How I Put This Stock-Picking "Secret" to Work and Made 237% for My Readers

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I'm no broker or professional trader.

But I do use a pro "secret" to pick stock-market winners.

Real winners.

I don't mean a 10% gain on a big global conglomerate with a 3% dividend kicker. Or a "big" profit on a 29-cent penny stock that collapses a week later. Or a "system" that turns out to be unworkable … or even an outright scam.

I'm talking about an honest-to-goodness 237% gain we just scored on a real stock in a real company. In less than a year, too.

The "secret" we used to find that winner gets put to use here at Money Morning Private Briefing – over and over again. It's dependable. It's powerful. But very few individual investors use this secret to their advantage. Few even know it exists.

Today I want you to show you that secret, tell you how it works, and help you start profiting from it right away.

The Secret to Picking Real Stock-Market Winners

At Private Briefing, we look for stocks with multiple potential "catalysts."

So we're not just counting on one potential development to touch off a rally. We've got two or three or even four factors in the works that could ignite a boom in the stock price.

Here's an example of how it works – and a 90-second interview about our latest success.

Editor's Note: Bill Patalon put this same "stock-picking secret" to work last April, in his "Biotech Buyout Binge" report. In a word, it worked. All three oncology stocks he recommended have turned into winners in the past 11 months – with peak gains of 40%, 117%, and 237%. And, as Bill explains, there's still more upside ahead. "The Biotech Buyout Binge" is only available to subscribers of Bill's daily Private Briefing. Click here to find out how to sign up now absolutely free.

In the video clip above, you'll see me reference a "205% gain." I know – that doesn't match what I just told you about the stock gaining 237%. That's because the stock's up another 22% just since we shot the video.

Here's how this played out…

Last April 2, I identified three oncology (cancer-fighting) stocks I said were poised for hefty gains. It's all in a special research report called "The Biotech Buyout Binge," written for my premium Money Morning service, Private Briefing. All three became winners, posting peak gains of 40%, 117%, and 237%.

Our big 237% winner is especially intriguing.

It's a clinical-stage biopharmaceutical firm whose lead drug is a truly novel approach to fighting blood cancer. This is perhaps the best kind of investment – it's going to save lives and make investors rich. But that's not why I chose it.

This biotech firm was so attractive because, at the time, it was propelled by a "triple whammy" of potential catalysts that can make the stock pop:

  • First are the drugs themselves that are being developed within this firm's labs. There's always potential for an upside move in the stock because of good results or a favorable report or study.
  • Second is the big surge of insider buying I identified at the time of the recommendation. Who's in a better position than the company's own leadership to know when the venture's fortunes or outlook are about to change for the better?
  • Third is the seriouspotential for a takeover bid – or "buyout" – that would be a great boon for shareholders.

The lesson I want you to take away is this. Most retail investors tend to find stocks with only one potential catalyst … we try to find those with two, three, or more sources of rocket fuel. That greatly increases the odds for a massive gain.

Think of it as a kind of "insurance."

If the buyout never materializes, that's fine with us. We've got an ace (or two) in our back pocket.

And if two catalysts hit at the same time… watch out.

There's More to Come

Now, the success of this recommendation was stunning – even to me. But it was no fluke. Back in December 2011, Private Briefing issued a special report called "The Five Stocks You Have to Own in 2012."

The result: Two of the five recommendations doubled – posting peak gains of 153% and 142%.

In the last 18 months, we've identified 66 winners. Two of them tripled, three have doubled, and five ended up as takeover plays.

And now the very same secret that we put to use in those two earlier reports was used to create our newest bit of research – a just-released report called "The Seven Investments You Have to Make in 2013."

Whether you're most interested in technology, biotech, energy or gold/silver, there's something in there for you. Or if you're worried the market could fall, we've also identified the best hedge I've seen in years.

That's why, today, I'm giving new subscribers to Private Briefing a free two-week trial.

Click here for all the details.

The Good News Keeps Coming

The biotech firm that's the subject of the video is on a roll. It received a special "breakthrough" designation from the FDA last month, which will speed things along. In fact, the drug application is now expected to be in to the Feds by the end of the year – much earlier than expected.

The revenue potential for this medical product is stunning. Drugs that address these same maladies generated roughly $6 billion in sales last year. No wonder the firm just scored a partnership with a unit of Johnson & Johnson Inc. (NYSE: JNJ).

And here's perhaps the sweetest part of the story for my Private Briefing subscribers …

It's only now, after those huge surges, that Wall Street and other institutions are starting to fall in love with these stocks. But that's more than fine with us.

And though we don't follow Wall Street's lead, we do continue to watch each new development there.

That's because we understand very well the power of Wall Street's "PR" machine, and the liquidity the investment banks can funnel into the stocks that they've decided to push. So we're never unhappy to see these institutional players boost their ratings or "target prices" on shares that we've already uncovered as a result of our independent analysis – and recommended to you.

In short, as long as you're in the stock first, then we're happy.

By the way, I don't think it's too late to get in on this incredible story. Analysts are saying it has a potential market cap much higher than where it is now – representing another 43% to 79% gain from where it's trading today. That's a total gain of about 400% from where we recommended it.

If you want to get in, you can find the name of the company in my report, "The Biotech Buyout Binge." To get immediate access, just sign up for your free trial to Private Briefing.

Join the conversation. Click here to jump to comments…

About the Author

Before he moved into the investment-research business in 2005, William (Bill) Patalon III spent 22 years as an award-winning financial reporter, columnist, and editor. Today he is the Executive Editor and Senior Research Analyst for Money Morning. With his latest project, Private Briefing, Bill takes you "behind the scenes" of his established investment news website for a closer look at the action. Members get all the expert analysis and exclusive scoops he can't publish… and some of the most valuable picks that turn up in Bill's closed-door sessions with editors and experts.

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