Before I get into today’s Market360, I just want to sincerely thank the thousands of investors who took the time to attend our Moneyball Multiplier Challenge yesterday afternoon.
Since the event generated at TON of interest, I am still fielding questions, but I want to start with this observation:
On any given business day, millions of people pay attention to the blinking lights and flashing numbers they believe make up “the stock market.”
Unfortunately, just a tiny percentage of those people will ever understand the real secret to making money in stocks.
These folks forget that a stock isn’t just a flashing light on a screen or a trading hot potato. When you buy a stock, you buy a partial ownership stake in a real business.
You own a slice of that company’s equipment, inventory, patents, real estate, and brands. You become financially exposed to both the company’s upside and downside.
That’s why people tend to invest based on earnings (or the anticipation of them).
The more a company grows its earnings, the more its shares will be worth. That said, stock price trends can diverge from earnings trends for a while – but over the long term, if a company grows and grows the amount of cash it takes in, its share price is sure to head higher. That’s how the market works. It’s the “iron law” of the stock market. And it’s why price/earnings (P/E) ratios aren’t the “be all, end all.”
Instead, if you’re looking for stocks with massive upside potential, you should focus on the companies with massive revenue and earnings growth. Even better, the companies should have a tendency to surprise Wall Street analysts with better-than-expected earnings growth.
But don’t stop there. In fact, thanks to powerful advances in computer technology and artificial intelligence, my team and I are able to sift through millions of data points each second on nearly 5,000 stocks listed on the exchanges.
At the end of the day, we’re able to boil them down to a few factors that can act like rocket fuel for a stock. That’s something no human being can do for themselves.
It all comes down to eight essential factors or key metrics that have proven most effective for hitting massive home runs over the past several decades and that form the foundation of my “Moneyball” system.
Corporate America is not Lake Wobegon, where all the kids are above average. The brutal truth is that some companies are much, much better than others. They have better management, better products, bigger profit margins, stronger sales, stronger balance sheets, etc.
My system analyzes roughly 5,000 stocks, grades them according to the fundamental qualities I just mentioned, and waits for the right signal to time the buy.
The result for you, in using my Portfolio Grader, are grades just like the ones in school:
A stock with the highest growth, business quality and institutional buying pressure ratings gets an “A.” A stock with miserable ratings gets an “F.”
The result of all this work? My readers buy the world’s fastest-growing companies… and hold them through their most successful years of expansion.
Of course, all this information is constantly changing. That’s why my ratings are updated weekly. When an “A” stock starts to falter in these qualities, the rating changes too. That’s the signal that it’s time to claim some profits.
That’s what I did with the following stocks, which earned us 211% to 347% returns at Breakthrough Stocks in years past:
America Movil S.A. (AMX) once a 347% winner for us, is now a “Sell.” Here’s its full Report Card today:
I would need to see some drastic improvements in this telecommunication provider’s fundamentals before I would EVER consider recommending America Movil again.
For a look at these exact measures and how I use them, see the replay of Wednesday’s Moneyball Multiplier Challenge.
If you decide to sign up for Breakthrough Stocks after, you’ll receive my exclusive special report, My Top 3 High-Flying Moneyball Stocks Poised to Skyrocket by 1,000% or More – absolutely free.
In this report, I recommend three fundamentally superior small-cap stocks flying under the radar in today’s hottest sectors. For example, one is a player in the 5G wireless technology sector that’s undergoing rapid adoption in the U.S. and across the world. This company achieved the highest level of revenue in its history during the third quarter, and is in prime position to tap into the growing demand for highspeed internet with so many folks working from home.
It also holds a rare AAA-rating, which means it earns an “A” for its Fundamental Grade, Quantitative Grade and Total Grade. Get the full details, here.
Bottom line: Watch the recording of this Wednesday’s Moneyball Multiplier Challenge to find out all the details of my “Moneyball” system. And, if you choose to join me at Breakthrough Stocks after, you’ll receive my exclusive special report, My Top 3 High-Flying Moneyball Stocks Poised to Skyrocket by 1,000% or More at no extra cost.