THE MOST EXPLOSIVE SHARES YOU CAN OWN
There’s nothing more exciting than investing in a tiny stock.
You get to control thousands of shares for a small investment. They’re ultra-responsive to even the slightest good news, fast-moving, and offer pure plays into the most cutting-edge trends.
But that same allure has dangers.
They’re also among the riskiest investments out there.
And there’s never been a way to consistently pick winners. The ones that will explode upward and keep going.
There are hundreds – maybe even thousands – of events that may or may not affect stock prices at one time or another. Sometimes they do, sometimes they don’t.
That’s been the problem for investors.
That inconsistency is what has made the small-cap niche so dangerous.
And that’s why Sid Riggs has gotten so much attention.
THE THEORY OF INEVITABLE PROFITS
As Director of Research at a leading financial publisher, Sid spent thousands of hours over four years charting, data-crunching, and analyzing investments. He was intrigued by how stock prices react to positive “catalysts.”
In some cases, the stock would triple overnight. In others, the stock wouldn’t budge.
Sometimes a stock would respond immediately. And dramatically. Sometimes it happened 90 days later.
In the chaos, he began to see a pattern crystallize.
He developed a theory that only a handful of positive catalysts consistently predict quick, large gains. He chose small-cap stocks as his laboratory, because they respond in especially dramatic ways.
With painstaking analysis, he determined that out of thousands of possibilities, there are only seven overarching catalysts that matter to small-cap stock prices.
That’s his Law of Inevitable Profits.
Just seven “sparks” signal a potential “rocket ride” almost every single time.
And being able to focus (and act) on just these seven catalysts has broken the small-cap sector wide open for individual investors.
In 2013, he opened his research and recommendations to the public.
Here’s what happened next.
FROM $9 to $18 - OVERNIGHT
One of his first targets was Neurocrine Biosciences Inc. (NasdaqGS:NBIX), which was coming up on a new round of clinical trials for its leading drug candidate for a crippling neurological disorder.
The stock was a $9/share.
At the time, he said, “I say we light the fire today using upcoming clinical trials results as the event that could ignite several ‘sparks’ for this stock – including Institutional Interest and Returns Momentum.”
Now, based on Sid’s research, the average time frame for a potential spark event to occur from the time we identify a potential catalyst is between 30 and 90 days.
But sometimes it happens faster. A lot faster.
Just 12 trading sessions after Sid recommended NBIX as a buy at $9/share, it opened the next morning at $18/share.
Members collected 100% gains on NBIX – overnight.
His inbox was flooded.
GOOD MORNING Sid! I am completely ecstatic! I really debated subscribing to the newsletter, and was even more nervous about becoming a Passport Select Member! Well my worries are GONE! I just sold half my position for a 91.65% GAIN in 8 days! I’m still sitting on my other half FREE trade. WOW. Can’t wait to see how your other recommendations pan out. ~ Amy S.
Today I’m up over $15,000 overall on your NBIX pick, a stock I would never have heard of if I’d not been a subscriber to Small-Cap Rocket Alert. AMAZING! ~ Brian C.
I’ve been in this business for over 50 years and this is my biggest hit ever in three weeks. Me and my children thank you too! They each have $2000 in their retirement accounts – Should I buy the Range Rover now? ~ Tom D.
And it was just the first of a string of winners.
Just two weeks later, in January 2014, his second double hit, and it was a big one. It was Novavax Inc. (NasdaqGS:NVAX), a biotech stock that he had recommended two months earlier on the strength of five potential “sparks.”
NBIX and NVAX were the first of six triple-digit gains (and many double-digit winners) in the first year.
Suddenly people were paying attention.
THE SEVEN SPARKS THAT BROKE THE SMALL-CAP SECTOR WIDE OPEN FOR INVESTORS
With Sid’s permission, we’re sharing the results of his groundbreaking research. Here are the only seven sparks that consistently identify – predict – substantial gains.
Spark #1: Game-Changing New Contracts
A little company that secures a large, new contract with a key customer can see its stock really take off. The contract can come by way of a larger private-sector customer or a public sector contract with a government entity… at the end of the day, it doesn’t matter where the contract comes from. What does matter is the scale of the contract relative to the company’s existing sales.
Spark #2: Management Upgrade
Public companies must report changes in management – and that information is hugely valuable for investors. Sid makes it a point to see who has the chops to lead and succeed by digging up their resumes and studying how they fared in previous positions of power. He’s looking for stocks that may jump on the news of a management change – and if the management change can lead to a successful turnaround, that’s even better.
