Editor’s Note: As Chief Investment Strategist of Total Wealth, Shah 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.
Take-Two Interactive Software Inc. (NasdaqGS:TTWO) as the gaming gorilla behind such mega-hits as the Grand Theft Auto, NBA, Mafia, and Red Dead Redemption franchises – and a firm with a market value of more than $20 billion and a share-price trading peak up near $215.
There was a time, however, when Take-Two was an under-the-radar “cheap stock” – indeed one that was trading for less than 10 bucks a share.
For folks keeping track at home, that’s a 2,050% windfall from a single-digit-share-price stock.
And Take-Two isn’t the only one like this.
There’s also Patrick Industries Inc. (NasdaqGS:PATK), a building products company that’s now worth more than $2 billion and whose shares trade at about $90 each.
There was a time when Patrick was worth less than $25 million – and its shares were trading at about $1.20.
For investors who played this cheap-stock play, that’s a windfall of 7,100%.
Or how about LendingTree Inc. (NasdaqGS:TREE) – the fintech leader that’s pretty much a household name these days. This go-to lender recently had a $3 billion market value and a stock price up around $220.
But there was also a time when LendingTree was worth a minuscule $60 million – with a stock price down around $5.50.
From that point to today, we’re talking about a total return of about 3,800%.
Now, I’m not sharing these stories just because I love an underdog.
If you want to make money – real money – look at these single-to-low digit stock plays.
And this isn’t just me talking: Research by academics and institutional players backs up everything I say.
If you look at the 50 biggest winners of the last decade, 39 of them started out as small- to mid-cap plays.
And quite a few of them were also low-priced (as in cheap) stocks, all with great fundamentals – like the ones we’re talking about here – indeed, the same ones I seek out for you folks here at Total Wealth.
In this two-day special report, we’re going to show you how it’s done.
Today, we’re going to show you why cheap stocks can be so hot.
Tomorrow we’ll get you started with a $7 stock to play.
Apr 20, 2021
For Options Tuesday, we’re playing the bond market rally.
You know, the rally that in about 10 days just took the 10-year Treasury from a 1.79% yield to 1.54%.
Yep, the bond market rally that crescendoed last week right when economic data showed the fewest new unemployment claims since March and retail sales skyrocketing 9.8%.
That bond market rally.
Now that the markets have opened, it’s more important than ever that you see this.
You’ve had some time to go through the Weekly Watchlist I sent yesterday – which you can still see by clicking here. Today, I’m taking a deep dive into these companies, and the state of the market. Everything is elevated and, while I’m still bullish, we need to stay on our toes.
You guys had questions, and I have answers.
In today’s BS.H segment, I go over all the stocks you guys asked me about, running from Netflix and Apple (both strong holds), to COIN, Gold, and clean energy stocks.
Apr 15, 2021
Financials are the ultimate cyclical stocks.
And banks are the ultimate financial stocks.
The fact is, I love banks. And I’ve been touting them since last summer – indeed, I was ahead of the crowd on predicting their rebound.
I still chuckle over the good-natured grief I received last year from Fox Business News host Charles Payne when I appeared on his “Making Money” show and recommended financials.)
Today, Charles repeatedly congratulates me for having made that “call” before anyone.
The fact is that – by being ahead of the crowd in making banks stocks a “Strong Buy” – we reaped the big returns that stem from being first.
But if you missed that prediction – or maybe weren’t able to act on it – don’t be concerned: I still see the right bank stocks as big moneymakers for investors.
In fact, my newest call is an updated call on financials, on banks. And you – my Total Wealth followers – are hearing it first.
In yesterday’s TW – as part of our deep-dive look at the cyclical-stock beneficiaries of the strongest U.S. rebound in decades – I promised to bring you a stock play … and this one is a “stone-cold bargain”
Today, I’m keeping that promise.
It’s a stock that’s set to bring you a gain, in my opinion, and based on my analysis, of 50% on your money – and quite possibly more.
As the American economy muscles its way out of the pandemic morass, this is one of the ultimate stocks to buy and profit from as you go along for the bullish ride.
MarketWatch sees the insider selling at sensitive-to-the-economy companies like Carnival Corp. (NYSE:CCL), The Walt Disney Co. (NYSE:DIS), Goldman Sachs Group (NYSE:GS), Morgan Stanley (NYSE:MS) and Yum Brands Inc. (NYSE:YUM) – and views it as a possible warning that “the end has arrived” for cyclical stocks.
Investor’s Business Daily peruses S&P 500 market data and concludes that American Airlines Group (NasdaqGS:AAL) and other cyclicals are “grossly overvalued.”
