I don’t fish.
The closest I get to fish is at the counter at ShopRite buying filet for dinner.
But a good friend of mine did teach me one thing about fishing. She said the key to catching something every time is to know where to fish.
“Joanie” told me that she fishes in a pond that very few know about.
Her granddaddy started taking her there when she was just old enough to walk.
As she got older, he told her: “You always want to fish where there are only a few lines in the water. That way, there’s no competition.”
Joanie tells me that the fish practically jump into her creel (that’s what anglers call their wicker baskets).
Where I used to work on Wall Street, this is something the analysts would call a “special situation.”
They’d call a pond where few people were fishing a great opportunity. There are very few competitors in special situations because not many investors know where to look.
Main Street investors find special situations too complicated (or difficult to get to), and Wall Street veterans don’t spend time trying to figure them out. But the profits can be huge! The same way Joanie knows where to go to get the fish to essentially jump into her basket.
You see, special situations are the small ponds of the market — opportunities that, for one reason or another, are overlooked by investors both big and small.
These opportunities are the ones that have the potential to hand investors gains of 100%, 500%, 1,000% or more.
They come in several forms, including:
- Complexity: Complicated businesses are often overlooked by Wall Streeters who don’t want to take the time to understand how much the company is really worth.
- Small Caps: Stocks with market caps in the range of $500 million to $2 billion are overlooked by professional money because they’re small fish. They don’t allow these funds to take sizeable positions.
- Hidden Assets: An asset or division of a company can be assigned little to no value, even if it’s potentially worth a lot.
These are just a few examples.
And I have shown my readers exactly how to pinpoint all kinds of special situations in the market.
Finding Special-Situation Stocks
As a former floor trader, money manager and hedge fund manager, I’ve seen dozens of special situations in my 37 years in this business.
For example, I once recommended buying Atrion Corporation (Nasdaq: ATRI) to readers.
This medical device manufacturer was a small-cap stock — tossed in Wall Street’s unloved and unwanted pile and trading at a bargain basement price.
But since my initial recommendation … Atrion Corporation has risen over 693%!
So while Wall Street was missing out on the opportunity, my readers were seeing incredible returns.
You see, me and my team of analysts keep a close eye on opportunities like that as they unfold.
In fact, we added one just a couple months ago that’s already up over 10%! And it’ll only get better.
Special situations are some of the very best spots to make money in the market — the small ponds where fish jump into your basket. That’s why I want to show you how they work.
As we’ve said, at American Investor Today, we’re dedicated to bringing you the very best ways to make money in the markets. Over the next few weeks, we’ll look at other kinds of special situations and show you how you can profit from them.
By the end of this, we want you to know more about how to make money in special situations than some Wall Street analysts.
You do not want to miss out on this, so be sure to stay tuned!
Editor, Alpha Investor Report