Investing in a “Market of Stocks”… Not the Stock Market - Louis Navellier cashes in four times over.
- Matt McCall celebrates the asset class outperforming the market… and bitcoin.
- The Daily 10X Stock Report shows us the “Tesla of China.”
- Neil George hits the road for his latest recommendation.
- Eric Fry sits down with the CEO.
- Wade Hansen and John Jagerson ponder two data points to predict this bull run’s length.
- Ken Trester books a triple-digit winner.
- Dan Weiner and Jeff DeMaso have some portfolio changes to make.
In the months that followed COVID-19 hitting the United States, we’ve seen one of the most powerful concepts in investing play out in real time. You can boil this concept down to a simple saying: “It’s not so much a stock market as it is a market of stocks.” As the COVID-19 lockdowns ravaged the economy from February 12 to March 23, the market values of many airline stocks plummeted more than 75%. Cruise ship operators, concert operators, and movie theater companies suffered equally horrible declines. The lockdowns choked off oil demand, and so many energy companies’ shares plummeted as well. Meanwhile, the profits and market values of many grocers and so-called “shelter in place” companies stayed strong and even reached all-time highs during the COVID-19 crisis. This is why we often say, “It’s not so much a stock market as it is a market of stocks.” Our experts know this concept inside and out. And that’s why their trades and recommendations are doing superbly even in the midst of a crisis. To see what they were up to this week, read on… Booking 258%, 195%, and 87% Gains… on One Stock Louis Navellier is an investor, not a trader. So he doesn’t often get the chance to celebrate big wins. Instead, he tends to stash stocks in his members’ portfolios – and watch them go up… and up… up. But on Friday, he did get to break out the Champagne. After noting that its business had been negatively impacted by the coronavirus pandemic, he recommended his many members in several of his services to cash in on their big gains in Paycom Software Inc. (PAYC). Paycom helps businesses streamline their human resources departments with cloud-based management systems. However, many businesses have reduced staff and operations due to COVID-19, which has limited their need for Paycom’s products. Growth Investor members booked 40% gains… Breakthrough Stocks members booked 87% gains… Platinum Growth Club members booked 195% gains … Accelerated Profits members booked an astounding 258% profit. Elsewhere in Louis’ world, in the Accelerated Profits Weekly Profit Guide on Tuesday, he explains why he’s never bought into the “sell in May and go away” philosophy – and why he recommends remaining invested in portfolio stocks through the traditionally bumpy summer months. “The reality is that May, June and July are historically seasonally strong months, and I’m expecting our stocks to continue to exhibit relative strength, especially in mid-June,” he says. In addition, the first-quarter earnings announcement season is quickly drawing to a close, so Louis reviews the latest results from portfolio companies and takes a closer look at the companies scheduled to announce results this week. Plus, he recommends a new stock: SpartanNash Co. (SPTN) , the fifth-largest food distributor in the U.S., as well as the leading food provider to U.S. military commissaries. Take a look here. Then in a Thursday alert to Accelerated Profits members, Louis recommended another two new stocks: Axcelis Technologies Inc. (ACLS), which for more than 40 years has provided equipment and services to leading semiconductor companies around the world… and Meridian Bioscience Inc. (VIVO) , a 43-year-old “medtech” company that develops a variety of diagnostic products that we need during the COVID-19 crisis. “The small-cap surge continues!” Louis cheered in the Breakthrough Stocks Weekly Update on Friday. “The majority of stocks closed out the month of May on a high note. The broader indices all climbed nicely higher over the past four weeks, but small caps certainly stole the show. In fact, the Russell 2000 climbed 9.7% higher in the past four weeks, while the S&P 500 gained about 7%.” In the update, Louis reviewed that market action… and how it has helped his portfolio’s small-cap stocks. He also took a closer look at Arbor Realty Trust (ABR), which remains a “Hold” in the Breakthrough Stocks portfolio despite some gut-wrenching volatility over the past few weeks. Here are the details. Then in Friday’s Growth Investor