Special Report for Market 360 Growth Members
3 Bargains I’m Buying Right
Now for My Family Trust…
By Louis Navellier
Navellier Family Trust
Last week’s surprise selloff culminated in the worst two-day plunge we’ve suffered in… well, frankly, it seems like forever. Mondays “failed” bounce did little to restore spirits.
For patient long-term investors, the market action itself isn’t particularly concerning. After more than two years without a meaningful pullback, we are frankly overdue.
Which is not to say it’s going to be clear sailing from here. Or that holding tight and maintaining our discipline in the throes of a double-digit correction that’s inevitably coming our way will be easy.
Especially once the so-called "experts” in the media completely flip their lids. Conjuring images of technical breakdowns… leadership failures… or broken market internals…
In other words, once the “healthy” correction we’ve all been told to wait patiently for is suddenly viewed as a "significant reversal" and a "major break" in the markets.
Amazingly, it’s already happening!
You’re no dummy. You wouldn’t be reading this if you were. At the same time, it’s onlyrational to be concerned at times like this. Especially since there are always explanations for why stocks are headed for a crash.
Whether it’s the collapse of the U.S. banking system… spiraling national debt and credit downgrades… China’s imminent collapse… the death of the Euro or the U.S. dollar… or simply stock market valuation…
Or in this case, a currency crisis that could unravel a growing list of troubled emerging market economies. Such doomsday scenarios, once remote, sound downright rational when supported by red ink and poor market action.
At such times, it’s tempting to give into our fears and question our resolve. Will this be one of those times? It’s too early to tell for sure. Though I can tell you this: I’m buying this weakness—and will continue to do so.
But I’m not buying indiscriminately, as I hope you won’t either. Which brings me to the first of two reasons I rushed to prepare this report for you today: Namely, to share with you three unique opportunities I am buying for my Family Trust…
And that I hope you will consider buying for your own portfolio. Before I tell you the second reason I’ve created this special report for you today, let’s take a look at these three companies and why I recommend them to you so strongly.
Bargain Buy #1: Backing the Biotech Boom
My first recommendation packs a one-two punch. First, this stock yields a whopping 7.8%. Second, this company runs like a well-oiled machine, with 47.1% sales growth and 26.8% earnings growth estimated for this year. So this company is not only at the top of its game; it is also at the top of the mortgage investment industry.
The company I am referring to is Hercules Technology Growth Capital Inc. (HTGC), which invests in early-stage venture-backed firms with a focus on the biotechnology, life science, healthcare and cleantech industries. As a Business Development Company (BDC), Hercules is required to distribute at least 90% of its taxable income to shareholders.
But unlike many others in its class, Hercules is well protected from Fed action and rising interest rates. That’s because Hercules has an impressive portfolio list and the company’s investment approach is to focus on short-term senior secured debt with a floating rate. Plus, the company generally receives warrants in pre-IPO companies from its loans, so there is strong upside potential above and beyond the interest rates of its loans.
Hercules Technology backs some of the most promising start ups and emerging players in life sciences and biotech, so I see plenty of further upside in 2014, regardless of where the overall market goes. That’s why I’m not only recommending Hercules to my Family Trust members, I’m adding shares with my personal accounts.
Bargain Buy #2: Making a Clean Sweep
My second recommendation is making a clean sweep of the competition. This paper products company is expected to post 41.7% annual earnings growth this year—nearly double the industry average! All the while, this company pays the most generous dividend in the industry, yielding 4.5%.
Orchids Paper Products Company (TIS) is a leading maker of consumer paper products like bathroom tissue, napkins and paper towels. Orchids Paper mainly sells its brands, including Colortex Soft ‘n Fluffy and Velvet, to discount retailers like Dollar General, Family Dollar and Wal-Mart.
This up-and-comer is turning the paper products business on its head. The regional company is aggressively expanding its reach by upgrading its paper mills and rolling out new, higher-quality paper products. And as consumers have gravitated towards cheaper paper products, private labels like Orchids have gained ground versus the more well-known brands. This is what’s driving Orchids’ healthy top- and bottom-line growth.
And as I mentioned earlier, this company knows how to reward its shareholders. Over the past three years the company has more than tripled its dividend and the company shows no signs of slowing down. But the best news is that this company is still flying under the radar of most investors, and the markets recent dip has put shares in a very attractive range. With high marks for safety, growth and income, I advise you pick up shares before things really heat up in 2014.
Bargain Buy #3: Safety in Uncertain Times
In the safety and security business, few companies can beat Federal Signal Corporation (FSS) in terms of brand recognition. With over 100 years in the business, Federal Signal Corp. ranks in the top two in most markets it operates in, whether it’s Safety and Security Systems, Fire Rescue or Environmental Solutions. It’s a small wonder, then, that Federal Signal serves a range of municipal, governmental, industrial and institutional customers in over 100 countries around the world.
In the United States, safety and security is becoming a bigger issue by the day. And whether its fire truck components to emergency alert systems to sirens, Federal Signal Corp. has a hand in all of it. There’s no doubt that this is boosting sales and earnings. This year, the company is expected to post nearly 142% annual earnings growth!
And with the company rolling out new way to aid law enforcement, schools and construction agencies by the month, Federal Signal Corp. has the green light from me for 2014. Federal Signal is a safety stock that I expect to provide much needed piece of mind during these uncertain times.
Now, the second reason you’re
reading this new report
Of course, that’s just a brief summary of my full investment rationale for the three opportunities you just read about. Though, again, all three have been fully vetted by my research team and by me personally—and I am purchasing all three with my own money and for my Navellier Family Trust.
You can buy all three stocks with confidence today. Especially, if you are intrigued by the idea of growing your wealth, earning more income, and defending your profits, regardless of what the market throws our way in 2014.
Likewise, if you have cash that you need to put to work but are uneasy investing in this stage of the five-year bull market. If either sounds like your situation, I’ve recently made an impulsive decision that might interest you.
Just as soon as my team can properly welcome you, I will make a small number of seats in my Navellier Family Trust available to Market 360 members like you. If you think you may be interested, I’d love for you to join us.
You don’t have to do anything today
I’ll be back in touch with more details, including what Family Trust is all about, the precise steps we’re taking to build our wealth with less volatility in 2014, and what you can do if you want to join us.
Though please be aware: Due to the type of investments we’re making together and the high-level of service I’m committed to provide you, we can only accommodate a small number of investors in my Family Trust,
For this reason, we have been closed to new members on all but a handful of days since I opened my Family Trust back on Labor Day 2012. I’ve decided to make a rare exception over the next few weeks, and I’ll be back in touch soon.
In the meantime, please stand strong. Switch off the TV if you have to… and by all means take a look at the three opportunities we discussed today.