Your membership to the True Momentum research service is locked in!
Again, this service should be out in April. I will keep you updated in the weeks ahead as we get close to the launch date.
And when we launch it, you will be the first to know.
With that said, I mentioned that I would be giving away three stock picks that you get to scoop up.
I will give them to you in a bit (of course, if you want to cheat, scroll down and check them out), but I want to give you two “warnings” first…
Warning No. 1:
These Stocks Are Hitting New Highs (and That’s a Great Thing)
I want to mention this because so many people will see these stocks and think that they missed out on the opportunity to make gains.
After all, just in the last year, one is up 65%, another is up 123% and yet another is up 125%.
The natural reaction is to say, “Man, we missed it.”
But that’s the wrong reaction. This just means that big institutional investors are dumping their money in pushing the stock to new levels, and they are going to keep doing it.
Fact is, when a stock is hitting its 52-week high, I want to own it.
Now, you might be thinking that I am off my rocker. After all, Warren Buffett says, “Be fearful when others are greedy…”
And I agree.
That’s why we will not be chasing stocks that don’t have strong fundamentals. I’m doing my research to make sure these companies can support the price of the stock.
Fact is, in a perfect world, we would all love to “buy low and sell high.” The problem with that is this: Most of the time, a stock is low for a good reason. And even if it is low for a bad reason, it’s amazing how much lower it can go.
It’s much safer to “buy high and sell higher” … to ride the momentum.
Warning No. 2:
These Stocks Are “Expensive” (But That’s Not the Point!)
The stocks I am recommending today are priced around $30, $70 and $110.
And that does not bother me because I am confident that they will soon be priced at $60, $140 and $220 (or more).
You see, the issue here is that most people are looking at the price of the stock, but they need to be looking at the market cap.
A stock with a huge market cap can only grow so much … the Wal-Marts ($208 billion), the Apples ($693 billion) and the Johnson & Johnsons ($308 billion).
A stock with a market cap of a few billion dollars can grow into those sizes.
That’s where we want to be.
And these three stocks have market caps of $5.7 billion, $4.6 billion and $5.9 billion.
Point is, they have room to GROW, and as they do, the price of the stock will GROW.
And we make money.
With That Said, Here
Are the Stock Picks
Here you go…
Momentum Stock No. 1 — USG Corp. (NYSE: USG)
If you go into any house in the United States, there’s one thing you’ll find that’s common to them all: drywall. Some people call it Sheetrock or wallboard.
Whatever you want to call it, this is what all walls are made of in most houses built today. And USG Corp. (NYSE: USG) is the company that dominates the manufacturing of drywall today in the United States.
As you likely know from reading my articles in the Winning Investor Daily or my monthly Profits Unlimited newsletter, we have the largest generation in history — the millennials — getting ready to buy houses. That means lots of homebuilding for them as home inventory levels sit at 10-year lows.
Naturally, building a house means you need lots of drywall. You can imagine that in the next three to five years, USG’s sales are going to boom, and so will its earnings.
The shares of USG are trading near multiyear highs, but soaring revenue thanks to home-shopping millennials will send the security skyrocketing over the next several years.
In fact, USG is such a dominant company that Warren Buffett owns 27% of it, making the shares scarce in the market. As more traders discover the opportunity USG represents, we will see the stock pushed higher as demand outweighs supply.
Action to take: Buy shares of USG Corp. (NYSE: USG).
Momentum Stock No. 2 — Thor Industries (NYSE: THO)
Thor Industries (NYSE: THO) is the premier manufacturer of recreational vehicles in the U.S. RVs are back in fashion now because millennials favor outdoor activities and traveling. Not surprisingly, RV sales are booming.
Thor reported in its last quarterly statement: “With continued dealer optimism and steady economic conditions, we believe 2017 will be one of the strongest years for wholesale shipments for the industry since the 1970s.”
That’s a huge statement for Thor! Effectively, the company is telling you that it is seeing the strongest market for RVs in nearly 50 years. That’s the kind of boom that can ramp a stock like Thor up by hundreds of percent.
One thing that both USG and Thor have in common is that they are both cyclical industries. These are marked by long up cycles and down cycles. Both USG and Thor are coming off long down cycles, putting them both at the start of what will likely be incredibly strong up cycles.
When you have a cyclical company experiencing a major up cycle, you get what is called “maximum operating leverage.”
You see, for both USG and Thor, you’ll find that most of their costs are fixed costs. And that means after a certain number of units, the fixed cost is accounted for, and now each RV or drywall panel made contributes a rising level of profit, which in turn means surging earnings estimates … and a skyrocketing stock.
Action to take: Buy shares of Thor Industries (NYSE: THO).
Momentum Stock No. 3 — Cognex Corp. (Nasdaq: CGNX)
Cognex Corp. (Nasdaq: CGNX) is the premier machine vision company in the U.S. The firm essentially puts eyes on machines so that they can record, monitor, track, examine and inspect things.
For example, you might see Cognex’s vision products in an inspection line for a product.
Now is a great time to own Cognex because every machine in the world is going to become part of the Internet of Things (IoT). And to join the IoT revolution, it means giving machines “eyes” to capture visual data.
Cognex is the company that is perfectly placed to benefit from the vision side of the IoT. In fact, it’s already beginning to see the first signs of the IoT starting to boost sales, which is why the stock has nearly doubled recently.
And this performance is going to continue until Cognex stock is up by hundreds of percent.
Action to take: Buy shares of Cognex Corp. (Nasdaq: CGNX).
Enjoy the Profits, and Be Prepared
These three stocks are on the move.
I will be keeping in touch with you every other week until I officially launch True Momentum in April to keep you up to date on these stocks and to help you prepare for this new service.
I’m glad that you got in now.
Now, let’s go make some money!
Editor, True Momentum