Weekly Update, Louis took a look at what’s actually happening beneath the surface of the stock market. “I still think that we’re well-positioned to profit in the current economic and market environment,” he writes. “Our… stocks will be ripe for the picking, as institutional investors look to shore up their portfolios in mid-June. And that should give our Buy List stocks a nice boost heading into the second-quarter earnings announcement season.” Read all about it here. Finally, Louis issued two Special Market Podcasts this week, to help all his members keep up during these turbulent times: Tuesday and Wednesday. Cryptos’ Powerful One-Two Punch Matt McCall released the new Ultimate Crypto Monthly Issue on Tuesday. “There is no better time to be invested in altcoins. There is still time left to get in early, but that window is about to close. Demand is rising as altcoins become more mainstream almost by the day. Plus, the big catalyst I have been talking about for months, bitcoin’s ‘halvening,’ has finally happened,” Matt wrote. “Now it is time for altcoins to start to make their big moves higher.” In the new issue, Matt talks about how cryptocurrencies have traded since bitcoin’s halvening… and several factors coming together that should drive prices up in the coming months. And while he expects the truly big gains to come over time, Matt also explores how Ultimate Crypto’s altcoins have outperformed both bitcoin and the stock market since the service got started in January. Click here to read the full issue now. Meanwhile, despite the action in cannabis stocks last week being positive, Matt noted on Monday that his Cannabis Cash Weekly winning streak has ended at 15. Here’s how the recent action played out. Via covered calls, two weeks ago, he sold Cara Therapeutics Inc. (CARA) for a 6.8% gain in just 10 days. On Friday, May 22, Cronos Group Inc. (CRON) was called away with a gain of 0.2% That may not sound great, but an investor who simply bought the stock would have been down 10.4%. Also that Friday, Canopy Growth Corp. (CGC) was called away at a loss of 19.7%. “We have 16 closed trades overall, with a winning record of 15-1,” Matt writes. “As much as I hate to ever have a loser, we have to expect to take a loss from time to time. It’s just reality.” With the rally, the Cannabis Cash Weekly portfolio is now empty for the first time in months. We’ll see if he fills it back up next week. Matt and Louis team up for Power Portfolio 2020 – and they released their new Monthly Issue on Thursday. “We may analyze stocks a little differently, but we agree on a lot of things – including staying disciplined, investing in high-quality stocks, and the future of America. We also agree that selling in May is a bad idea, and that selling in the middle of a panic is a bad idea – if you own good stocks,” they write. “We do in our portfolio, and we stayed invested in those quality stocks in May and through the panic sell-off a couple of months earlier. We’re now reaping the benefits.” In the new Power Portfolio 2020 Monthly Issue , Matt and Louis look at how their stocks have bounced back much faster and stronger than the overall market… talk about how both the recovery and the stock market might play out from here, and why they’re confident they own the stocks investors want to buy… and have updates on each of the stocks in their portfolio. Biotech, EVs, the Cloud, and Video Games The Daily 10X Stock Report kept on rolling during its second week. On Tuesday, we introduced you to an antibody-drug conjugate (ADC) pioneer. The science behind ADCs is quite complex. But, at a high level, ADCs leverage what are called monoclonal antibodies, which have unique targeting capabilities, to attack only cancer cells during cancer treatment, and leave healthy cells alone. In other words, ADCs are chemotherapy without the killing of healthy cells, and therefore, without the side effects. ADC pioneer Mersana Therapeutics Inc. (MRSN) is a small, $584 million clinical-stage biopharmaceutical company that is developing various ADCs. The company’s leading product candidate, XMT-1536, is in Phase 1 clinical trials for treatment of ovarian cancer and is widely considered to be one of the leading ADCs in the market. Go here to learn more. While there’s no doubt that Tesla Inc. (TSLA) has been a huge success in the booming EV market, it’s fair to say that Elon Musk’s company is already valued to be a dominant auto maker for many years to come. In other words, if you’re looking for explosive gains in the EV