{"id":87,"date":"2005-12-18T21:03:29","date_gmt":"2005-12-19T01:03:29","guid":{"rendered":"https:\/\/stockherd.com\/moosepond\/?p=87"},"modified":"2010-02-15T13:11:17","modified_gmt":"2010-02-15T17:11:17","slug":"the-coiled-spring-effect","status":"publish","type":"post","link":"https:\/\/stockherd.com\/moosepond\/2005\/12\/18\/the-coiled-spring-effect\/","title":{"rendered":"The Coiled Spring Effect"},"content":{"rendered":"<p>Market forces are not always rational.  Sometimes, a company continues to grow its earnings but its stock price gets stuck in a rut, trading within the same price range for several years.  Earnings continue to grow but the price stays about the same.  This phenomenon can be observed in the graph in Section 1 of the stock selection guide and also in the table in Section 3 (falling high and low PEs).  Sooner or later, the market will &#8220;discover&#8221; the stock and the price will quickly adjust upward and then follow earnings more closely.  Patient investors are rewarded.  This is the coiled spring effect.<\/p>\n<p>Three quality stocks that fall into this category are Wal-Mart Stores (WMT), Microsoft (MSFT) and the Coca-Cola Company (KO).   They are discussed below.  Moose Pond currently holds Wal-Mart.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Market forces are not always rational. Sometimes, a company continues to grow its earnings but its stock price gets stuck in a rut, trading within the same price range for several years. Earnings continue to grow but the price stays about the same. This phenomenon can be observed in the graph in Section 1 of [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_jetpack_memberships_contains_paid_content":false,"_links_to":"","_links_to_target":""},"categories":[52],"tags":[],"jetpack_sharing_enabled":true,"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/stockherd.com\/moosepond\/wp-json\/wp\/v2\/posts\/87"}],"collection":[{"href":"https:\/\/stockherd.com\/moosepond\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/stockherd.com\/moosepond\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/stockherd.com\/moosepond\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/stockherd.com\/moosepond\/wp-json\/wp\/v2\/comments?post=87"}],"version-history":[{"count":2,"href":"https:\/\/stockherd.com\/moosepond\/wp-json\/wp\/v2\/posts\/87\/revisions"}],"predecessor-version":[{"id":452,"href":"https:\/\/stockherd.com\/moosepond\/wp-json\/wp\/v2\/posts\/87\/revisions\/452"}],"wp:attachment":[{"href":"https:\/\/stockherd.com\/moosepond\/wp-json\/wp\/v2\/media?parent=87"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/stockherd.com\/moosepond\/wp-json\/wp\/v2\/categories?post=87"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/stockherd.com\/moosepond\/wp-json\/wp\/v2\/tags?post=87"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}