Are You Ready To Pull Back The Curtain?
When the top brass at StreetAuthority approached me earlier this year about my Project Rainmaker system, I was stoked. That’s not a word I use, really. But in this case, it fits.
How could you not be excited about a proven technique that has been the surest and easiest path to stock market riches? And by proven, I mean a success rate of near 100%.
The only question, really, is the size of the gain… On average, you can expect a 25% pop, according to a study by Ernst & Young. But much larger premiums of 40% to 60% are routine… and triple-digit gainers aren’t unheard of.
That’s before the multiplying effect of stock options – which my followers and I use regularly, by the way.
You see, while I’ve been studying this for years, I never expected to launch Project Rainmaker in the middle of a global pandemic with the world turned upside down. When we laid the initial groundwork last year, there was no talk of social distancing or shelter in place or bending the curve.
But that’s why investors must always be on their toes, ready to adapt to whatever the economy throws at us. Between you and me, I was relieved to see the overheated market let off some steam. The occasional pullback is healthy and keeps valuations in check. And indiscriminate panic selling (like we saw in March) goes even further… divorcing stock prices from the underlying value of many quality businesses.
Value All Around…
Take cell tower owner Crown Castle (NYSE: CCI), a former holding of mine. Between February 20 and March 20, the stock lost a quarter of its value, plummeting from above $160 to below $120. Yet, there was negligible fundamental change in the business itself. In fact, the company never altered its 2020 earnings outlook.
The market is often quick to reconcile these pricing discrepancies. In this case, the rebound was just as fast as the decline. By April 20, CCI was back in the $160 range again – a full round-trip.
Still, not every quality oversold stock has fully recovered. There are attractive discounts as far as the eye can see.
Don’t believe me? Well, as I wrote recently, I have proof:
I can tell you that most of my holdings across a wide variety of industries are still well below their pre-Covid levels. In fact, a quick stock screen reveals that while the S&P itself is near a record high, more than 1,800 large-cap stocks are languishing 20% or more below where they were trading six months ago.
So if you’re a CEO or private equity manager with vaults of idle cash waiting on the sidelines, this is an opportune time to pounce. And as it turns out, America’s richest CEOs have stockpiled $4.0 trillion worth of cash to go “all-in” on a “hidden” corner of the market that could make them (and you) a ton of money in the months ahead.
All of which is to say, buckle up.
A Little About Me… And What To Expect
At this point, you may have read my recent article this “hidden” market… If not, take a few minutes to familiarize yourself with that piece.
Stocks can pop seemingly overnight in this market — but you need to know where to look to find them beforehand. That’s why I’m hosting a one-of-a-kind briefing next Tuesday, where I’ll pull back the curtain on this secretive market. (Details here.)
But before we get to that, there are a few other things you should probably know about me. For starters, I’m a fundamental investment analyst, not a chartist. That means I pay far more attention to things like sales and cash flow than esoteric patterns and moving averages.
I also tend to be a long-term investor, not a rapid-fire day trader. Admittedly, the nature of Project Rainmaker means that we’ll be moving in and out of positions a bit faster than my premium income newsletter, High-Yield Investing, for example. Don’t be too surprised if you end up holding some of the stocks you find in this market for a few months or more. But as I’ll show you next Tuesday, we’ve had more than our fair share of quick gainers, too.
You should also know that I am not much of a gambler – particularly when it comes to your hard-earned money. But we’re not exactly investing in guaranteed government T-Bills here. There will be some recommendations that just don’t pan out. The goal of Project Rainmaker is to minimize portfolio strikeouts while still clobbering home runs.
Let’s be honest. We’re all here to score big gains. But everyone has their unique risk tolerance and time horizon. That’s exactly why all of Project Rainmaker’s trades are separated into two distinct categories.
Swing for the Fences: This is where you’ll find our more aggressive recommendations (including options) with triple-digit potential gains.
Get on Base: Home to lower-risk, higher-percentage recommendations. These run-scoring singles and doubles have less downside risk but can still add up fast.
You need not be a baseball fan to understand these two objectives and manage your money accordingly. More cautious investors should probably choose sparingly (or in smaller dollar amounts) from the first group and focus primarily on the second. Subscribers seeking maximum potential upside might do just the opposite.
Finally, let me stress that there will always be concrete reasons behind the stocks my Project Rainmaker system identifies. I don’t believe in simply spitting out stock tickers for you to buy and sell just because I said so. I only recommend companies that I am perfectly comfortable holding based on their own merits — and I fully intend to share those merits with you.
3 Questions For You To Think About…
With all that said, I hope you’ll join me next Tuesday for this special briefing. In the meantime, I’ve got three questions for you to think about…
1. Why are CEOs at America’s most flush-with-cash companies — who are sitting on more “dry powder” cash than at any time in the past two centuries — raising even MORE cash right now as we speak?
2. What hidden asset class are they gearing up to INVEST it in, at historic levels?
3. How can you beat them to the punch?
I’ll address all three of these questions (and more) next Tuesday. I hope to see you then.