I hate to say it, but that bad old Grinch has a decent - or, at least, better-than-average - shot at ruining the holidays this year.
Just about everything you could fit under a tree, stuff into a stocking, or tie up with a pretty bow - from electronics to clothes to shoes to shoelaces (yes, shoelaces) - is hard to come by right now, and there's no sign shortages will ease up as we hurtle toward the shopping season.
The retail landscape is setting up to be grimmer than ever. Shipping and supply bottlenecks in China and California, factory COVID-19 shutdowns in Vietnam, Indonesia, and elsewhere, and transportation snags worldwide have brought the global, just-in-time supply chain to the brink of chaos. Anyone and everyone ensnared in the mess has had their stock dinged, and retail is feeling it more than others.
Investors understandably freak out when stocks decline, but if you keep your cool and take the long view, you quickly come to a point where the price gets too attractive to pass up and buyers come out to drive the stocks to even greater heights.
I've got my eye on a set of stocks I think are coming into the "Buy" zone right now - I'll give you the tickers and some ways you can boost your profits on these, too, collecting 250% or more...
Good Stocks Near Irresistible Prices
Over the past month, Nike Inc. (NYSE: NKE) has dropped 11%... as shipping times between its Asian factories and North American markets have doubled, from 40 to 80 days.
Two weeks ago, Nike reported solid revenue and diluted earnings, which represented year-over-year increases of 16% and 22%, respectively.
Additionally, the company reported Nike Direct sales of $4.7 billion, up 28% on a reported basis, and Nike Brand Digital sales increased 29%.
Any way you cut it, those are very solid results, but the stock has dropped nearly 10% since it reported Q1 results. That's not surprising considering increasing concerns about possible supply chain constraints.
Now, some of my colleagues have recently recommended selling NKE shares, and it's understandable folks might want to stay away, but the way I see it, the pullback has created a window for a longer-term opportunity - one that will pay rewards a little further down the road. And now's the time to act.
See, NKE shares are trading within a dollar of their 200-day moving average (MA200). That's a big deal, because the MA200 is a key support level used by professional (read: deep-pocketed) investors looking for an entry point in the shares. That's our entry point, as well.
To slash risk and boost profit potential, I like the idea of buying a call spread - a NKE Dec. 17, 2021 $150/$155 call spread, for $2 or less. Plan on selling this one when your profits hit 100%.
Bed Bath and Beyond Inc. (NASDAQ: BBBY) was a popular meme stock not long ago, but its stock has dropped more than 36% in a month. Much of that steep collapse came after the company reported Q2 results that included a small miss on revenue, a big miss on the bottom line, and lowered Q3 and FY guidance.
In what's become a very common refrain from companies across the markets, at the core of the disappointing earnings were two familiar boogeymen - lower foot traffic due to COVID-19 and continuing issues with the supply chain.
I get it: That sounds bad. But the average, reactive investor out there is overlooking an important fact: Bed Bath & Beyond is sitting on more than $1 billion in cash, so it won't need to take on more debt or dilute shares to continue operating.
Additionally, the company is going into the holiday season right at a time when many public health experts agree the delta variant coronavirus surge is ebbing. That could end up being great for Q3 numbers.
The cash is good. The end of the delta surge is good. But what really has me interested in BBBY right now is the short interest out there. It's extremely high - a whopping 45.01% (as of Sept. 15, 2021). It won't take much for the meme-stock fans at Reddit to catch on, putting on another world-class short squeeze to drive shares higher.
Possibly much higher, very quickly.
I've been following BBBY for a while, and now it looks more attractive than ever - but only if the stock pulls back a little more to reflect the lowered guidance.
BBBY shares were at $15.90 as of midday Monday. If shares close below $15.35 by Oct. 15, 2021, I like buying the BBBY Nov. 19, 2021 $15/$16 call spread for $0.40 or less. Plan on closing the trade for a 100% profit.
And then there's Helen of Troy Ltd. (NASDAQ: HELE), which is down more than 7% for the past month. Helen of Troy is a big name for Classics majors, but the name might be less familiar to investors. However, you've more than likely seen its kitchen and bathroom gadgets and accessories, health-related items, and beauty products in your favorite mass merchandisers, drugstore chains, warehouse clubs, home improvement stores, grocery and specialty stores, beauty supply, and e-commerce retailers.
The company is scheduled to report Q2 results on Thursday, which is why we're looking at the stock today.
Analysts are expecting the company to post quarterly earnings of $2.13 per share, which would represent a year-over-year decline of 43.5%.
I don't know if the company will beat or miss expectations on Thursday, and frankly, I don't care. What I do care about is using history as a gauge in order to make a quick profit.
In each of the last four quarters, shares have briefly pulled back, sharply, when the company reports quarterly results - even though the company has beat earnings for three of the last four quarters.
Considering the history of selling off after reporting, I like buying a HELE Oct. 15, 2021 $220/$210 put spread for $5 or less. Now, these options will expire Friday, Oct. 15, 2021. So make a plan to exit this position for a 50% profit or by Oct. 8, whichever comes first.
There are a lot more stocks in the Money Map Report model portfolio right now - EV companies, clean energy, you name it. I think these stocks could be a great place to get started as you learn how to build the most lucrative stock portfolio. My team of market veterans and I are making at least two brand-new stock and options picks and other "under the table" recommendations each month. You can take a look, learn what other folks are saying, and learn more right here...
Follow Money Morning on Facebook and Twitter.
About the Author
Shah Gilani boasts a financial pedigree unlike any other. He ran his first hedge fund in 1982 from his seat on the floor of the Chicago Board of Options Exchange. When options on the Standard & Poor's 100 began trading on March 11, 1983, Shah worked in "the pit" as a market maker.
The work he did laid the foundation for what would later become the VIX - to this day one of the most widely used indicators worldwide. After leaving Chicago to run the futures and options division of the British banking giant Lloyd's TSB, Shah moved up to Roosevelt & Cross Inc., an old-line New York boutique firm. There he originated and ran a packaged fixed-income trading desk, and established that company's "listed" and OTC trading desks.
Shah founded a second hedge fund in 1999, which he ran until 2003.
Shah's vast network of contacts includes the biggest players on Wall Street and in international finance. These contacts give him the real story - when others only get what the investment banks want them to see.
Today, as editor of Hyperdrive Portfolio, Shah presents his legion of subscribers with massive profit opportunities that result from paradigm shifts in the way we work, play, and live.
Shah is a frequent guest on CNBC, Forbes, and MarketWatch, and you can catch him every week on Fox Business's Varney & Co.