Update December 16th, 2018
Initiating coverage on 12-17-18 at 9:15 AM Eastern – We will be releasing a tiny float, consumer staple small cap report, nice setup, known for huge run up’s in PPS, this is a profitable company with revenues that should remain relatively unaffected by an economic downturn.
These are the types of reports you should expect from us into 2019, we will be seeking near-term gains, consumer staples, undervalued, near-term catalyst including biotech with a more conservative approach.
Volatility is Always an Opportunity for Profits.
Good day everyone,
The equity markets are looking a little scary right now. The Dow Index has taken a significant drop over the past few months and other indices have fallen as well.
Why? The financial pundits cite issues such as the trade deal with China looking bad, the inversion of certain treasury yields, rising interest rates and more. We should also mention that any profits realized this year will be taxed at the new, lower tax rates. That fact may be creating selling pressure, after all, who knows what the 2019 and beyond tax rates are going to be.
We’ve seen the DJIA find support at about 23,000 and resistance at about 26,000 all year long. The fundamentals that should be driving stock prices; low unemployment, rising corporate profits and unprecedented share buybacks, are seemingly being ignored in favor of the pundit’s news of woe and despair.
You are an active investor, that’s why you read this newsletter. You don’t want to wait for the major stock indices to regain their lofty levels. You want your money to work for you every day, regardless of market volatility. We fully support that initiative, so we looked to see where the smart, big money is going, and we see a lot of money flowing into small cap growth stocks.
We track 58 small caps, mostly equities we have alerted to you over the past 18 months. On Friday, as the markets seemed to be in free-fall with the Dow losing almost 500 points, 29 of those 58 stocks were green.
Investors, big and small seek out value in times of volatility. The small and micro-cap markets are where the equities with true value can be found. Large cap stocks got stretched to their pricing highs when we exploited every valuation metric that can possibly apply to them. Those same metrics, P/E, book value, ROI, P/S and others, are often overlooked on the small-caps. We try to tell you about as many of those stocks as we can.
Small/micro-cap stocks can make huge gains in a short period of time when investors, big and small find one that is really undervalued. When was the last time you saw a large cap stock jump 70% in a couple days? It virtually never happens in the large cap trading arena but happens almost every day in the small/micro-cap world.
The big money on Wall Street has analysts using algorithms to seek out these undervalued little stocks and that’s quite an advantage. Our goal is to bring that same level of advantage to you. We don’t use algorithms to pick the stocks we talk to you about; we substitute that with extensive due diligence and the patience to watch an equity before we bring it to you. So, let us use this temporary market volatility for what it really is, an opportunity to make money.
Many of our members have made triple digit gains in 2018 by following this newsletter. Not every stock we alert is a winner, but they far outweigh the losers. When a small/micro-cap stock is undervalued whether it be biopharma, tech or a consumer staple. We search for near-term potential and want you to know about it. We are always scouring the markets looking for those opportunities.
Always use an exit strategy, win or lose, when trading equities. We may have a couple stocks to talk about yet this month, so keep on reading. We look forward to a profitable 2019. We will talk to you soon.
Your profit partner,
The Traders News Group
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