When it comes to our Extreme Fortunes portfolio, we’re looking for companies that are small, but mighty…

The most difficult part about bear markets is getting in and holding on.

In a bull market, you could get the timing of a stock wrong and be fine a month later.

However, that same mistake in a bear market could cost you another 20% to 30% in that same time frame.

So when it comes to our Extreme Fortunes portfolio, we’re looking for companies that are small, but mighty.

Stocks in the $100 million to $3 billion market-cap range with explosive earnings potential.

These stocks tend to be the best performers coming out of a bear market.

According to the National Bureau of Economic Research: “Small caps have significantly outperformed large-company stocks in the first year following a recession.”

Anchor Capital Advisors says these small caps beat larger stocks coming out of the last 9 out of 10 recessions.

And the secret to their success … is growth.

More specifically, revenue growth.

Other popular metrics (like earnings) can be manipulated. They don’t paint a clear enough picture.

But when a small-cap stock grows its revenue by 10% to 20% per year, it’s on track to double incoming cash in just five years.

That’s the perfect recipe for soaring stock prices.

There are a few other key phases to my selection process.

Here are the four steps I use to evaluate potential investments:

  • Phase 1: Small-cap selection. Like I mentioned, we’re after growth here. So we’re only working with stocks that have a market cap between $100 million and $3 billion.
  • Phase 2: Disruption analysis. This crucial phase establishes whether a stock is “disrupting” an existing market. Just like Netflix disrupted the video rental industry, Apple disrupted cellphones and Amazon disrupted retail shopping. This is the pathway to the biggest possible gains for small-cap stocks.
  • Phase 3: Crunching the numbers. This is where my research team does all the homework and heavy lifting for you. We’ll analyze factors like revenue growth, return on equity and other stats to ensure we’re looking at a stock with real runaway earning potential.
  • Phase 4: “S-3” indicator check. This is my team’s “secret weapon.” Since we have access to the same database as Wall Street’s top investors, we can actually look over their paperwork (specifically S-3 forms) to know when one of our target stocks has received a secret cash infusion from major players.

These are the same basic steps I used to guide my readers toward Tesla’s stock — when it was selling for just $47 per share!

By the time I told my readers to sell, shares were up 735%.

I hope each of your recommendations performs at least that well.

But it’s also important to be realistic. Especially during bear markets, and especially when you’re working with volatile small-cap stocks.

With Extreme Fortunes, you’ll get:

Access to my model portfolio: This portfolio includes every stock that’s on my “buy now” list. I will typically recommend 12 new stocks every year. The portfolio will tell you what to buy, at what price to buy it and when to sell. If I see a good opportunity to make money … you will be the first to know.

Weekly webinars: You’ll also receive my weekly webinar. With these updates, you’ll never be left in the dark. I’ll reach out to you every Friday to fill you in on any updates on our current portfolio. I’ll also share my views on any events in the market I think you should be aware of.

Trade alerts: Anytime we need to sell an open position, I will send you an alert via email. I’ll provide explicit instructions on what to buy or sell and for how much. And with today’s technology, it’s easy to make my trades over your phone, computer or tablet. It’s that simple.

Daily briefings: By joining, you also get a free subscription to our daily e-letter — Market Insights — where you will receive unique, profitable insights not just from me, but my whole team. We’ll advise you day in and day out.

A dedicated customer service team: Finally, if you ever have questions about your membership, simply give our customer service team a call at 866-584-4096, Monday through Friday between 8 a.m. and 8 p.m. Eastern time.

You can also reach out online through our Contact Us form. And if you have any feedback you’d like to share, drop us a note at ExtremeFortunes@BanyanHill.com.

Regards,

Ian King

Editor, Extreme Fortunes