Spark #3: Disruptive Technology
Sid is always on the hunt for the latest viable technological, medical, or special niche product that has the ability to either change the world or support a macro trend that is changing the world.
Spark #4: Upward Revenue and Earnings Revisions
Revenue and earnings sparks are about more than just beating analyst expectations. Sid’s analysis has determined that upwardly-revised guidance has a much bigger impact on a stock’s move. These upward revisions can come from Wall Street analysts, which is good. But upward revisions that come directly from the company itself can really light the fire under a company’s stock too.
Spark #5: Institutional Interest
You know a company has started to hit its stride when institutional investors start gobbling up outstanding shares. Mutual funds, hedge funds, exchange-traded funds, and pension funds… these are the guys that make the market – by deciding where the next hot sector will be. And once they “tip their hand,” it’s usually just a matter of time before the media breaks the news and regular investors pour in. Sid gets there first. He identifies the tell-tale signs of initial institutional interest through published data, well before others spot it.
Spark #6: Sector Rotation
Money is always in flux. It flows from one sector or asset class to the next. Sometimes these moves are quick and violent. Sometimes they can last for years. Sid’s suggestions may become more concentrated in one particular sector (like biotech and energy), but that just means Sid’s analytics have identified an existing opportunity or even an upcoming opportunity that is currently off the radar.
Spark #7: Returns
Until a stock starts to perform, it’s merely tying up capital in your account. That’s why Sid always looks for stocks that have already demonstrated favorable momentum. That momentum could be over a long period of time, where a stock continues to hit new highs – or it could be over a short time frame, when a stock demonstrates a breakout from a base. In both cases, we’ll be looking for increasing volume on the move. That lets us know we’re not alone – and it also gives us hints as to possible institutional interest. And as I said above, the party really gets started once institutions start piling in.
In some cases Sid finds stocks that have one spark, and that’s fine. But he’s always on the hunt for stocks that demonstrate multiple sparks. He calls this a “multi-catalyst event” setup. And in the past, an event like this has led to fast gains of 1,000%, 2,000%, even 3,900% or more. That’s the ultimate goal. Sid put it this way:
“When we can line up multiple sparks at the same time, we greatly increase the probability of hitting a home run… and I plan on hitting quite a few.”
THE SMALL-CAP ROCKET PORTFOLIO
Every week, Sid shows his members the latest “sparks” he’s turned up that are about to ignite profits in micro- and small-cap stocks. And he shows them exactly how to play it.
Sid doesn’t have any allegiance to any particular sector. He doesn’t dig his heels in on any specific sector or asset class. Instead, he’ll be targeting sectors with the best opportunity for future growth in the short-term and over the long-term.
Right now the best ones are in technology, biotech, pharmaceuticals, semiconductors, energy exploration, gaming, communications, the cloud…
The only qualification is that the stock is a $2 billion market cap or less.
That’s where “sparks” have the greatest effect.
To see why, think of Spark #1: Game-Changing New Contracts.
Giant defense contractors such as Lockheed Martin and Raytheon frequently announce new government contracts worth hundreds of millions of dollars too. That’s great. But it isn’t going to really move their stock price. That’s because it may take years to realize the total value of the contract, and even then, relative to the company’s existing sales – already in the billions – the new contracts aren’t game-changers.
On the other hand, small caps can see their top-lines explode when they secure a key contract.
Plus there’s always buyout potential…
Indeed, all of the companies Small-Cap Rocket Alert targets represent potential buyout candidates. It’s actually an important underlying factor Sid takes into consideration when recommending a position.
And it’s already paying off.
In early September, Sid’s recommendation Bolt Technology Corp. (NYSE:BOLT) rocketed up over 35% at the market open on news that the tiny energy player was merging with Teledyne Technologies Inc. Shareholders got a substantial premium.
And with the amount of “cheap money” bloating corporate balance sheets right now, Sid expects more of that ahead.
In certain situations, he does recommend bonus options trades for investors. Simple puts and calls. These are for investors who want to turbocharge their gains or minimize their downside.
But there’s always a stock-only play. Buy, wait for catalyst, take profits.
Of course, knowing when to take profits is half the battle… and it’s especially tough to get right in this ultra-volatile niche.
So Sid always sets his sell plan before the buy and engages exit strategies to get out with profits and cut losses.
He walks you through it every step of the way.