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When you're looking for a stock to buy, one that's a real, solid investment, it's generally in your best interest to seek out only the best. You want companies with large and continually growing revenue, net profits, cash from operations, and widening profit margins.
Those strong fundamentals help ensure the stock will stay on an upward climb year over year and withstand periods of market instability better than others do. Sure, they'll take a dip on occasion - as I've said before, the stock market is designed to do that - but overall, the stronger the company's financials, the more reliable their profit potential is over time.
But you know what they say: The exception proves the rule.
So, today's play is a trade on a social media company whose recent earnings report was abysmal - no profits to speak of, shareholders losing money, revenue well short of projections... just the worst.
But I'm interested in it despite the awful numbers. What got my attention is that it's funding a $4 billion buyback program, which is likely to kick its shares back into high gear.
That creates a great opportunity for investors to get in while the stock is down and ride the upcoming bump.
To get the ticker and two bonus trades, just watch this video...
In case you still need those plays, here are the ones I've talked about today:
- Buy Walt Disney Co. (NYSE: DIS).
- Buy Twitter Inc. (NYSE: TWTR) and place a 10% to 15% trailing stop.
- Sell Uber Technologies Inc. (NYSE: UBER).
Some people might consider these plays to be a bit unorthodox, but that's the moment we're in right now - these chaotic times require a bit of out-of-the-box thinking. And some of the changes we're seeing are going to be with us for a long time.
The challenges of the future are going to need new solutions and innovations, and that opens up a whole new world for investors to get in on the ground floor of tomorrow's big companies.
I'm talking about startups. Remember: Big names like Amazon, Apple, and Facebook all started as entrepreneurial ventures. And all of them have become so huge that there's literally a category of stocks (the FAANGs) named for them. They didn't do that on their own. Angel investors played a huge part in helping those companies achieve enormous success.
I know an angel investor on a bold mission to find the Apples and Amazons of tomorrow, and guide investors like you to the best potential opportunities to build lasting, generational wealth.
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.