market, it may be time to look for the next Tesla. With that in mind, on Wednesday, we introduced you to NIO Inc. (NIO). Over the next several years, the $60 billion legacy communications market will be disrupted at an unprecedented pace, as the 90% of companies who haven’t yet adopted cloud-based communications software rush to do just that. There are lots of players competing for those $60 billion as they flow from on-premise to cloud solutions. But few appear as well-prepared and competitively differentiated as 8×8 Inc. (EGHT), a $1.6 billion cloud-hosted software provider with two distinct features that separate it from the pack in the crowded cloud communications market. We told you all about it here on Thursday. The video game peripheral market, including headsets and keyboards, is traditionally incredibly niche and low growth. However, over the next decade, important technological breakthroughs and societal transformations will push the video game peripheral market into an era of unprecedented growth. So in Friday’s Daily 10X, we showed you how to play this coming boom by buying an overlooked, undervalued small-cap gaming stock that could rise 1,000%… or more: Turtle Beach Corp. (HEAR) . It’s a small, $150 million company which dominates the video game peripheral market in the U.S. and Canada, commanding more than 40% console gaming headset market share in those two geographies. When You Can’t Fly but Need a Vacation “The U.S. economy is in terrible shape. From March through the opening weeks of May, the number of folks filing for unemployment has reached some 36.5 million. And it’s possible the unemployment rate will reach 25%. The first quarter saw the initial downturn in GDP, and the current second quarter may well show a quarter-over-quarter drop of 32.7%. This will put the U.S. economy well into recession,” Neil George wrote on Tuesday to introduce the new Profitable Investing Monthly Issue . “At the same time, the Federal Reserve as well as the administration and Congress are pushing trillions into the economy, which will help stem the ill tide and provide for recovery. The U.S. bond markets are rallying dramatically, reflecting demand and the belief in stabilizing credit conditions. And the stock market has turned up from the low on March 23, reflecting optimism that the economy will experience a recovery. However, the economy is not in the clear yet.” So, in the June Issue, Neil discusses the timeline for recovery and how it may play out. He also presents three new “Buy” recommendations: recreational vehicle (RV) manufacturer Thor Industries Inc. (THO), videogame developer Activision Blizzard Inc. (ATVI), and Microsoft Corp. (MSFT) (we assume you know what Microsoft does). And as always, Neil reviews his core holdings in the model portfolios and how they’re working through this mess. Then on Friday, Neil found he already had to raise the “buy under” price on one of his new recommendations. “We all want out of our homes if only for a break. And many of us haven’t had the opportunity for some leisure or travel for some time. No one should be thinking about getting on a plane unless they absolutely have to. And hotels and resorts? No way… not until we get some certainty about guaranteed cleansing,” he wrote. “RVs provide the ability to travel safely away from other folks. Thor Industries is primarily focused on North America and builds and sells motorhomes, trailers, and related accessories and parts. Its brands are well known, including Airstream, Heartland, Jayco, Starcraft, and many others… As more investors are figuring out its strengths and its value prospects, I am now raising the buy-under price.” Go here for the details. A Special Video Event On Thursday at Fry’s Investment Report, Eric Fry sat down for an in-depth conversation with InvestorPlace CEO Brian Hunt about the year so far… and what’s in store for the second half of 2020. Topic No. 1, of course, is the global pandemic and how it has supercharged what I’ve been calling the “Technochasm” – America’s technology-fueled wealth gap. Beyond that, Brian and Eric talked about some of the biggest opportunities out there… including tech stocks and gold… and some of the biggest dangers… including the junk bond market and debt-ridden corporations. Plus, Eric answered as many of your questions as he could. If you missed it, you can tune in here. Then on Friday, Eric noted some important changes happening to Investment Report portfolio holding Sprott Inc. (SPOXD). It’s getting up-listed to the New York Stock