Facebook Twitter
Now With Over 23,000 Reviews!
Sign up now

Ferrari IPO (RACE) – The Best Way to Trade it…

Oct 26, 2015

I’m still shocked investors chased Ferrari (RACE).

As noted October 13, “It’ll be the little guys [you and me] holding the bag at the end of the day with a company that’s not really looking to dramatically increase sales, limiting future growth… The overpriced, over-subscribed stock will eventually give way to a sizeable drop, leaving many to ask why they bought in the first place.”

Here’s a company that’s not looking to dramatically increase sales, greatly limiting future growth… and “smart” investors chased it only to watch it fall well off the highs.

Now, as the shine wears off, as the news fades, the stock will crater. Your best bet is to wait for it to crash and buy shares on the cheap when and if sales pick up.

 

Valeant Pharmaceuticals (VRX): Citron Research Cripples…

Oct 21, 2015

Valeant was halted several times today, as the stock lost 38%.

Once Citron Research alleged it was the “Pharmaceutical Enron,” shares plunged.   By the close, shares were down 28% to $105.98 on allegations its using “phantom pharmacies” to boost sales.

While the Valeant CEO called the report erroneous, it did little to stop the bleeding. However, hedge fund manager Bill Ackman believes the sell off is overdone, buying two million shares on the news.

While we’d like to recommend a buy on massively oversold conditions, it’s best to wait for the news to die out first. If we buy too early as investors run scared, we stand to lose money. As soon as the news fades, we’ll issue a quick buy.

 

 

Caterpillar (CAT): Bank a 165% Gain in Weeks…

Oct 15, 2015

On October 14, I recommended selling to close just half of the CAT November 65 calls for up to 150% gains in two weeks. Today, after watching the stock struggle in a rally, I’m recommending that you sell to close the second half now.

The option last traded at $6.10. From a $2.30 entry, that’s a 165% gain.

 

 

Caterpillar (CAT): A 150% Gain in Two Weeks…

Oct 14, 2015

It doesn’t get any easier than this…

On September 27, we recommended a trade on the CAT November 65 call up to $3. We had an entry price of $2.30 shortly after.

The stock was found oversold on MACD, RSI and Money Flow. So we bought the fear and waited. Two weeks later, the stock is up to $70 a share, taking the call option to $5.75 – a 150% gain in two weeks.

Consider selling to close half of the trade to secure the gain.

Oftentimes, we are told to ignore stocks making new lows.  But ignoring them can -- and will -- cost you.

After 16 years of system development, market strategizing, and back testing, I noticed an unbeatable trend that most herd-like investors run from.

We’re often told:

“Never buy a stock hitting a 52-week low…”

“Stocks in downtrends tend to stay in downtrends…”

“It’s too risky… It’s not safe…”

“Any stock hitting a 52-week low will always be weak…”

Or, “nothing is more destructive to amateur investors than thinking that a stock trading near a 52-week low is a good buy…”

But that’s not true. Such lows can highlight great opportunity.

As I’ve learned over the years the time to buy is “when blood is running in the streets… even if that blood is your own.”

Those were the very words of Baron Rothschild, whose family is now worth a staggering $400 billion. Time and time again, the family kept cool heads during times of absolute panic, making a fortune from the Battle of Waterloo and countless other events.

I’ll admit it’s a hard maxim to follow.  Your instinct is to follow the herd. It’s counter-intuitive to run into a burning house not knowing if you’ll come out alive.

Investors run scared.  And they don’t know it but they’re selling everything at the wrong time. But as Warren Buffett will tell you:  “Be fearful when others are greedy and greedy when others are fearful.”

Every one is afraid of the burning building.

But the best time to “rush” a “burning building” is when things look grim for big companies that will never see the inside of a bankruptcy courtroom.

 

 

The Ferrari IPO: A Cheaper Way to Trade It…

Oct 13, 2015

Next Monday, newly minted shares of Ferrari [RACE] will roll onto the showroom floor.

A potential offer price of between $48 and $52 a share will give way to explosive upside, given high demand and investors giddy with anticipation.

Institutions are already frothing at the mouth, ready to unload at intra-day highs.

Unfortunately – as always – it’ll be the little guys [you and me] holding the bag at the end of the day with a company that’s not really looking to dramatically increase sales, limiting future growth…

The overpriced, over-subscribed stock will eventually give way to a sizeable drop, leaving many to ask why they bought in the first place.

We all know the IPO game has always been rigged against the little guys. But there’s a simple, proven way to profit each and every time…

The First Trust IPOX-100 (FPX)…

I’ve traded the First Trust IPOX-100 Index (FPX) since it was $21 a share. I’ve bought long before the Visa, MasterCard, Twitter, Facebook, and First Solar IPOs… And I’m continuing to buy long before the Ferrari IPO rolls on to the floor…

For those of you unfamiliar, this in the Index that tracks the U.S. IPOX-100 index, which includes the 100 largest, typically best-performing and most liquid IPOs in the U.S. It measures the average performance of U.S. IPOs during the first 1,000 trading days.

And as you can see, it’s performed beautifully for years.

With this one, you’ll never have to worry about chasing an oversubscribed, overvalued IPO. In fact, you can own the hottest IPOs out there – all of them – at a low price of just $50 a share these days.

 

 

Page:   ... 49 ...