Every year there are certain stocks that dramatically outperform the market.
While these “true market leaders” are rare, our strategy is geared towards identifying them before each begins its major surge of appreciation.
In order to identify and invest in true market leaders before they’re discovered by the market, we seek to uncover the mismatch between:
To find and evaluate these mismatches, we take advantage of two important and proven types of analyses that help us see the full investment picture.
Both are important together…
Price-action analysts can gauge near-term supply/demand dynamics.
But they’re typically unaware of the underlying economics that influence price.
Fundamental analysts may find compelling stories that can drive a stock’s price higher.
But they often forget they are dealing with the market—and its psychology.
In our fundamental research we look for concrete information or events, called “catalysts,” that we believe will lead to substantial growth of a company’s earnings—and value—in the months and years ahead.
The Catalysts We Evaluate
New products, markets or partners, or a report of earnings growth
Governmental, economic, legal, industry, health, military
That can serve a very large market
Identifying companies with clear, consistent pathways to future earnings growth…
Which is a key determinant of a company’s long-term business value…
And a prime attribute of a true market leader
Once our fundamental research has established the near-term likelihood that a particular stock will begin a major price advance, we turn to price-action analysis to further corroborate its probability and zero-in on when it will happen.
Our synthesis of price-action and fundamental analyses puts us in excellent field position…