How to Find Today's Value Stocks Karim Rahemtulla, Head Fundamental Tactician, Monument Traders Alliance | | | I am sure you've heard of a company called Nintendo... The Japanese company behind famed video games like the Super Mario Bros., Legend of Zelda and Donkey Kong series. Those video games were all the rage back in the late 1980s and 1990s. I still remember how hard it was to avoid those bananas in Super Mario Kart. But what happened later on, in the 2000s and 2010s, was shocking. Nintendo, the once-amazing video game company, was suddenly in trouble. At one point in 2014, the company had lost about $750 million. The stock was collapsing, dropping from almost $80 to just $13. But then something happened - a reversal. [Have You Heard of the Bargain in Today's Market? Don't Miss Out] Nintendo swung from that $750 million loss back to a profit of more than $1 billion over the next three quarters. So if you'd timed it perfectly and bought in at $13, you could've made 515% in profit over the next six years. Talk about a comeback! But why did this happen? And how can you learn to spot a comeback like this BEFORE a stock like Nintendo explodes so you can profit as well? This is a process I've spent my life mastering. And after years of trial and error, I found my groove during the Great Recession from 2007-2009. I'm really excited to bring this to you because we're now in the era of value stocks. Think about it... The markets are as volatile as ever. Inflation is rampant. Hardly any stocks are worth the valuations they're currently trading at. Even companies with strong fundamentals are going to crash in these markets. However, those same companies are going to recover FASTER than other companies. That's because these companies are truly good investments - not just trades. So when an investor can identify the difference between a good investment and a simple trade, he can make life-changing profits. That's why I've compiled this value checklist for you... Six Critical Factors for Value Stocks There are many ways to value a stock. But I've drilled it down to six critical factors. Keep this list handy. That way, whenever you see a company you might want to invest in, you can use this fundamentals checklist to make sure your research is sound. Here are the top six things I want to see when looking for a value stock... - Market leader - This is pretty straightforward. Ask yourself, "Is this company selling a particular type of product at a higher volume than its competitors?"
- Several streams of income - Does this company have other ways of generating revenue beyond its initial product offering? What other products/services does it offer?
- Big backlogs (if manufacturing) - Does the company have a lot of future orders that have not been filled yet? The forecast of future services/parts ordered will be an accurate forecast for orders in the year ahead.
- Strong cash generation capability - Does the company consistently produce cash flows from its ongoing operations?
- Established operations - Does the company have sound, effective systems in place so that it runs like a well-oiled machine?
- Large institutional ownership - Does the company have a large amount of its stock owned by large entities that manage funds on behalf of others?
That's it. Those are the questions you ask to identify a value stock. Now for the exciting part... Today's Last Great Value Stock There's a company out there that checks all the boxes above. This company's income, including equity sales, swung from a $4.3 billion loss in 2020 to a nearly $3.5 billion profit in 2021. Analysts estimate that annual earnings will rocket by more than 320% in 2022. It may end up being closer to 500% (similar to Nintendo's jump). The company also has a sales backlog of nearly $75 billion. And based on its current price, it might be the single best value buy in the history of the markets. Action Plan: Don't miss out on this all-time buying opportunity. Click here to view my latest presentation on what I call The Last Great Value Stock. There is a major catalyst on the horizon... an announcement coming in August... that I believe is going to make this one of the most sought-after stocks in the world. So now is the chance... Now is the opportunity to get in right as the recovery sends it soaring. If you're looking for a stock under $2 with 10-bagger potential or better in the years ahead... this is it. Click here to get the details. Good trading, Karim |
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