Copy Our Trades and Generate Consistent Weekly Profits Trading the Most Undervalued NYSE/Nasdaq Stocks with the Strongest “Buy-Side” Order-Flow.
752 Live Trade Alerts Published. 7/10 Profitable Trades.
We email our trade alerts every Sunday, with clear buy, hold and sell instructions. Below you can view our trade-by-trade performance history. Every trade is shown (both winning and losing trades).
3 Simple Rules. We Only Buy Stocks When…
(1) The share price has dropped significantly to oversold levels, often hitting rock bottom, and trading near intermediate-term lows.
(2) Despite the drop in the share price, the company exhibits strong fundamentals, with low debt-to-capital, positive growth, stable operating margins, and sustainable free-cash-flow.
(3) Most significantly, the stock is attracting fresh interest, backed by a spike in ‘buy-side’ volume from major investors, including deep-research hedge funds and company insiders.
When these three distinct factors align, this is our cue/signal to join the trade.
Every day, our computers screen and monitor thousands of NYSE/Nasdaq stocks, to find the potential winners based on this straightforward, common-sense three-factor logic.
We Pick Just Five Stocks Per Week…
From our daily monitoring, we collate all our research at the weekend, when all data is up-to-date, checked and verified. From 4,000+ NYSE/Nasdaq stocks, we then pick just five top-ranking stocks per week.
The weekly ‘select five’ are emailed to our subscribers every Sunday around 6pm.
Our Focus is on Trading Only the Most Oversold Stocks. But Never Too Soon…
There is an instinctual tendency for traders to look for cheap, heavily undervalued stocks. The lower the stock price in a company, the more ‘attractive’ the proposition to jump on board.
However, the vast majority of traders lose money when they buy a cheap stock based purely on a whim, or based on sub-standard/limited research.
Our approach is different. We don’t just trade stocks based on a single buy-sell indicator, or simply because a stock looks like a bargain. Neither do we buy stocks purely on company fundamentals alone.
Our method adopts a fully-integrated three-factor process, detailed below…
Factor #1: Shortlist the Most Oversold Stocks…
The initial objective is to identify (and shortlist) stocks which are deeply oversold. That means the stock has recently undergone a major selloff, currently trading at short-to-intermediate term lows.
Whether it’s Apple, or Delta Airlines, every stock in the NYSE/Nasdaq undergoes a major correction from time to time, where prices drop more often and more deeper than they rise.
The stock price declines until a strong support level is found. This support level – also known as an ‘exhaustion point’ – kicks in whenever there exists a demand/supply equilibrium.
In other words, there are enough buyers at that point which provide the stock with a cushion/support.
Whenever a stock undergoes a major correction, professional buy-side investors continually track and evaluate the ‘worth’ of the company, especially at these support zones.
Professional investors apply multiple valuation ratio’s such as relative price-to-free-cash-flow (Price/FCF), operating return-on-capital (ROC), operating-cash-flow-to-equity, discounted-cash-flow-valuation, etc., to determine the ‘worth’ of the company, juxtaposed against the current stock price (market cap).
The object of this evaluation is to identify when a stock is trading below what is deemed a reasonable valuation (worth) of the company. At this point, a deeply undervalued trading opportunity (cheap entry-point) arises. A ‘quality’ company does not stay cheap forever…
Factor #2: Check Each Company’s Fundamentals (Underlying Strength)…
We maintain a continually updated list of the most oversold stocks which are finding support.
Our stock screening process then checks each qualifying company against ‘qualitative’ fundamentals. This involves analyzing the company’s quarterly profit/loss, cash-flow, and balance-sheet statements…
The word ‘quality’ plays an important role here. We don’t just trade a company because it is oversold and looks cheap. The company has to exhibit strong underlying fundamentals.
The process is largely automated (we do our research at the weekend when all data is checked/up-to-date).
Built into our stock selection process are rules which ensure each qualifying company exhibits positive (and sustainable) sales growth, industry-competitive free-cash-flow yields, stable gross and operating margins, strong operating returns on capital (ROIC), and low debt ratios.
A quality business which maintains a healthy profit and loss, cash flow, and balance sheet, with growth projections relatively intact, is unlikely to stay low for a prolonged period. This is important to grasp.
In fact, in the majority of cases, any negativity in the company’s outlook is already largely factored into the stock price, often over-shot on stocks which become overly discounted.
As indicated earlier, it is at this point that there is strong support in the stock (demand/supply equilibrium), also known as an ‘exhaustion’ point where any further negative news has minimal impact on the share price.
At this point, a quality stock becomes a compelling strong-buy trading opportunity.
But again, however compelling the stock looks, we are not done. One additional factor has to complete the circle before a stock becomes a confirmed, strong buy…
Factor 3: The Confirmation Signal…
The final (and most critical) component is tracking the buy/sell activity (watching the ‘tape’). We employ highly sophisticated real-time demand/supply analytics which measure trading activity from large-buy-side block orders. This is where clear patterns emerge from professional buy-side investors.
Measurements include strong intraday and market-close ‘buy-side’ volume, insider (company executives) trades, and spikes in institutional capital-inflow.
We also watch NYSE/Nasdaq Level-2 screens (including Nasdaq TotalView) for market-depth, VWAP order-flow, time and sales executions ‘at the ask’, and long/short option activity.
Keep in mind, subscribers to not need to be familiar with these tools/jargon. Our in-house systems do the work with a clearly defined objective – to identify when our shortlist of stocks (from factors 1 and 2) begin to attract strong buy-side volume.
We Only Trade a Stock When All Three Factors Align…
Put together, these three factors form the basis of our trading method. We buy and hold stocks (with clear entry/exit instructions) based on these clear rules.
As experienced investors will note, using any one of the three factors may provide some value, but more often than not, it is hit-and-miss…
But integrating all three factors into one trading strategy forms a powerful, and consistently profitable synergy. This is our trading edge, the the reason why 7/10 trades produce a net gain.
Get Instant Access to Our Trade Alerts Free for 14 Days…
We can continue to talk about the profitability of the strategy, provide multiple trading examples, and reprint numerous positive testimonials we receive every week.
But we prefer actions over words…
We want you to watch and witness our trade-alerts first-hand, and experience winning trades independently, without any risk or commitment…
You can either spend hours trying to find the right stocks to trade, or capitalize on our 25+ years of research, trading experience, and applied technology, to do the heavy lifting.
Based on a rational, common-sense approach to trading stocks, fully encapsulated in the 3-factor strategy, our method has been proven to deliver consistent month-by-money and year-on-year profitability.
As a subscriber, you do not need to worry about every mathematical ratio or algorithm…
We do the deep analysis, and employ highly accurate, institutional quality data-systems (ICE Market Data, Compustat, Reuters and S&P-CapitalIQ), in addition to multiple confirmatory computations (including human checks), to deliver profitable, deep-research trading opportunities.
We select just five stocks per week.
Every Sunday, you will receive our ‘select five’ stocks of the week, based on the precise, three-factor stock-selection method described above.
You will also receive clear instructions, before we ‘sell’ a stock, and exit the trade.
The best way to experience the service is to sign up – it’s completely free for 14 days, then $139/quarter (cancel anytime). You will receive five stocks per week (ten in total) over the next 2 weeks, absolutely free.
To get started, click on the link below.
Upon recept of your subscription, you will immediately receive the latest five stocks, then the weekly ‘select five’ every Sunday, ready for the Monday-open.
If you have any questions, please get in touch with us, at any time.