The Reliable Indicator That Signals Triple-Digit Gains

Francisco Bermea's picture

Wednesday, September 2, 2015 - 10:30am

by Francisco Bermea

There's a little-known indicator that's making a small group of investors a lot of money.

It consistently beats the market, often with less risk than buy-and-hold investing. It can flag exactly which stocks are about to jump double and triple digits in the coming days... weeks... and months.

I call this indicator the "Alpha Score."

I'll tell you more about this indicator in a second, but just know that a stock's Alpha Score can range from 0 to 200. The higher the number, the more potential the stock has.

For example, you've probably never heard of Westmoreland Coal (Nasdaq: WLB). It operates six surface coal mines and two power generating units in the western United States. The company looked promising when we recommended it on Dec. 18, 2013. Westmoreland had sold 95% of its future production under long-term contracts, and the market for coal looked stable.

But that's not what attracted us to the stock. What most investors didn't know about Westmoreland is that it had an Alpha Score of 158. Less than 1% of stocks have a score that high at any given time.
 

The stock bounced 33% higher within two weeks. And within six months, the stock had returned 100%. When the Alpha Score sell trigger finally told us to sell Westmoreland late last year, we had locked in a 134% gain in less than 12 months.

Now, not every stock with a high Alpha Score will jump this much. But if all you're looking for is a way to boost your portfolio without too much risk, even far smaller gains can make a big difference.

In fact, the man behind this system -- Tom -- is one of the most risk-averse traders I've ever known. Yet that doesn't stop him from using the Alpha Score to deliver quick double and triple-digit gains to his readers.

As a safety-obsessed trader, here's why Tom trusts this system...

The Alpha Score is derived by combining two of the market's most effective triggers -- a technical trigger and a fundamental trigger.

The technical indicator, or "Alpha Trigger #1," as we call it, has been proven to beat the market by traders and academics alike.

One study by an investment manager named James O'Shaughnessy tested over 60 different market indicators. He conducted exhaustive back-tests of various fundamental and technical variables to identify which, if any, were predictive of future performance.

He looked at all kinds of metrics people use to buy stocks: low price-to-earnings ratios, low price-to-book ratios, high dividend yields, high profit margins, etc.

His research demonstrated that this technical indicator consistently beats the market.

While the technical trigger helps us find stocks most likely to move higher, "Alpha Trigger #2" ensures that the underlying company has solid financials and enough resources to keep its business growing.

Unlike earnings and other financial data, the second trigger can't be easily manipulated by accountants. It's a crucial indicator of success, and is a favorite of legendary conservative investors like Warren Buffett and Peter Lynch. The indicator can tell us if a company is likely to buy back stock, increase its dividend or invest in new growth opportunities.

Based on my experience and the system's performance so far, I'm confident the Alpha Score will continue to find big winners. In fact, there are currently five stocks in our portfolios flashing extremely rare Alpha Scores of 185 or higher.

If you want to be able to consistently book double and triple-digit winners, it's important to have a system. And the system behind the Alpha Score is the most reliable I've seen so far. If you're interested in learning more, I've prepared a short presentation that pulls back the curtain on this secret indicator -- and even reveals the name and ticker symbol of the top stock flashing "buy" right now.

You can access it here, free of charge. But I urge you to check it out now. This video will come down soon.

Francisco Bermea does not personally hold positions in any securities mentioned in this article.
StreetAuthority LLC does not hold positions in any securities mentioned in this article.