The Cloud Over the Equities Market Has a Silver Lining as it Exposes Some Irresistible Values
New report coming Monday, September 26,2022, at or near market open.
Good day everyone,
I know the equities market is lousy and it’s confusing because we don’t know the exact timing of the bottom. Investors are nervous, not because corporate revenues and profits are down, not because the economy has ground to a halt, but because of interest rates and inflation.
The Fed is doing its best to keep inflation at bay by raising interest rates and there has been a knee-jerk reaction in the equities market with every increase. We saw that reaction last week when the Fed raised the discount rate by .75% on Wednesday and the equities market fell Thursday and Friday.
But there is a silver lining in the cloud currently hovering over the stock market and that is value. Now seems like a good time for taking a hard look at value opportunities and they are out there in abundance. Especially in small-cap equities which have been the hardest hit. We are looking at value opportunities every day. Companies trading below book value, companies with low EPS ratios, companies with market caps below their annual revenues.
I want to update you on a NASDAQ company that, frankly, may be a steal at the current price. As I mentioned above, this company’s market value has fallen far below its book value and it currently has a cash position, and annual revenues that are close to the current market cap.
Like me, I’m sure you will appreciate this company’s tiny share structure and ownership by both insiders and institutions. When you look at the chart, you might determine that with the current pricing, a near term swing is a very good possibility.
Stay tuned and stay informed. We will issue this report on Monday, September 26,2022, at or near the market open.
The Traders News Group |