Investor Insights:
- At the end of last year, I gave you seven free trades.
- Two have already gained 24% or better.
- Today, I want to show you another name that should run higher soon.
In the last two months of 2019, I recommended seven free trades in Smart Profits Daily.
The average gain from these though January 14 was 7.9%.
The S&P 500 Index did well over this stretch too. But it only returned 5%, including dividends. We beat it by nearly 3%.
Two of my recommendations gained 24% or better.
- Gold and silver producer Pan American Silver Corp. (Nasdaq: PAAS) was up 34% since our article on November 7.
- We told you that investors had sold off gold and silver stocks. But we predicted they would rise again in the fourth quarter.
- Tech giant Alibaba Group Holding Ltd. (NYSE: BABA) gained more than 24%.
- We titled this November 21 essay: “You Wouldn’t Dare Invest Here, Would You?” (Alibaba is a Chinese stock.)
These are amazing returns in only two months. So congrats to those who followed along.
Remember, the best part is … these recommendations are free.
Now I have another free trade for you, and it’s in a previously hated sector.
So, What’s Next? This Hated Sector Will Shine in 2020
We strive to provide you with good ideas in Smart Profits Daily.
Last year, you had the opportunity to profit 46 times from my articles alone … and that doesn’t include all of the recommendations Jeff, Ian and Mike sent you last year.
We want to help you understand what’s happening in the investing world. And we search for names that will allow you to take advantage of it.
For example, energy was the most-hated sector of the S&P 500 for most of last year. It fell almost 20% from its peak in April while the rest of the market was making gains. Since then, it has retraced some of those losses.
I think energy stocks still have room to run. And I’m not the only one.
Industry analysts and executives alike believe 2020 will be a solid year for energy companies.
Don’t get me wrong: I understand fossil fuels have competition. Solar and wind energy are here to stay.
But we still need sources of energy such as natural gas as well.
One way to play this is via the Adams Natural Resources Fund Inc. (NYSE: PEO).
Free Cash Flow in Spades
PEO has been around since 1929. Today, its largest holdings are Exxon Mobil and Chevron (34% of its assets).
The rest of its holdings include other energy producers, oil service firms, refiners and pipelines.
Shale producer Parsley Energy Inc. (NYSE: PE) is one of PEO’s holdings. Its CEO says he thinks his company is a takeover candidate.
He also says shale producers will earn solid cash flows this year.
“I think 2019 was the inflection year: We saw these glimmers of hope that the shale leaders can print free cash flow. And 2020 is going to see free cash flow in spades.”
Cash will help PEO uphold its mantra. The fund’s stated goal is to pay out at least 6% of its average market price each year.
As energy companies generate more cash, their share prices should rise as well. That means PEO could gain 25% in the next 12 months.
Last year, this $16 fund paid out $1.10 in dividends. So, you’ll constantly be receiving income, too.
Our 2020 Goal: Putting You Ahead of Wall Street
There are a lot of good things like this occurring in the market.
We’ll continue to help you find them here in Smart Profits Daily. All you have to do is keep reading!
And, please, let us know if you have comments about what we’re doing right … and wrong. You can send us an email at smartprofits@banyanhill.com.
Good investing,
Editor, Profit Line
P.S. If the Smart Profits Daily team is giving readers these kinds of returns for free, can you imagine the value we offer in our paid products? Click here to learn about another energy name that I really like right now. Its yield is about twice that of PEO.
