I want to start off today’s update by first saying that I know many of you are wondering when the official launch date for True Momentum is going to be. While I had originally planned on rolling the full version of this service out in April, I also want to make sure that I provide you with the kind of quality content that you deserve. And, ultimately, I decided that in order to do that, I had to postpone our launch date by a few weeks’ time.
That said, we are very close to the full release date of True Momentum. It’s coming down to a matter of weeks now, as I’m just putting the finishing touches on the finer details of this service.
I want to thank you for being patient and sticking with me. I know that you’re excited about what’s to come and for new recommendations to be added to the portfolio — and I’m looking forward to sharing these with you.
But, until that time, let’s take a look at our three open positions…
Setting New, All-Time Records
I’m happy to announce that Cognex Corporation (Nasdaq: CGNX), our machine-vision company, reported its earnings and that its results were unbelievably good. The company reported that sales were up 40% compared to this time last year, stating that this was an all-time record for the first quarter of any year that they have been in business — both in terms of sales and in terms of profits.
So, Cognex is doing incredibly well.
On top of that, in the commentary, the company said that its industrial vision business — which is the main reason that we’re invested in this particular stock — is also doing incredibly well. Cognex can see that its customers are very confident and that they’re ordering its equipment at a fast clip, and the company expects these sales will continue to ramp up even more over time.
Based on these findings, I’m not at all surprised by the overall growth we’ve seen in this stock. As of right now, Cognex is up 29% since I first told you to buy it. So, if you’re already invested, great job. You should be sitting on a nice gain.
Moving on, USG Corporation (NYSE: USG), our premier maker of drywall, also reported its earnings for this quarter. USG’s sales were up 2.7% and the company indicated that business is strong, yet you’ll see, if you track our portfolio, that USG is currently down by around 7%.
I want to remind you that not all stocks are going to run up immediately, like Cognex did. In fact, it’s been my experience, both in my personal trading and in my two other services — Profits Unlimited and Extreme Fortunes — to see a stock tread water for two or three months and then explode higher.
Sometimes a stock might even go down a bit before it soars higher and recovers a loss.
In fact, I can tell you that this very scenario played out recently in a stock that I recommended to my Extreme Fortunes subscribers. That particular stock went down by as much as 15% for no real reason other than the fact that the company was relatively new to the market. Then, in a matter of weeks, the stock started to rise again — and as of now, it’s sitting on a healthy 10% gain.
So while I know that it’s disconcerting to be in a stock that’s down, I don’t want you to feel like that’s the end of the story. USG is in a very good position because this company controls one of the most important components of every house: the walls. And at this point, it’s very difficult to build a house in America without using USG’s products. Because of this, its sales are going to go up, its profits are going to go up and people who come in to buy this stock are going to see the price move exponentially higher.
Additionally, USG reported that it’s going to start spending $25 million to buy back its stock, which is great news for us. That’s because whenever there’s a scarcity of a stock in the market and you’re an owner of it, your shares automatically become more valuable.
The last stock in our portfolio, Thor Industries (NYSE: THO), is also down right now by about 13%. I want to just reiterate that Thor is a relatively small and illiquid company, and that insiders own a lot of its stock, meaning that there are fewer shares floating around the market. When this is the case, you’ll see that a stock tends to be much more volatile because there aren’t that many people buying and selling it.
Thor, however, still has everything going for it that I told you about in your first update. The recreational vehicle market is going through a massive boom period because the millennial generation favors outdoor activities and traveling. So, while Thor may be in a loss position now, I fully expect for this stock to turn around and for it to become an outstanding winner for us.
As I’ve told you before, nothing ever happens in a completely straight line, and investing in the stock market is no exception.
That’s all I have for you today, but I’ll be back to you soon with more information regarding the official launch of True Momentum. In the meantime, feel free to visit our website for both the subscription archives and our ePortfolio, which you can find by clicking on this link:
Again, I thank you for your patience.
Editor, True Momentum