When we launched Breakthrough Tech Profits two months ago, we knew our stock picks were good, but we also thought our timing was, too. We expected a flood of investor money would soon flow into technology-intensive companies that could generate bigger profits in a stagnant global economy. Still, we didn’t think some of those bets would begin paying off so soon.

Two months ago Joe Duarte and I recommended buying a couple of LEAPS (long-term call options) on McKesson and Western Digital, figuring that sometime over the next 18 months they would return nice profits. We didn’t have to wait long. Last Friday, only seven weeks after opening those positions, we closed them out for gains of 44% and 52%, respectively. If you missed those opportunities, I provide two more LEAPS recommendations in my article on page 7 based on our proprietary formula for identifying undervalued large-cap tech stocks.

Last month, I recommended two small-cap tech stocks as potential takeover targets. Although it’s still too early to know how they will play out, one of the companies, Applied Optoelectronics, has already gained more than 20%. That’s pretty good, but the 38% gain Joe Duarte booked in The WhiteWave Foods Co. earlier this month was even better. In this issue, he makes a compelling argument for owning shares of Seres Therapeutics (page 2), a biotech company on the leading edge of infectious disease treatment.

Also in this issue, Ben Shepherd has found a small Internet security firm with a growing presence in counter-terrorism. Recent deadly attacks on civilians, here and abroad, have raised awareness of the threat terrorism poses, and companies such as KEYW Holding Corp. are certain to see a lot more money flowing into their coffers as military and law enforcement agencies around the world ramp up in response to the danger.

Also, as many of you are new to Breakthrough Tech Profits and unfamiliar with our approaches to picking stocks, we include in this issue explanations of our two proprietary formulas for finding undervalued companies: My IDEAL stock-rating system, and Dr. Joe Duarte’s EBIS model. Both have a proven record of identifying profitable investments.