Exchange – and is about to get a lot more Wall Street attention. That’s great news, he tells us. Also on Friday, over at The Speculator, Eric cheered some good news from the company behind one of his latest recommendations. Earlier this week, Micron Technology Inc. (MU), which isn’t due to report earnings for another month, substantially boosted its revenue and earnings guidance. When Eric first recommended a bullish options play on Micron on March 16, he said, “The coronavirus could help boost semiconductor demand. Almost every commercial or recreational activity that eliminates or reduces human interaction relies on semiconductors.” Now that looks to be true. New Plays on BAC and MSFT On Tuesday in Strategic Trader, sensing that investors feel that the worst is over – “in the sense that while a return to normalcy may take quite a while, the economy isn’t likely to get worse” – Wade Hansen and John Jagerson saw a good opportunity for us to open a new position in Microsoft Corp. (MSFT) while put premiums are high. ”We expect investors to return to tech in the short term as expectations for more business spending and investment rise,” they say. “This has been one of our favorite positions over the last two years because Microsoft’s fundamental performance, reliable dividend income and core-business growth have continued to attract investors.” Go here for their recommendation. On Wednesday, not wanting to fight Wall Street despite the uncertainty, Wade and John jumped into a new bullish trade on Bank of America Corp. (BAC) . “We believe the news of an $824 billion stimulus plan from the European Union and the continued reopening of the U.S. economy will overshadow low consumer sentiment numbers in the short term,” they say. For their final move of the week, on Friday, Wade and John offered up some instructions on what to do with their expiring play on The Walt Disney Co. (DIS). For their Wednesday Weekly Update, Wade and John confirmed the bullish rebound we’ve been experiencing for the past two months is not a “dead cat bounce.” But still they wondered: How much longer are stocks likely to continue moving higher? “According to two of our favorite relative-strength charts, this move has an excellent chance of continuing into the summer,” they say. Plus, don’t miss Wade and John’s Wednesday Webinar. Midweek Triple-Digit Profits Power Options Weekly members got to celebrate some triple-digit gains after Ken Trester recommended on Wednesday that they sell their call options on Mattel Inc. (MAT) for 108% profits. For Friday’s Power Options Weekly Trades, Ken initiated bullish call option plays on Arena Pharmaceuticals Inc. (ARNA), Trinseo SA (TSE), and Catasys Inc. (CATS) calls… and bearish put option plays on Moderna Inc. (MRNA) and iShares MSCI Hong Kong ETF (EWH). Over at Maximum Options, Ken initiated a bullish play on Incyte Corp. (INCY) on Tuesday… a bearish play on SPDR S&P Retail ETF (XRT) on Wednesday… and a bullish play on Raytheon Technologies Corp. (RTX) on Friday. Also on Friday, he booked 44% profits on his March 9 bullish play on the iShares Silver Trust (SLV). Plus don’t miss Ken’s Friday Weekly Review. Not Holding Their Breath In their Independent Adviser for Vanguard Investors Thursday Hotline, Dan Weiner and Jeff DeMaso recommended several changes to their model portfolio. “Frankly, we’re not holding our breath a bit when it comes to the rebound. While we still think the intermediate-term prospects for the economy should be measured against medical data — specifically control of the pandemic outbreak and development of a vaccine that can be deployed in volume on a global basis — Wall Street seems satisfied with increasing restaurant reservations in Texas and Georgia and a pick-up in air travel,” Dan and Jeff write. “Count us as worry-warts or skeptics, but we don’t think the all-clear’s been sounded just yet by a long shot.” With that said, you’ll want to hear what they have to say about the trade we mentioned above. Plus, don’t miss what their “Fund Family” colleague Jim Lowell had to say in his Thursday Hotlines for Fidelity Investor and Fidelity Sector Investor. Thanks for joining us at the Omnia Roundup. We’ll see you back here next week. Regards, 
Christopher Skokna
Senior Managing Editor, InvestorPlace Omnia
| May 30, 2020 13:04:25.207 CUSTOMER SERVICE You can reach us via the following e-mail address: Feedback@InvestorPlace.com or by calling us at 1-800-219-8592. Copyright © 2020 InvestorPlace Media LLC
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