New PCA Features

Profit Catalyst Alert just passed its six month birthday. While I’m pleased at how most of the portfolio weathered the rocky start to the year and am more confident than ever in the names I’ve picked, I’m eager to share with you more picks and more ways to make money from my research.

Soon I’ll be adding two features to Profit Catalyst Alert. I’ll be including option recommendations and adding a new table of higher-risk stocks.

The option recommendations will be based on my experience in short selling—profiting when a stock drops in value. A simpler way to profit from a falling share price is with put options, and I’ll start recommending some of these soon. My process for recommending them is described in detail on page 3.

The table of higher-risk names will be called the Sandbox Portfolio. These are companies that I’m researching but haven’t pulled the trigger on yet.  I review hundreds of stocks before I choose the ones for the Profit Catalyst Portfolio. I find many that have terrific growth stories but are riskier than I’d like. Maybe they’re more expensive than others in their industry or carry a lot of debt, or simply are too highly priced. But this doesn’t mean they’re not good prospects, and the list of companies I’m considering will give you more investing ideas and another window into my thinking process.

I’m excited to share these new features with you as they offer more ways for you to profit from my service. Thanks again for being a loyal subscriber.

Stock Talk

Robert J

Robert J

I don’t really know what to do with SEDG. I am down 22 % since I bought it and it keeps sliding down. Finally yesterday, I dumped 40% of my holding, I could’nt hold any longer based on the signals I am getting from other sources. I am waiting for the coming financial results for my next move.
ATSG, BC and CRTO are stagnant, Going Profit Catalyst is my worst decision in 2016!

Jon D.

Jon D.

Hi Robert,
According to the stock traders almanac when the US is having a Presidential election please note this is regardless of candidates the markets don’t react too well. I have experienced this before. I think you and all all investors will see a difference in November. Of course this does not buoy our spirits here and now. Also we all need to BEAR in mind August is a very trying month usually. The best 6 months typically start in November. Make that late november. Here is another thing that has a great effect in stocks in my observations. Somewhere around time when stocks are 3/4 way through Earnings season, its like a balloon that looses a lot of air. It is depressing til you figure this out. Then what we must do is take some moolah off the table when stocks are buoyed up. I know its frustrating it is for all of us. Investors fall victim to this if locked in to non flexible investments which is why I prefer stocks , ETFs and options. if you get a chance to look into Tasty Trade its free you can learn a lot on Options.

Why right here on Catalyst alert Linda made an alert on an option to sell a put recently in just two days I made a nice profit. So learn about options and add that club to your bag if not already in them. Of the symbols you mention I have made repeated profits in BC on several occasions. What I do is simple I look at a chart with Bollinger Bands. Right now the Bands are in a “squeeze” this means increased volatility, but you need to watch the prices on the chart to see which direction it takes us in. Here is a link to my chart on BC: http://schrts.co/BahFqr
As you can see it is up which is more than many stocks are doing. Look at the heading at the top you will see it is a Mid Cap stock. It has a rank SCTR stands for stock charts technical rank. The number today may be saying there is room to go up. If it was reading 92 that is a better number but less room to grow. Note at top it says yes to options, and I have traded options on it to. Note the Blue line this is the 50 day moving average it is above that which is very good.we can see 50.96 was a recent high. Here is what I think you could look for not today but soon the next candle will be higher that will be a sign of the bottom is in. Then you hang in there til it hits or goes thru the upper band and take a profit. Right now RSI is above 50 this is the start point of an uptrend. Look for MACD histogram to flip above 0.0 that can be considered a buy. Same goes for PPO it is a short term momentum indicator. CMF shows $ coming in. StochRSI is a much faster version of RSI when it dips like this then goes above .5 things are going your way.

I hope some of this may be helpful. Be patient and take into consideration the type of year it is as well as time of year. I understand I want to be aggressive I am rarest to go man go – however the mkt is not just now. OI just looked at the home page of stock charts. NYSE is red Sp 500 barely up, Toronto red, S&P100 red, nasdaq 100 red. Now BC is on the NYSE, and here is a fact when an index is down 4 out of 5 stocks in that index are down. Sometimes they say cash is King. So be in the King Position til you see signs of life in mkts. Really it is not Linda, who works hard it is things beyound us. I’d say hang in there and you may be a happy investor in December. Things can take a long time to work. In the mean time do research, your time will come. But you are following the good advise of William O’Neil prolific author when you let some of your losing trade go.
Best Wishes for the future,
Jon D.

Linda McDonough

Linda McDonough

Robert,
I share your frustration in SolarEdge. In my experience stock prices eventually follow good fundamentals but this stock continues to trade down despite beating earnings and issuing solid guidance. I will be issuing an update today with a stop loss on the stock as I don’t want to see subscribers losing any more money in this name. For the record it has $3.00 per share in cash and is still growing earnings 20% but trading with a PE of 8.
As for the rest of the portfolio, some names have been stagnant recently but are doing well for the year. Most stocks do not go up in a straight line and many use the dips to buy more. I follow the fundamentals quite closely and do my best to keep subscribers up to date on any changes.
We have some real winners like Drew Industries which is up 25% since June 1st and Lydall which is up 11% in less than a month. As I noted earlier I plan on introducing more option trades to help subscribers take advantage of bearish trades. I do hope you find some value in those trades.
Best,
Linda

Melody Pfingsten

Melody Pfingsten

Hi Linda,
I was wondering about sedg? Earning are coming our 8/11 do you anticipate them being good?
As everyone I am down significantly on this purchase; somethings that is a reason to double down. I am looking for some guidance.
BTW, your other picks have been pretty good to great for me!
Melody

Linda McDonough

Linda McDonough

Melody,
As I noted before I apologize, your comment was one that I missed while traveling. Obviously SolarEdge’s numbers are out now. I will issue an update today but I continue to be amazed at the stock action based on solid numbers. I also own the stock and am as frustrated as you. I’m working on putting a stop on the stock.
Best,
Linda

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