We can’t help mention the ‘C-word’…

Friday, 15 December 2017
Melbourne, Australia
By Kris Sayce

  • Not just for bad guys (and gals)
  • Few people even know these super stocks exist

The Sun rose in the east this morning.

And with the same inevitability, today, we shall once more discuss the ‘b-word’ (bitcoin) and the ‘c-word’ (cryptocurrencies).

More below…

Markets

Overnight, the Dow Jones Industrial Average closed down 76.77 points, or 0.31%.

The S&P 500 fell 10.84 points, or 0.41%.

In Europe, the Euro Stoxx 50 index ended the day down 25.53 points, for a 0.71% fall. Meanwhile, the FTSE 100 fell 0.65%, and Germany’s DAX index lost 0.44%.

In Asian markets, Japan’s Nikkei 225 index is down 188.53 points, or 0.83%. China’s CSI 300 is down 0.16%.

In Australia, the S&P/ASX 200 is down 16.36 points, or 0.27%.

On the commodities markets, West Texas Intermediate crude oil is US$57.13 per barrel. Brent crude is US$63.30 per barrel.

Gold is trading for US$1,254.77 (AU$1,636.17) per troy ounce. Silver is US$15.92 (AU$20.76) per troy ounce.

The Aussie dollar is worth 76.69 US cents.

Bitcoin is US$17,097.50.

Not just for bad guys (and gals)

Check out the following headlines on our Bloomberg terminal this afternoon:



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Source: Bloomberg
Click to enlarge

This are the top 19 stories on the Bloomberg terminal related to Bitcoin.

Of them, 14 are negative. Granted, there are duplicates.

Regardless, it reminds us of comedian Bill Hicks’ line about the news ‘never reporting good drug news stories’. It’s the same with bitcoin and cryptocurrencies. The mainstream can’t help themselves.

Even when the ‘punchline’ of a bitcoin story is positive, they have to talk about drug dealers, terrorists, and pimps.

It’s as though bitcoin is the only thing that criminals use. Yet, drug dealers and criminals use the banking system too.

Hence why the Commonwealth Bank of Australia [ASX:CBA] is in such hot water right now. And yet, you hardly see headlines in the press blaming crimes on the use of fiat currency.

But this fits in with a point your editor made at a staff marketing meeting this week. We often remind our staff that we’re an ‘ideas’ business. We don’t sell newsletters (although we do) and trading services (although we do). We sell ideas.

These are ideas we hope will help you to make a lot of money from a radical new investment opportunity…or ideas that will help prevent you losing a lot of money in the event of a catastrophe.

Importantly, these are ideas the mainstream press rarely discuss. And when they do discuss them, typically, the press doesn’t see the full scale of the opportunity.

That brings us back to bitcoin and cryptos. The point we made at the marketing meeting is that bitcoin has been in the mainstream for at least the past five years. Not every day, but from time to time.

However, the mainstream’s focus has barely changed. Instead of focusing on the future cryptos…or blockchain technology…or how cryptos may turn out to be a more robust money system than fiat money….the mainstream talks about ISIS, systemic risk, and the US government seizing bitcoin.

That’s the difference between the mainstream and our ‘big ideas’ philosophy.

We have no idea if bitcoin and other cryptos will ultimately have any value or not. Our personal fear is that bitcoin’s current price of around US$17,000 will mean that it’s over-valued to the tune of around US$16,500.

Yes. We mean that the price could fall 97%. By the same token, your editor could be way off the mark. Our in-house crypto experts, Sam Volkering and Ryan Dinse, say the bitcoin and crypto prices could go up even more.

After all, folks thought Sam Volkering was a lunatic earlier this year when he set a short-term bitcoin price target of US$10,000. At today’s price, his ‘bullish’ forecast, was conservative.

In truth, there’s no telling where it could go from here. That’s why we’ve launched three crypto services this year.

Knowing that cryptos are still a new thing for many folks, we launched Secret Crypto Network, to bring them up to speed and show them the opportunities on offer. We then launched Crypto Tech Investor to help people potentially profit from the ICO (Initial Coin Offering) boom. And just last week we launched Extreme Crypto Trader.

Our aim is to cover every investable angle of this hot (and perhaps, crazy) market. We think we’ve done that. And what’s more, we’ve added them to our highest available Alliance membership level — Alliance Partnership.

We reopened the doors on membership this week. But, only for a limited time. The beauty of Alliance Partnership is that when we add new services to the package, those who are already members get these extra services without paying one extra cent for them.

That’s the case for those who joined Alliance Partnership during the last intake a few months ago. Since then, we’ve added around $7,000-worth of value to their membership, and it didn’t cost them anything extra for it.

How does it work? Well, it’s pretty simple. For details, check out the latest Alliance Partnership invitation here.

Cheers,
Kris

PS: Only two services are not included in Alliance Partnership: Quant Trader and Microcap Trader. They are both such unique and exclusive services we couldn’t include them. But aside from them, every one of our other services is included. Plus Alliance Partnership members gain access to every single new service we launch in the future — which would include the five new premium services on the drawing board for 2018. Again, details here.


Few People Even Know These Super Stocks Exist
Jason McIntosh, Editor, Quant Trader

How many people are born famous?

Not many, right?

With a few exceptions, fame is a by-product of success. The spotlight typically only shines on people after they’ve made it.

A successful company isn’t that different.

