Note from Senior Managing Editor Christina Grieves: I’m a big believer in signs. I think the universe tells us things in subtle ways… which means we have to keep our eyes open in order to see them. In today’s article, Research Director Kristin Orman explains how powerful signs can be, in both life and investing.
Our Oxford Club strategists track different signs every day to determine which stocks are most likely to move up… and which have hit their expiration dates. In fact, Kristin recently teamed up with Quantitative Strategist Nicholas Vardy to take a deeper look and find out which signs our biggest winners have in common.
What they learned will surprise you. So give Kristin’s article a read below, then click here to learn more about their research and how you can take advantage of these signs.
Signs. They’re everywhere…
Some are obvious, like “Stop,” “Yield” or “Wrong Way.” Other signs are harder to see.
And if you don’t know where to look for them, you could miss out, both personally and financially.
Let me explain…
Three years ago, I was thrilled to discover that I was going to have a baby. Unfortunately, early on in my pregnancy, I had a very big scare.
I was an emotional wreck as I drove to my doctor’s office to find out if there was still a baby or not. On my way, something strange – even for Florida – happened. I saw a peacock walking down the side of the road.
I didn’t think much about it at the time and continued on to my doctor’s office, where I learned that my daughter was just fine. Today she’s a very happy and healthy 2-year-old.
Kristin’s daughter, Izzy, dressed in a peacock costume.
My peacock sign stuck with me. After she was born, I shared the story with a friend.
She told me something that surprised me. Peacock feathers are a sign of fertility. In China, some believe that a woman will be blessed with a child if a peacock glances at her.
I’d missed the sign on that fateful day. And while seeing it wouldn’t have made much of a difference in my pregnancy, it would’ve helped calm me down and benefited both me and my daughter.
That’s the thing about signs… If you don’t notice them, you don’t know what you’re missing.
This happens when we’re investing, too. There are dozens of signs that can help us figure out when to buy or sell a stock. Missing them can cost us.
Luckily, The Oxford Club knows just what they are and exactly where to find them.
Sign No. 1: Insider buying.
Alexander Green is always on the lookout for several signs in particular that can help investors cash in.
When a company’s directors, officers or beneficial owners purchase shares in their own company, it’s one of the most powerful signals that a stock’s price is going to rise. Company insiders know more about their businesses than anybody else.
Insiders sell stock for a plethora of reasons: to pay taxes, fund big expenses or diversify their investment portfolios. But they buy for only one reason: They think the price is going up.
In his Insider Alert trading research service, Alex tracks insider purchases of thousands of stocks and recommends to his subscribers the ones with the potential for the most explosive gains.
Most investors don’t have the time – or even know where – to find insider buying information. It’s reported by the buyer to the public on a Form 4 filing with the Securities and Exchange Commission (SEC).
Going through hundreds or thousands of SEC filings is far too tedious and time-consuming for most investors. That’s why so many miss out on one of the market’s most profitable signals.
Sign No. 2: Free cash flow.
Marc Lichtenfeld, The Oxford Club’s Chief Income Strategist, uses a variety of signs to steer his subscribers toward financial freedom.
Free cash flow is one of them. Rather than focusing on earnings, Marc believes that cash flow can tell a truer story about a company’s financial health. Unlike earnings, cash flow excludes all noncash items and adjusts for accounts receivable.
Cash flow gives you a better idea of whether or not a company can pay its bills. It also tells income-hungry investors how much cash is available to pay out dividends to shareholders.
Growing free cash flow is a sign that investors can expect bigger payouts in the future.
Sign No. 3: Price ratios and revenue growth.
The Oxford Club’s Chief Trends Strategist Matthew Carr counts on signs to help him pick triple-digit winners for his subscribers as well. His favorite investment recommendations are companies experiencing high growth and trading at a discount to their peers.
To find these companies, Matthew looks for a low price-to-sales ratio and forward price-to-earnings ratio, combined with revenue growth.
All our Oxford Club strategists have recommended numerous home run investments to their subscribers based on different signs.
That’s why, earlier this year, Nicholas Vardy and I decided to study the Club’s best-performing recommendations. We wanted to find out what signs our biggest winners of all time had in common.
What we discovered through months of research became the foundation for our new Oxford X portfolio.
Oxford X is a proprietary, curated portfolio of The Oxford Club’s top 10 recommendations that show the same signs as our top performers. They’re the trades with the biggest potential to join the ranks of our best-performing picks.
This new portfolio is a benefit exclusive to The Chairman’s Circle, our most elite level of membership. Chairman’s Circle Members have an all-access pass to every stock, bond and option recommendation our strategists offer.
To learn more about the Oxford X portfolio and our Chairman’s Circle Membership, click here to watch a special video presentation from CEO and Executive Publisher Julia Guth.
Chairman’s Circle Members receive all our best wealth-building advice and investment strategies. But the sheer amount of information can be overwhelming. That’s why we created Oxford X – to help our Members focus their time and money on the recommendations with the most profit potential.
As Swedish pop group Ace of Base sang on its 1993 No. 1 hit “The Sign”…
I saw the sign and it opened up my eyes,
I saw the sign…
Always keep your eyes peeled for signs. It’s good advice in life as well as in investing.