I want to take some time today to go over each of our current position holdings and to give you an update on how our portfolio is performing.
While True Momentum is currently in its prelaunch phase, I’m still keeping track of our three stock recommendations just like I would in either Extreme Fortunes or Profits Unlimited.
So, with that said, let’s dive into our three stocks…
On Monday, March 6, Thor Industries Inc. (NYSE: THO), which is our recreational vehicle (RV) maker, reported its earnings for the second quarter of 2017. Just as I suspected, the company is experiencing amazing growth. Sales were up by 63%.
However, if you’ve been tracking our portfolio, you’ll notice that Thor is currently down by about 5% from when I first recommended it, and you may be wondering why that is if the company’s numbers are so strong.
I can tell you that this is directly related to the market makers and the market insiders. You see, hedge funds will often come in and buy stocks, and in the process bid them up, because they hope that the results will be far above what other investors in the stock market are expecting.
Their goal is simply to make a small amount of money in a short period of time — sometimes this will be over the course of a few days, and other times it may even happen overnight — and if those gains don’t materialize, then they get out. They’ll dump their stock for whatever price the market makers or the investment banks will give to them. This might be 5% or 10%, sometimes even 15% lower than the price that they initially paid for the stock.
However, once that selling period is over, regular investors who are interested in medium-term and long-term gains … investors like you and me … can then come in when the price of these shares is trading at a bargain and bid them up.
I believe that this is the exact same setup that we’re going to experience with Thor. The selling that you’re seeing will slowly end, and then you will see the stock start to tick up. Remember, market makers like nothing better than to create volatility in the market to try to shake investors out of good positions. They want us to get out of Thor, but we’re not going to take part in their manipulative games.
I’m telling you this now because I don’t want you to worry. Thor is easily the dominant maker of RVs in the U.S., it has always been a good company, and it has always managed to operate at a profit in what has typically been a difficult place to make money.
Additionally, I believe that Thor Industries is in the midst of experiencing a boom because of the fact that the millennial generation likes RVs. They like to take these vehicles to go camping and to go on trips, which makes Thor the best company to be able to benefit from this trend.
So for these reasons, Thor is still a great buy. If you haven’t done so already:
Action to take: Buy Thor Industries (NYSE: THO) up to $120.
Cognex and USG Corp.
Moving on, I’ll briefly go over Cognex Corporation (Nasdaq: CGNX) and USG Corporation (NYSE: USG), both of which are up since I first recommended them.
Cognex is our Internet of Things (IoT) driven machine-vision company that reported results earlier in February and had absolutely fantastic numbers. The stock moved up after earnings were released and has continued to move up since. In just a few weeks, we’ve experienced an almost 15% gain.
If you haven’t already done so, please take the following action:
Action to take: Buy Cognex Corporation (Nasdaq: CGNX) up to $80.
Lastly, USG Corp., which is the dominant maker of drywall in the U.S., is up by over 2%. I believe that USG’s numbers will continue to gain momentum as more people in the millennial generation — people who are currently 18 to 34 years old — arrive at their mid-30s.
These people will want to settle down and start families, which will in turn require that they have more living space. So they will buy homes, in addition to all of the other things that are associated with the American dream. And in doing so, there will be a significant rise in home building, and USG is the primary company to benefit from that because every home is now made out of drywall.
So, if you haven’t done so already:
Action to take: Buy USG Corporation (NYSE: USG) up to $35.
All told, our portfolio is in great shape, and if you’ve invested in these stocks already, then great job. This is just a small taste of what’s to come.
Subscriber Access Information
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If you have any questions for me regarding either the trading strategy or our recommendations, or would simply like to let me know how your positions are doing, you can reach me at firstname.lastname@example.org. While I may not be able to answer every question individually, I will do my best to address your concerns in future updates.
I will be back to you in two more weeks with another True Momentum stock report, so stay tuned — there are many gains ahead.
Editor, True Momentum