Editor’s Note: As Chief Investment Strategist of Total Wealth, Keith believes in making his track record of recommendations easily accessible to all readers within seconds – and that’s why he’s compiled an Archives page. Here you’ll find links to every Total Wealth article Keith has published since Total Wealth’s creation on October 2, 2014, posted in reverse chronological order.
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Too bad it’s not Thanksgiving because Facebook Inc.‘s (NasdaqGS:FB) stock is getting roasted faster than a 10-pound turkey.
Team Zuckerberg got hammered yet again, when Facebook’s stock fell another 3.03% during Monday’s trading session to close at $159.99, following news that 11 senior managers have handed in their walking papers.
All told, Facebook is down 6.53% and $11.17 from the high it put in only a month ago. That’s a $11.47 billion buzz cut in terms of capitalization.
Some 23.75% and $49.01 per share in the past 12 months alone.
I believe things could get far worse.
I admit to being a huge Elon Musk fan.
Not only do I think he’s is one of the single most creative executives in history, but Musk shows remarkably prescient insight and determination at a time when the world needs his kind of thinking.
It’s his online antics that I have trouble with.
I wouldn’t care if he wanted to destroy his own company, but Musk risks cratering the hopes and dreams of millions of retirees… people who cannot afford to get burned.
My job is to make sure you’re not among ’em.
Feb 15, 2019
Opinions on Tesla Inc. (NasdaqGS:TSLA) are like bellybuttons in that everybody has one.
Proponents think the company’s stock will go to the moon. Detractors think it’ll crumble like a stale cookie.
I don’t know and, frankly, don’t care.
But ask who’s going to make a pile of money?
Monday’s trading was weak right out of the gate and Tuesday’s 0.15% sputter for the Dow didn’t exactly reassure. That’s got a lot of investors wondering if the “Trump rally” is taking a breather, or if we’re witnessing the start of a far more serious correction that would otherwise put a damper on the remarkable 15% run the DJIA has enjoyed since November 8.
It’s too early to call, but there’s no time like the present to prepare for big profits ahead “just in case,” with one or all of the three limited-risk trades I want to share with you today.
Sears Holding Corp. (NasdaqGS:SHLD) announced a $900 million deal to sell its iconic Craftsman brand to rival tool maker Stanley Black & Decker earlier this week, leading many investors to wonder if it’s time to pony up for a rebound or just hang on.
Sears is still the most dangerous stock on Wall Street, and if you own it, you’re gonna get hosed… if you haven’t been already.
Don’t say I didn’t warn you.
Many investors focus exclusively on buying the best stocks, which is great… until they realize that they’re missing out on half the profit potential in front of them.
That’s not good enough for me; I don’t ever want to see you leave money on the table that could otherwise be in your pocket.
So I want to show you how to find the outrageous profit potential…
… associated with three of the world’s worst companies.
What do you do when you’ve found a stock with fabulous long-term potential that you love… but one of the world’s best short-sellers hates?
That’s the situation thousands of Tesla and Solar City investors find themselves in today.
Most have no idea what to do next, which is why I want to use the situation as a teaching moment. This isn’t the first time two Wall Street titans have been at odds, and it won’t be the last time you’ll see it as an investor.
My goal is to show you how to read between the headlines and identify the winner early on. That way you’ll know how to place your money for maximum profits.
Many investors are so focused on U.S. markets at the moment that they’re ignoring events taking place thousands of miles from our own shore. That’s too bad, because it means they’re missing out on what could be one of the greatest trades they’ll ever make.
The groundwork was laid Sunday night and I just couldn’t wait to share it with you in today’s column.
Not only is the profit potential “Uuuuggggge,” to borrow vernacular from an unnamed U.S. political candidate, but every one of the things most investors are fretting about actually makes this trade potentially even more profitable than it is already:
…a strong dollar… check.
…slowing earnings… check.
…more central bank meddling… double check.
But I’m getting ahead of myself.
Let’s take a moment to make sure you understand why this is such a fantastic and potentially very profitable opportunity. Then we’ll move on to the trade itself.
The last time we saw this set up it led to at least 150% profits.
Microsoft announced Monday that it was buying LinkedIn for a staggering $26.2 billion, and Twitter jumped as high as 4.57% through mid-day trading on nothing more than the hope that the beleaguered media company would be next.
Individual investors and analysts alike believe that the deal will lead to more high profile social media acquisitions.
Don’t bet on it.
Twitter is still a dog and has been for a long time. What’s more, Microsoft has a long history of overpaying for… well… just about everything.
Today we’re going to talk about what’s really driving the Microsoft buy and how to handle Twitter if you’re tempted to pile on.
When I started Total Wealth, I promised you that I would show you how to make money in all market conditions – both good and bad. And, as part of that, I told you I would help you find opportunity in companies that are going up…and down.
Today I want to keep that promise with a look at a gaming company that could be your most profitable short to date. That’s not a statement I make lightly either considering what we’ve accomplished so far.
