all their conditions will always be met. Indeed, they go to some pains to point out that, to achieve Star Stock status, it is necessary only for a stock to meet Rules 1, 2, 3, and 6. That is almost certainly why those criteria have been singled out. Conformity simply means that such companies are regarded as "fundamentally very sound businesses".

Their system aims to serve as a screen, and thereby protect investors from fundamentally weak stocks.