In a perfect world, we’d all have access to the same information, and stocks would price themselves quickly and accurately, and there’d be no “mystery” or uncertainty in taking a position.
It’s a pretty thought.
Only there is one catch – there wouldn’t be any massive opportunities like the one I’m going to show you, either.
You see, as a thrifty man, I’m always hunting for a good deal.
But the best, most satisfying, ones are always those that effortlessly fall into your lap.
And that’s exactly the kind of play that we’re going to look at.
What I’m going to show you is the next best thing to getting something for nothing.
It’s not unlike what used to happen in brick-and-mortar stores back in the day, before barcodes and RFID tags, when a high school kid would go around with a sticker gun, sticking prices on items, and make a mistake.
It might not have been so great for the employee, but it was always a sweet feeling for the consumer to get an unexpected deal.
Well, the exact same thing is happening right now in one of the best pharma companies on the market…
And it’s a “sweet deal” investors won’t want to miss out on…
None of the problems in the beleaguered retail industry hits closer to home than that of Sears Holding Corp. (Nasdaq: SHLD).
Like me, you probably had a dad or uncle that swore by Sears for, if nothing else, its tools for various home-repair projects. Craftsman was a dominant tool brand for much of its 90 years – and Sears was the only game in town to get them for a time.
The tools lasted seemingly forever and, when there was a rare problem, the warranties were fantastic and easy to use. Several generations of consumers simply refused to buy tools anywhere else.
Sears is defining case study for problems the retail space. Founded 131 years ago, Sears itself admits it’s close to closing its doors after losing $10 billion over the last decade.
To me, when Sears sold the Craftsman brand in January to Stanley Black & Decker (NYSE: SWK), they might as well have played “Taps” and raised the white flag.
Granted, Sears’ situation is far from unique. More than 8,600 brick-and-mortar stores will close their doors this year, according to Credit Suisse.
That’s a higher rate than the record year of 2008 – the height of the financial crisis. News of closures seems to arrive daily now.
Recent examples include Bebe StoresInc. (Nasdaq: BEBE), which plans to close its 168 outlets and sell solely online, and Urban OutfittersInc. (Nasdaq: URBN), which said the very future of the retail sector isin doubt.
But you never hear about two retailers closing stores – TheHome Depot Co. (NYSE: HD) and Lowe’s Cos. (NYSE: LOW).
They’re riding the strength of the $700 billion global home services market.
Today, I want to tell you about a tech firm that made a key buyout in this bulletproof sector – and why the move could put money in your pocket.
While Wall Street‘s punishment of Snap Inc. (NYSE: SNAP) following its disappointing first-ever quarterly report was overly harsh, that doesn’t mean most investors should buy in – yet.
Michael made one of his frequent appearances on Fox Business Network to explain why that’s so. And he let host Neil Cavuto know exactly which investors should consider buying Snap now. Is that you? Watch the video to find out.
In the late 1980s, while working as a banking analyst, I actually got up-close and personal with Carl Reichardt, who was CEO of Wells Fargo & Co. (NYSE: WFC) at the time.
And something he shared with me in his spacious San Francisco office has stayed with me ever since.
I asked Reichardt if Wells Fargo’s focus on home and middle-market loans might be considered boring when other banks were chasing more exotic investments with higher yields.
He looked me straight in the eyes and said, “If plain vanilla means making a lot of money, then color me plain vanilla.”
I bring this up because I’ve spotted a dental-technology firm that investors might at first consider ho-hum – but that’s soared 80% in the past year. That’s five times the gains of the S&P 500 during the same period.
Yes, investing in a dental company may sound dull – or maybe even painful – but this is actually a profit-producing tech superstar.
After a painfully quiet 2016, initial public offerings both current and future have rebounded with gusto through the first four months of 2017.
So far, 45 IPOs have priced this year – nearly three times as many as at this point last year, according to Renaissance Capital, which tracks initial offerings.
The rebound started with Snap Inc. (NYSE: SNAP)’s $3.4 billion IPO in March – and has been followed up by offerings from the likes of Cloudera Inc. (NYSE: CLDR), Okta Inc. (Nasdaq: OKTA), and Mulesoft Inc. (NYSE: MULE).
It was a spring day back in 1992. My buddy Tim had clambered to the top of an under-construction townhouse – sent by his boss to start sheeting the roof trusses on the four-story structure.
Tim (a pseudonym, since this is a true story) – a fellow muscle-car nut and a guy my best friend, Harry, and I had known since high school – was working as a carpenter. Indeed, he was one of the best you’d find.
Tim’s life was about to change – forever.
Before Tim climbed up into the rafters, his boss – the site foreman – had said that all the trusses had been nailed down a day or two before. Once up on top, trying to reposition himself, my buddy temporarily straddled two of the squat lumber triangles.
Those trusses suddenly started to spread.
They weren’t nailed down.
Tim grabbed at the closest truss – but lost his handhold when it rolled under his weight.
And he fell.
What actually happened was that he plunged through the rectangular floor openings at each story – openings that would hold the staircases needed to climb from the ground-floor doorway all the way to the top.
My friend remembers getting both his arms, at chest level, onto the edge of one of those openings on the third or second floor – a move that slowed his fall and probably saved his life.
But he still slammed into the ground with a force that, even today, makes my skin crawl to think about.
And he was a denizen of an entirely new world.
A world of doctors, operations, physical therapy…
I’m sharing this story here today for a reason.
A bunch of reasons, actually.
I’m going to tell you about a biotech stock that I like a lot that focuses on the very real problem of chronic pain. It’s a company that’s looking at this malady in new ways.
But I also want to show you how to find still more stocks like this one – companies that are establishing whole new paradigms in biotechnology, life sciences and pharmaceuticals. It’s a brand-new business – one that I’m jazzed to tell you all about.
It’s been shown time and time again that the first entities to establish a strong base of business in a young and fast-growing market can reap major benefits. Being first in on an opportunity in a growth industry usually means huge profits… and leaves your competitors perennially trying to play catch-up.
After Snap Inc. (NYSE: SNAP) released its first quarterly report as a public company, investors did not like what the saw. And they punished it – sending shares down 20%.
Michael doesn’t like the stock either – yet – but he does see a “silver lining” in that report. It’s something Snap-curious investors should be keeping an eye on. He revealed what he saw last night during an appearance on CNBC World. Check it out below…