San Francisco, CA – When we spoke on Aug. 16, I noted that I was about to give an investor presentation at the MoneyShow here.
Honestly, it couldn’t have gone any better. My conference room was packed with investors anxious to hear about my system.
Call me crazy, but I’m thinking the fact that I had the word “free” in the title may have had something to do with it.
I wanted to follow up with you today to give you more details about my talk, titled “How to Own Great Tech Stocks For Free”.
And I’m going to do that by giving you a play-by-play breakdown of the seven steps you need to follow.
This isn’t a lot of theory. It’s why members of my Nova-X Report entry-level monthly newsletter ended up owning five free stocks so far this year.
And right now, I’m going to walk you through the steps and also tell you about the “secret formula” I left out of my formal talk…
Now then, my entire methodology for Nova-X is to end up owning best-of-breed tech stocks for free.
But don’t get me wrong.
Yes, we have to risk our hard-earned money. And no, not all the investments work out.
However, it bears noting that over the last several years I have given readers of my paid services 192 double- or triple-digit gains.
That’s the power of having a savvy tech veteran hand-picking winners for you.
As I told my audience, tech has been a core part of my life going back to my teenage years. My dad was a senior military editor at Aviation Week & Space Technology magazine and we’ve talked about breakthroughs in the field ever since.
I also served as an advisory board member to a Silicon Valley venture capital firm. Plus, I was a strategic advisor to a dozen high-tech startups.
I drew heavily on this background to come up with my winning seven-part formula for owing tech leaders for free.
Free Tech Stock Step 1: Find Great Operators
I can’t emphasize enough how important it is to find well-run firms. We want solid cash flow, high margins, and good earnings because we are looking for best-of-breed leaders.
We’re looking for companies targeting large and growing markets. That tells me the company is focused on the right areas and has lots of room for additional growth as the sector expands.
Ideally, we want to also find companies that crush on earnings. That’s because share price often follows earnings growth. But I give a young firm with huge upside a pass on per-share profits if sales growth is off the charts.
I told my audience that we want to “hire” visionary leaders. Remember, the CEO works for us, so we are looking for folks who can create billions in value for their investors.
Free Tech Stock Step 2: Separate the Signal From the Noise
To create real wealth, you have to ignore the hype and find companies that have rock-solid fundamentals.
I told the audience this is the hardest of the seven steps to follow. The reason is simple – Wall Street loves to hype stocks, many of which are just plain dogs.
Companies themselves put out a lot of fluff to try to convince investors their firm is a “sure thing.” Plus, these days ever Uber driver seems to have a “hot stock tip.”
I recommend a blend of fundamental and technical analysis. Make sure you know the company has its financial bases covered.
After that, be sure you have some kind of charting system you enjoy using. I like to tell folks that “every chart tells a story.”
That’s one of the things I bring to Nova-X, a unique technical system with a proven track record of spotting big winners.
Free Tech Stock Step 3: Ride the Unstoppable Trends
Look for stocks in red-hot sectors because they offer the best chance for life-changing gains.
Here’s the thing. Technology today is so pervasive that several fields are in trends that are not worth millions or billions… but trillions of dollars. You just need a small part of a huge field to make big bank.
Just look at these breakout sectors and what they will be worth in the next few years. These estimates come from a range of sources:
- Cloud Computing, $820 billion
- Artificial Intelligence, $5.8 trillion
- Fintech, $7 trillion
- 5G High-Speed Cellular, $12.3 trillion
- Internet of Things, $14 trillion
Free Tech Stock Step 4: Focus on Growth
Companies that have the strongest growth rates almost always offer the highest stock returns.
That’s because these firms are disruptors targeting huge markets with massive growth. I like to remind investors that today, every business is a tech business. They all need things like the cloud, chips, sensors, payments technology and much, much more to operate efficiently.
Tech is so valuable today because it offers huge scale with great profit margins. For instance, Facebook Inc. (FB) has two billion active monthly users and 34% operating margins.
By contrast, General Motors Co. (GM) sold roughly eight million cars last year. It has operating margins just one-seventh that of Facebook.
Free Tech Stock Step 5: Look For Doubles
This is where Albert Einstein enters the picture. He is reputed to have said that the most powerful force in the universe is compound interest.
What that means for us is the higher the yearly sales or earnings growth, the faster we double our money. This is a huge part of owning great tech stocks for free.
Now it’s time to use my doubling calculator. Mathematicians call it the Rule of 72. Let’s divide a compound profit growth rate of 30% into the number 72. We find that it should double in just shy of 2.5 years.
Think of it this way. If you put $10,000 into your favorite tech stock and it averaged 12% gains a year, you would have $452,592 at the end of 40 years – without putting in another dollar.
Thank you, Professor Einstein.
Free Tech Stock Step 6: Use The Cowboy Split
This is my unique staggered-entry system. We take Wall Street’s adage to use a 20% stop-loss on new entries and turn it on its head.
We actually double down. This has proved invaluable at keeping Nova-X members from getting stopped out of great tech stocks that later go on to produce big wins.
I cited the unnamed Nova-X stock where we doubled down and went on to get gains of 48%. In doing so, we beat the market by 344% in about a year.
Free Tech Stock Step 7: Always Take a Free Trade
This is the Holy Grail of tech investing. Whenever my members get a double, I advise them to sell half for 100% gains.
Doing so means they then own the stock for free. After that, they are playing on the “house’s money.”
They can decide whether they want to hold for years or protect their profits with trailing stops. They’re in the driver’s seat.
Add it all up, and you can see this is a powerful plan for achieving the kind of financial freedom most folks only dream about.
And as a way of saying thanks for joining today’s conversation, I have a powerful bonus for you.
See, I didn’t give away the “secret formula.” It’s a hidden tool I rely on so my readers can pile up the profits.
To learn about this powerful tool, simply click here. It’s not something you want to – or can afford to – miss.
Cheers and good investing,