And Barron‘s hammers the stake all the way into the cyclical story – cautioning investors that tied-to-the-economy stalwart U.S. Steel (NYSE:X) is “one of the most-overvalued stocks in America.”
Nervous Nellies all of them. Sycophantic mouthpieces for a hidebound Wall Street.
Tune them out, I say. They’re wrong.
Indeed, I like all those stocks.
All of them.
Apr 13, 2021
One of my favorite things about trading is taking a reasonable amount of risk on a speculative-type trade and having it pay off… big time.
The key to unlocking big gains is lining up an upcoming catalyst with an options trade that has the right reward-to-risk profile. Some pros call these kinds of trades asymmetric risk trades, but I like to call them “multiplier trades” because they’re trades where the upside is 2x, 3x, 4x, or more than the downside.
Today marks the first edition of my Watchlist. From now on, every week, I’m going to tee-up what I’m watching in the days ahead, why it’s important, and how to trade what’s hot and what’s not.
This week is going to be crazy, I can guarantee you that.
Apr 07, 2021
Click here to download the PDF version You can’t go anywhere these days without hearing about SPACs, and there’s a good reason for that. Wall Street refers to these by their technical name, special purpose acquisition companies, and they are …
Apr 07, 2021
This week, we brought you special research on the “New Age IPOs” known as Special Purpose Acquisition Companies (SPACs).
And I made you a promise.
A promise to round out our three-installment foray into the world of SPACs with a recommendation that would start you down a profit pathway of your own.
Mar 31, 2021
Week of October 18 ASML Holding NV (ASML) In basic terms, ASML provides chipmakers with everything they need: hardware, software, and services to mass produce patterns on silicon through lithography. I think the company is positioned beautifully to benefit from …
Mar 31, 2021
In the first of my three-part series on SPACs, I outlined exactly what Special Purpose Acquisition Companies (SPACs) are, how they work, and the 400%, 500%, or more in gains they can yield investors.
Unless you’ve been hiding from the market, and heaven help you if you have been, you know SPACs are the hottest sector out there right now, and with good reason. There are new SPAC IPOs being minted literally daily, sometimes two or three a day. Traders are playing them, and investors are plowing into them. And there are going to be spectacular winners. And there are going to be lots of losers.
What you need to know, because there are so many SPACs coming out, is which ones are going to be the winners and which ones are going flounder or fail. Because, needless to say, not all SPACs are created equal, and any advice you’ve heard about skimming the cream of the SPAC crop is probably very wrong.
While the likes of QuantumScape Corp. (NYSE:QS) can hit a whopping 1,200% peak during their run, other enticing-looking SPACs can be snakes in the grass. The difference between knockout winners and bottom-of-the-barrel slugs isn’t always obvious.
That’s because there are lots of nuances, lots of details that matter when it comes to SPAC sponsors and founders, the teams they convene to look for acquisition targets, the price they pay for operating companies, how those acquisition targets are valued before a deal is reached, who invests in target companies under what deal and valuation terms before they are acquired, who are the investors providing PIPE (private equity in public companies) financing for the acquisition/merger deal and what are their incentives and deal terms, how much operating capital will be injected into the new company, what are its real prospects?
Those aren’t hard questions to answer. In fact, the answers are simple, you just have to know where to look for all those details, because they’re out there. They’re in deal documents, in disclosures, in regulatory filings, in proxy materials.
They’re everywhere I look. And I look everywhere.
But you may not be looking everywhere, so to consistently cash in on the winners while dodging the losers that could drain away your profits, you need a powerful but simple strategy to follow.
You can’t go anywhere these days without hearing about “SPACs,” and there’s a good reason for that.
Wall Street refers to these by their technical name, “Special Purpose Acquisition Companies,” but I see them for what they are: “New Age IPOs” that can give retail investors a way to cash in on newly minted companies.
Wall Street and retail investors alike had a stellar run with SPACs last year, and now SPACs are outdoing themselves this quarter, becoming one of the hottest trading opportunities on the market right now, yet so few people know about SPACs.
This is a major trading opportunity I don’t want you to miss. So, here’s what’s in store for you this week:
I’ve got three special reports on SPACs – what they are, how to play them, and a recommendation to round off the whole series – heading to your inbox over the next few days.
You’re going to get the all-inclusive, grand tour of SPACs. Ins and outs, nooks and crannies… my team has researched it all so you don’t have to.
Today, you’re going to get to know SPACs, get friendly with them, so you know what you’re trading and why before we launch into how to buy and how to profit.
Mar 29, 2021
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