Check the price chart before you buy. Growth stocks should be in an uptrend, meaning the price should be above both its 50-day and 200-day moving average when you buy. The ideal buy point is when the 50-day MA has just recently moved above the 200-day MA. There is added risk if the stock has already made a big move up, that is, if the share price is more than 50 percent above its 200-day MA.
Impath was trading at $48, above its 50-day moving average and more than 60 percent above its 200-day MA in June 2000.
Impath scored high in all categories except profitability and cash flow. I didn’t know about comparing net income to operating cash flow in June 2000. If I had, I probably wouldn’t have bought Impath.