In 2015, for example, I pinpointed a handful of companies ready to collapse and told you how to play them to the tune of some terrific double digit profits even as other investors were left wondering what hit them. Examples include: 57.36% from Shake Shack Inc. (NYSE:SHAK), 35.75% from Zoe’s Kitchen Inc. (NYSE:ZOES), 41.43% from Twitter Inc. (NYSE:TWTR) and 41.21% in just the last three months of 2015 alone as GoPro Inc. (NYSE:GPRO) went from hero to zero in the eyes of the investing public.
Now it’s time to do go after another overinflated, overvalued company. Only this time the potential could be even bigger because it’s out of touch with the technological changes that threaten its existence.
Here’s your most promising shorting opportunity of 2016 so far.
We’ve talked a lot about why you want to pay attention to what Wall Street does, not what it says. Today we’re going to tackle that subject again.
Because you’ve got another king-sized opportunity on your hands, or at least that’s what one analyst wants you to think.
Before I tell you what it is, though, I have to begin with a story that sets the stage. So grab a cup of your favorite libation and take a seat.
What you do next has a direct impact on your financial future…
I’ve brought several high-profile “shorts” to your attention since we started Total Wealth, and I hope you’ve racked up some big gains by following along.
First, there was Twitter Inc. (NYSE:TWTR) (here). It has fallen 40% from the recent highs of $52/share (in April) and was down 14% this morning after earnings, now trading around $31/share. This trade still has a long way to go, given how poorly run the company is, not to mention the revolving C-suite door. It’s probably worth less than $10 at best.
Then there was Shack Shack Inc. (NYSE:SHAK) (here). I warned you within hours of it hitting a post-IPO peak of $96.75/share (in May) that the thing was a dud. It fell 50% to a low water mark of about $48. It’s back up to $61 or so as I write this, which means there’s plenty of fresh money for the taking and an entirely new group of shareholders for whom hope is an investment strategy. I still see it valued at no more than $0.66, using industry metrics.
Now I want to bring another opportunity to your attention.
This stock is even more insanely valued and has metrics that suggest it’s an even better, more profitable trade.
Right now it’s trading at $41/share and is probably worth no more than $1.36.
If you’re looking for max profits, here’s my next target…
CNBC’s Sara Eisen asked me last Tuesday if I was still bearish on one of Wall Street’s favorite stocks, even after it had already fallen more than 45% since I warned you last May that it was a bad investment.
“You know this environment, Keith,” she told me. “People are paying up for growth companies. The bulls would say this has great brand presence, great brand awareness, and is continuing a careful and steady expansion in the U.S. and abroad.”
All excellent points, I replied… but not one of them changes the fact that a tiny company taking share from huge competitors in a non-growth market does not make it a growth stock.
Then I went for the jugular…
…if this company traded in line with its biggest competitor, the company’s stock price would be only $0.66 a share, or 98.22% less than Goldman Sachs suggests.
Here’s why this stock’s bulls are still in for plenty of heartburn.
One of the promises I made when I started Total Wealth was to keep you ahead of the curve and certainly ahead of the Wall Street herd.
It’s why you subscribe and, frankly, a responsibility I take very seriously.
Fortunately, we’ve got plenty of great examples of how this has worked out.
For example, The Wall Street Journal reported in February 2013 that the country’s biggest investors – including George Soros, Kyle Bass, and Daniel Loeb – were making billions in betting against the Japanese yen by capitalizing on the fact that Tokyo had to weaken it to save that nation’s economy.
That’s great but as Bill Patalon noted in his Private Briefing, I told subscribers about that trade a year earlier in a move that allowed anyone who followed along to double the returns those same Wall Street heavyweights achieved. At the time, that was 44% versus the 20% being lauded by the Journal.
Today I want to share another example with you and use it to highlight two very important Total Wealth Principles.
Understand what I’m about to share with you and you’ll never get burned again by false media narrative. More importantly, you’ll learn how to recognize an Icarus-like trajectory for what it is – and, hopefully, make a lot of money in the process.
Here’s what you need to know.
Millions of investors and everyday Americans have discovered Shake Shack’s high-end hamburgers. They taste great, and the new chain is a snazzy place to hang out.
Logically, they assume that the novel experience will translate into a great investment. Indeed, SHAK gained 8.47% in yesterday’s trading session to close near $90 (an all-time high), thanks in part to headlines from this week like these:
Is Shake Shack The New Chipotle? – Yahoo! Finance
Shake Shack Is Considering a Chik-Fil-A Killer – Business Insider
Shake Shack Continues to Defy Gravity, Surges to Fresh All-Time Highs – Briefing.com
My favorite piece of punditry this week came from CNBC’s Jim Cramer, who dubbed Shake Shack “the Tesla of burgers.”
Nonsense – sure both stocks are volatile, but TSLA investors can be glad the similarities stop there.
Recent investing history has been very clear about the ultimate fates for companies like Shake Shack – and investors should pay attention. There are undeniable parallels between Shake Shack and another infamous stock story in investing circles.
Here’s why investors would be wise to avoid Wall Street’s new darling.