There are two optimal actions in a cyclical bear market… Hide from the volatility with an elevated cash position until there’s clear evidence of a market bottom, or find stocks that are cheap enough and are paying one to wait to justify putting hard-earned capital at risk. The problem? There is a dearth of these…
Category: stock pick
A High-Margin Business At Fire-Sale Prices
While sentiment for the general markets (SPY) has been trending lower over the past two months with a violent 15% decline from the August highs, sentiment for the Gold Miners Index (GDX) is in the incinerator and has rarely ever been worse over the past decade. This is evidenced by the fact that we have…
Small-Cap Tech Stock Outperforming Its Peers
With the markets remaining turbulent and the S&P-500 (SPY) suffering a five-day rout that’s sent it down 6.5% and down over 15% in the past 30 trading days, it’s understandable that some investors might not be in the appetite to buy. Meanwhile, among those anxious to buy, they may be looking for stocks beaten up…
Defensive Stock Brewing Up Record Profits
In a turbulent market environment, there are several strategies designed to outperform. Some of these include buying beaten-up high-beta growth stocks where sentiment is out of favor. A complementary strategy involves balancing this with deep value stocks trading at high free-cash-flow yields that are likely to be under accumulation. However, both strategies can translate to…
SAND: Unrivaled Growth in the Gold Sector
One of the guaranteed ways for investors to lose money is to rush into commodity stocks which are highly volatile when the commodity is the most loved it’s been in years. This is because these stocks are leveraged to the price of the commodity. So, while they can soar in a period of rising commodity…
A Fitness Franchisor With Explosive Growth
In a declining market, multiple strategies can be employed to generate alpha. One of the most popular strategies is to buy undervalued quality stocks or high-growth stocks at a discount to fair value. The one drawdown of this strategy is that it can take time to see positive results. Plus, depending on one’s patience level…
Mid-Cap With A Standout Technical Picture
There are dozens of different trading strategies that one can employ, but the key is knowing which are best suited for the current environment. In a cyclical bear market, like we’ve found ourselves in, some investors might assume that trend-following strategies are inferior, providing lagging signals in a volatile market environment. However, this assumption couldn’t…
BURL: A Trade-Down Beneficiary
One of the most successful investment strategies is to buy great businesses at a deep discount to fair value, but it’s often much easier said than done. From an emotional standpoint, investors must often buy when the headlines are the worst and plug their noses to the stench of rotten earnings revisions. From an application…
Recession-Resistant Stock At An Irresistible Price
Many investors like to buy IPOs immediately after their IPO debut to ensure they don’t miss out. However, a much lower-risk way to play these stocks is waiting at least nine months to pass their lock-up period and build a new primary IPO base. This period allows any investors/insiders with cheap shares to clean out…
Retail Stock Undervalued By 35%
Bottom-fishing for exceptional businesses is a great strategy if done carefully, but there is a less popular strategy that also works great. Trend followers employ this strategy, and its goal is to buy stocks that are making new highs – especially during bear markets. The rationale behind this strategy is that if a stock can…
