Inevitably, if a company or business is around for long enough, it's going to go through a rough period - a bad quarter or a bad year, negative earnings growth or profit loss, etc. - which inevitably will affect the price of the stock. Sometimes that rough patch becomes a trend, and signals a permanent shift in the company's fortunes, after which investors will dump that stock and run for the proverbial hills.
But when a great company with a solid business model hits a bump in the road, and the stock takes a dive, it's a perfect opportunity for investors to get in and enjoy a nice ride as it rebounds.
It just so happens that one of my favorite companies to own has gotten hammered on the tail end of a dismal earnings report, reporting a $58 million loss for the quarter compared to a $1.17 billion gain the year before. Moreover, they announced that they're not going to be paying out a dividend next quarter. Naturally, investors weren't thrilled.
But I think that's extremely short-sighted, because this company is one of my favorites for a reason. They're one of the top 20 global carriers for international freight, and they aren't going anywhere anytime soon. The setbacks they're going through are temporary, with this recent loss partly attributed to the capital investments they've made to expand their shipping fleet.
So not only do I fully expect that the stock will rebound, but I'm also expecting that they'll start paying dividends again very soon. And when that starts up again, you'll be glad you bought in now - the trailing 12-month yield was 115%, which they paid out without borrowing any cash. To put it simply, that means that if you bought the stock a year ago, you made your money back and then some on just the dividend alone.
Frankly, that's astonishing, and that's why I'm recommending you take advantage of the opportunity to buy this company at such a huge discount today.
Check out this video for the ticker:
Toward the end of this video, I talk about one of the biggest investments I've made recently, in a firm with technology so groundbreaking, one of the largest tech companies in the world and their top engineers are actively trying to get their hands on it.
These high-level talks shouldn't be taken lightly, because even a single contract with one of these mega-cap giants could send this company's $100 million valuation soaring, turning it into a billion-dollar unicorn overnight.
But right now, and for a limited time, investors like you have the opportunity to join me before Wall Street gets involved. I've attached the full exposé here.
The post Buy This Stock at a Huge Discount Before It Rebounds appeared first on Total 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.