- Created on Friday, 01 July 2011 15:30
- Written by Sara Nunnally, Managing Editor, Smart Investing Daily
- Hits: 1597
Yesterday, Jared told you about the huge price moves in MasterCard (MA:NYSE) and Visa (V:NYSE). That was a great call on his part. But he also talked about a style of investing called "bottom-fishing."
Bottom-fishers look for severely beaten-down stocks they can pick up for cheap. Their theory is that these stocks have fallen so much that they couldn't possibly fall any farther. That means it's time to buy. You can make a lot of money with this style of investing.
Like Jared said, "Unrealized potential can create huge gains in a stock." Jared also said, "But you must do your homework and know a great deal about a company and its sector."
Bottom-fishing isn't for everyone.
You have to do a lot of research for every stock you want to invest in. You almost have to be an expert in the sector you're watching, and your timing has to be perfect.
But there's one service that's making bottom-fishing nearly an art, and it's fast becoming one of our most popular publications.
In fact, the companies this editor picks aren't your run-of-the-mill cheap companies. This editor runs stocks through a painstaking process of elimination. If he finds a fundamental flaw in the company's business model, he doesn't recommend it... If the company's not a dominant player in its field, he doesn't recommend it.
The analysis that goes into picking these companies is truly fierce.
I've introduced you to this editor before... He's Michael Robinson, and the new service he's founded is called 180 Trader.
At first glance, Michael's service sounds straightforward. Find beaten-down stocks ready for a turnaround.
But as Jared showed you yesterday with his example of Nokia, picking turnaround stocks isn't easy, and it requires a lot of expertise. That's what Michael brings to the table. His service could be a great asset to your portfolio as the pain of market volatility takes the air out of your sails.
The hidden potential in these turnaround gems is huge... and we could all use some home runs in our retirement accounts right about now.
Why am I bringing this up now? The information we send to you is all about helping you make smarter investing decisions. We make investing less complicated, not an easy task when you look at the whirlwind of information out there.
Maybe you don't have 20 years left to build up your retirement nest egg, and you've been hit hard by the Great Recession.
Bottom-fishing might be attractive to investors who need high-pressure gains in a relatively short time. But the risk of bottom-fishing might be too great for someone who's still working to support his or her family, and doesn't have the time to go through the rigorous analysis needed to find the right turnaround gems.
Michael does all the work for you in 180 Trader and there are plenty of opportunities out there... even with all the bumps in the road.
Don't think everything is peaches and cream, though. The marketplace is a very challenging arena. And 180 Trader sees the obstacles. Michael says:
I also feel strongly that hundreds of corporations have come out of the recession battered but ultimately stronger. In a nutshell, that's what 180 Trader is all about -- finding those hidden gems ready to rebound with strong stock appreciation.
On the other hand, we have two major trends working against us this summer. They seem to be gathering force, at least temporarily. I think these factors explain much of the market's recent volatility. ...
As a trader I look at these dynamics as a challenge. Yes, it makes timing turnaround investments more difficult. But I do believe companies that manage their way through these obstacles will make great investments.
Actually, I continue to build my list of turnaround candidates. We may have a few more bumpy weeks ahead but in the long run the tide will turn in our favor. The market's correction will eventually reverse and give us lots of new buying opportunities.
Recognizing these challenges, and finding a way to work with them, is not as common as you might think. We all know the economy has problems, but knowing what kind of effects these problems have on you and your personal wealth is the first step in protecting your hard-earned money.
That's what's important to us here at Smart Investing Daily. And it is what should be important to you.
Editor's Note: Last Thursday Michael wrote his readers and told them to buy shares of a tiny company poised for a big rebound. He said his Triple Cross system flashed a buy signal. By the next day, shares of the stock surged by double-digit proportions. He nailed it.
There is a reason our newest service is quickly becoming one of our most popular. Michael's advice works. There is still time for you to get in on his latest play. Follow the link to see what it is.
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