My Rapid Wealth Alliance and Small Cap Fortunes programs are all about picking great companies to invest in. They’re portfolio-building programs.
These are companies we intend to hold for a period of time that could be easily several years.
Don’t get me wrong, if they are acquired and doubled overnight, we’ll be taking our money off the table.
However, for the majority of our picks in both services, we’ll be holding them for some time.
The question is… What qualifies these companies to be considered for our portfolios?
For me, someone who’s been a main street business owner, buyer and seller throughout the years, it comes down to CASH FLOW and the balance sheet.
Strict Entry Criteria
I want to see companies making money and, more importantly, I want to see companies with little to no debt.
But that’s not enough to qualify an entry in my opinion. I want to buy these companies when they’re “on sale,” when their stock value has been beaten up.
I prefer them to be testing technical support or breaking technical resistance.
What do the above images tell us about this company?
Well, what I see is rising revenue, rising net income, rising free cash flow and cash well outweighing debt on the balance sheet.
The Piotroski F-Score reads a solid 9, achieving its highest rating. The Altman Z-Score reads 9.16, giving this an ultra “safe” rating.
And the Beneish M-Score for the company shows it as a Non-Manipulator at a -2.23 reading. All positive assessments for this company!
Taking a look at the chart, we are approaching support in the $88 price area, currently trading at about $96 at the time of this report.
There’s likely a little bit of downside flexibility to have a slightly more appealing entry price for those willing to be patient.
I issued this trade idea on Monday, Feb. 14. Price had pulled back to $88.37 prior to bouncing and offering us the move it has this past week or so.
Even with all the market volatility, we nailed the support by identifying a great company at a key level of support.
Those who took this trade are sitting somewhere between 10%-20% profit depending on if they purchased it at the time of the report or if they waited for the pullback that I had suggested would occur and in fact it did.
If you’d like to learn more about these portfolio building techniques, please feel free to give our sales team a call at 407-606-5674 for more information.
I look forward to working with you along your trading and investing journey!
Rules to Live By
“When you want something, all the universe conspires in helping you achieve it.”
― Paulo Coelho
Until next time, I wish you a beautiful and blessed day!
Yours In Trading Success,
Anthony Speciale Jr.