I’m a big believer in radical honesty. Good, bad, or in between, I tell the truth. And I can almost guarantee you’ve never heard a true story like this… First, if you missed my note yesterday, I showed you why we’ve entered a rare window of opportunity to make large gains in a small corner of the stock market. In short, prices are stretched to a rare extreme and practically must snap upwards. The only other time in my professional career I saw this setup was in early 2020. It led to realized gains for my readers 422%, 399%, 376%, 252%, 251%, 177%, 117%, and 102%. I’ll show you how exactly how to collect those type of profits this time around – maybe even bigger - at my first ever RiskHedge 5X Phase Summit on March 28 at 2:00 pm ET. Online attendance is free, but you must register in advance here. Now, here’s the truth… I had to go through hell to get that string of triple-digit profits for my readers. I’m going to break a rule of our industry here. The rule is “keep quiet about your mistakes.” It’s a dumb rule. I’m human. I make mistakes. If that admission deters someone from following my research, bye. The truth is, the timing of my Kopin (KOPN) recommendation was about as bad as it gets. It was 2019. Covid-19 isn’t a thing yet. I’ve unearthed what looks like the holy grail. A tiny augmented reality stock with an unsurmountable technology lead over its much larger competitors. It looks like a shoo-in to hand us 500%+ gains. I publish my recommendation. I buy the stock along with my subscribers – as I always do. I even go on a very popular investing podcast and talk up the stock to tens of thousands of fans. Then Covid-19 rocked the world. Stocks plunge. At one point, Kopin shares sunk to $0.19. That’s when my phone rang. It was Dan, my publisher at RiskHedge. And Chris Reilly, my editor. “Maybe it’s time to sell Kopin?” Dan started going through the math. “A stock down 60% has to rise 150% just to get back to even. Do you think it’s best to cut our losses?” “No,” I said. “If Kopin fails to execute, I will admit defeat and move on. But that is NOT what’s happening here. This is a mass panic that will soon pass. We should be buying with both hands here, not selling. This is a generational opportunity.” Although I was genuinely confident, I was hurting on the inside. Readers who followed me into the stock were sitting on losses. That’s my responsibility, mass panic or not. And I knew some readers would panic sell, no matter how strongly I urged them to stay strong. It made me sad. I’ll always appreciate that Dan and Chris trusted my judgement. “Okay,” Dan said, after a pause. “If that’s what’s best for readers, we support your decision. Make sure you’re in constant contact with your readers—times like this are when they need you most. I did exactly that—sending a series of emails emphatically urging readers not only not to sell, but to buy any quality small stocks they could afford. So you know I’m not exaggerating, here’s an alert I sent on March 18, 2020—when the world was falling apart. The market bottomed exactly 1 week later. Kopin would gain over 5,600% (!) from its bottom in under a year (!!)… My readers and I didn’t buy at the bottom. So we “only” realized 399% gain—just a hair short of the 5X I was looking for. And Kopin wasn’t an outlier. In the aftermath of Covid-19, we closed 10 positions for an average gain of 200.65%. Why am I telling you this? Because markets are in the same spot again. War and inflation have investors more scared than they’ve been in years. Remember this chart I showed you from the Financial Times yesterday? It’s a key valuation ratio for small stocks. As you can see, it’s reached an extreme only seen twice before this century—with Covid-19 being the last time. As you can also see, the window of opportunity doesn’t last long. It snaps back fast, like a rubber band. Leading to very large gains that are easy to miss if you don’t act decisively. During the last snapback, my readers locked in the following trades—most of which were huge winners: Magnite (MGNI) gain of +421.93% eXp World Holdings (EXPI) gain of +375.95% Aterian (ATER) gain of +35.12% Personalis (PSNL) gain of +250.96% Comtech Telecommunications (CMTL) loss of -7.65% ShockWave Medical (SWAV) gain of +177.25% Clearfield (CLFD) gain of +252.00% Zynex (ZYXI) gain of +102.24% Magenta Therapeutics (MGTA) loss of -0.39% Kopin (KOPN) gain of +399.04% For reasons I’ll explain at the RiskHedge 5X Phase Summit… The mixture of factors now present in the markets could produce profits 2X–3X larger this time around. Hope to see you there this Monday, March 28 at 2:00 pm ET. Register at this link. Chris Wood
Chief Investment Officer – RiskHedge PS: If you own stocks that are down a lot now (it’s okay, almost everyone does)… this summit is a must-attend. Get your name on the RiskHedge guest list by signing up here. | 