Buy This Stock at a 40% Discount Before It Rebounds
Shah Gilani|April 18, 2023
One of my favorite things to do is buy up stocks from great companies that have, for one reason or another, gotten beaten up and are trading at a deep discount. Markets are a cyclical phenomenon for the most part – what goes up inevitably comes down, but the same is true in reverse.
Thanks to the recent banking crisis, a lot of finance industry stocks have gotten hammered, and despite the overall rally we’ve been enjoying, are still down significantly from their 2022 highs. Earnings season may not improve that state of affairs much, especially in the case of regional banks, who still have to reconcile the large amounts of debt they’re holding.
But there’s one company in particular that I’m looking at here as a “comeback king,” for a very simple reason – they’ve always been more of a brokerage than a bank. Their banking services exist mostly for the purpose of facilitating deposits for clients who use their brokerage services, rather than being a primary part of their business. So the risk of depositor flight is much less for them than with other institutions.
On top of that, this firm is the largest custodian for Registered Investment Advisors (RIAs) in the country, backstopping their trades and holding the assets for an RIA’s clients. And they’re constantly innovating to create products for clients that generate yields.
When a company like this is trading 40% lower than where it was in early 2022, it’s a real opportunity. The public’s shaken confidence in banks isn’t going to last forever, and when it fades, money is going to come flying back into this firm at speed. I could easily see it blasting back up to last year’s highs and beyond.
Check out this video for the ticker:
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I know that the financial crisis and the threat of an impending recession have a lot of you looking for safe havens to park your capital right now. Like the recommendation I just made, the trick is to find opportunities where capital is guaranteed to flow, regardless of what markets do.
One of those places is America’s aging electric grid. Today, over 70% of the U.S. electricity grid is more than 25 years old, and that system is vulnerable to increasingly intense storms. The Department of Energy is committed to fixing that with a $13 billion injection of cash and tons of new development contracts.
I have a lead on a company that could take the lion’s share of them, and the founders have agreed to reserve some of their shares at less than $5 a piece.
But this is only for investors who act before April 20 – after that, the floodgates open to Wall Street and institutions. The time to act is now – I have a full report here with all the details.
Shah Gilani
Shah Gilani is the Chief Investment Strategist of Manward Press. Shah is a sought-after market commentator… a former hedge fund manager… and a veteran of the Chicago Board of Options Exchange. He ran the futures and options division at the largest retail bank in Britain… and called the implosion of U.S. financial markets (AND the mega bull run that followed). Now at the helm of Manward, Shah is focused tightly on one goal: To do his part to make subscribers wealthier, happier and more free.