Most businesses start out with a founder and an idea. They then take time to grow. Once you hear about them, the business is probably a large corporation. 

So how do you identify these companies earlier?

How do you buy before the spotlight shines on them?

Well, I’m going to tell you about this in a moment. You’ll see how it’s possible to buy high potential stocks before many people know they exist.

But first, think about this…

Big names start small

Buffett, Gates and Branson.

These are among the most famous people on Earth. We link them with wealth and success. You’d have to go a long way to find someone who hasn’t heard of them.

But it wasn’t always this way. They started out as anonymous as the next person.

Take Richard Branson for instance…

His career began selling discount records from a university magazine. The next step was a recording business. Then later an airline and hundreds of other ventures.

Branson’s fame and wealth grew massively over the years. Sources say his net wealth is around US$5 billion. All this from a humble beginning.

Now, imagine you could put your money alongside Branson’s.

When do you think was the best time to invest?

The answer’s obvious.

You make the most money by getting in early. This is typically when the growth rate is greatest. It’s then a matter of holding on for the ride.

But remember: Branson began as an unknown. The trick was to identify him as a potential superstar before he became a household name.

Share traders face the same dilemma.

The ASX has over 2,000 listings — far too many for most people to analyse. This often causes traders to focus on the larger stocks in the ASX 200, or even the ASX 100.

But there’s a problem… 

The best returns often come from outside the ASX 200. These are the emerging stars that few people know about — until of course they become much bigger.

Check this out:



chart image

Click to enlarge

This graph shows the hypothetical gains for Quant Trader’s overflow portfolio since live signals began. It includes every ASX stock to trigger a buy signal — both large and small companies.

The calculations assume $1,000 on every signal. There’s also no allowance for costs and dividends.

For comparison, here’s the ASX 200 for the same period:



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Source: BigCharts
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While the gains from Quant Trader’s signals are making new highs, the ASX 200 is still around its 2015 peak.

So how big are the stocks behind Quant Trader’s gains? 

Well, during the week, I did some analysis to find out.

This is what I did…

I took the 50 best-performing stocks from the portfolio. These are ahead by an average of 71.8%.

I then sorted them by their ASX sub-index — the ASX 50, 100, 200, 300, All Ordinaries (top 500), and those outside the top 500.

Here’s the result:

ASX Index

ASX 50

ASX 100

ASX 200

ASX 300

All Ordinaries

Outside Top 500

Number in QT top 50

4

3

10

10

9

14

Two-thirds of Quant Trader’s best performers are from outside the ASX 200. People solely focusing on the bigger stocks are missing a lot of opportunities.

And to be clear, I’m not talking about tiny speculative stocks.

The typical company in the ‘Outside Top 500’ category has a market cap of around $160 million. These are serious businesses with the potential to get a lot bigger.

Have another look at the portfolio’s gains.

I’m sure you’ll agree, there’s a lot going on outside of the household names. Quant Trader’s strategy that identifies stocks before they become famous is paying off.

The invisible stars

So what do these stocks look like?

Well, let me show you three examples from the portfolio.

First is Xero Ltd [ASX:XRO].

Don’t worry if you haven’t heard of it. You wouldn’t be the only one. A lot of the companies in the Overflow are a mystery to most traders. 

XRO produces cloud-based accounting software for small-to-medium-sized businesses. It’s in both the ASX Small Ordinaries and the ASX 300. But it’s yet to crack the ASX 200.

Here’s the trade chart.



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Click to enlarge

Quant Trader’s entry was at $17.11 on 2 June 2016. The trigger for the buy signal was a subtle shift in momentum. This was after a lengthy period of trendless trading.

XRO is currently up 76%. This makes it the portfolio’s 13th best performer.

The next stock is venture capitalist CVC Ltd [ASX:CVC].

Check this out:



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Click to enlarge

CVC’s market cap of around $280 million gets it into the All Ordinaries. But it’s not large enough for the ASX Small Ordinaries or ASX 300.

You probably won’t see this company in many broker reports. It’s simply not on the radar for many analysts — at least for now. Maybe they’ll notice it if it keeps growing.

CVC is currently up by 73% from its entry level.

The last stock I’ll show you isn’t even in the All Ordinaries. With a market cap of around $146 million, it’s truly unknowable for many people.

Have a look at this:



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Click to enlarge

Jumbo Interactive Ltd [ASX:JIN] has been in the portfolio since 6 July 2016.

The company is an online reseller of lottery tickets, both locally and overseas. Shares are already up 89%, and the trend looks likely to continue.

It will be interesting to see if JIN eventually cracks the ASX 200. That’s often when the mainstream media finally catches on and brings it to the public’s attention.

Just think, there are another 13 stocks like JIN in the Overflow’s top 50. The average gain for these is currently 58%. And many people don’t even know they exist! 

It’s important to note that Quant Trader doesn’t only find emerging stocks. About half of the top 50 stocks are in the ASX 300…or higher. These are large businesses.

So don’t worry if you prefer companies with more familiar names. Quant Trader’s job is to bring you the opportunities. You then decide which ones suit your situation.

But keep an eye out for the ‘invisible stars’.

You’ll be one of the few who know them by name.

Until next time,
Jason

Editor’s note: Next week, in a special video series exclusive to Port Phillip Insider, Jason reveals his secrets to finding tradeable stocks and then actually trading them.

Look out for details, starting Monday.

Quant Trader sources all images and graphs unless otherwise stated.