Alexander Green is an analyst, author and speaker whose primary mission is to show investors how to achieve and maintain financial independence. For 16 years, he worked as an investment advisor, research analyst and portfolio manager on Wall Street. He has been the Chief Investment Strategist of The Oxford Club since 2001. He has written several New York Times bestsellers, including The Gone Fishin’ Portfolio, Beyond Wealth, The Secret of Shelter Island and An Embarrassment of Riches.
In addition to directing The Oxford Communiqué (as well as The Oxford Communiqué Pro), he oversees three fast-paced VIP Trading Research Services: Oxford Microcap Trader, The Momentum Alert and The Insider Alert. He also writes for Liberty Through Wealth, a free e-letter focused on financial freedom that has more than 200,000 subscribers.
The financial media tends to ignore this fact: Some of the world’s richest people became rich from a single stock investment.
The talking heads instead drive investors to think the only way to riches is to buy index funds and then pray your savings and rate of return can get you to retirement.
But look at the world’s richest people. None of them made a fortune by diversifying into hundreds of stocks.
No, for the most part, each became rich by concentrating their money in one stock they understood best.
Jeff Bezos got rich not by holding hundreds of stocks in a diversified account but by concentrating his capital in the one stock he knew would succeed – Amazon.
Bill Gates did the same with Microsoft. Sam Walton did it with Walmart. Steve Jobs did it with Apple. And Larry Page did the same with Google, now Alphabet.
I know you might be thinking, “These are the founders of those companies.” That’s true.
But shareholders made a fortune right alongside them. And that possibility is available to you too… All you have to do is find the right stocks and act.
In this report, we outline five stocks that have the potential to hand you a retirement fortune. It’s possible that one of these little-known stocks could be the next Apple, Amazon or Alphabet.
But first, we’ll outline the key elements required in retirement-changing stocks.
Key Elements of Retirement-Changing Stocks
If you jumped into a time machine and headed to the past, you would notice that today’s Wall Street darlings shared specific traits.
And finding those traits among today’s lesser-known stocks is how you unlock a potential fortune.
Key elements they shared include…
- Having cutting-edge technologies or services that disrupted their industries
- Sporting massive sales growth that’s projected to increase dramatically
- Either just becoming profitable or being expected to become profitable in the next 12 months
- Not being well known or receiving substantial coverage from the financial media
- Trading for a few dollars a share.
The last element is key. If you are going to take a small investment and turn it into a dream retirement portfolio, you have to get in early.
To do this, you must target microcap stocks. The lower prices of these stocks allow you to maximize your per-share investment.
For example, Cray Inc. was a low-priced stock back in November 2008. It traded for $1.37 a share and also embodied the other four elements of a retirement-changing stock.
The company was on the cutting edge of data management and supercomputing, experienced triple-digit sales growth, had turned a profit for the first time in five years and wasn’t getting any love from the mainstream financial press.
Had you picked up shares back in late 2008, your small investment would have grown 2,995.62% by 2016.
And some retirement-changing stocks can see the same massive price movements in shorter periods of time.
Take AXT Inc. (Nasdaq: AXTI), for example. The pioneering semiconductor company possessed the same key traits as Cray back in 2008. And remember, this was when the financial markets were melting down.
Had you picked up AXT then for just $0.95 a share, two years later your shares would have been worth $10.44 apiece. That’s a gain, something large cap stocks can’t hand you in such a short time frame.
Real retirement-changing 10-baggers (companies poised for 10X returns) like Cray and AXT are out there. But you have to sift through the universe of today’s stocks to spot the potential winners with the five key traits.
And in this report, we’ve done the research for you. We’ve uncovered five stocks that could forever transform your retirement portfolio.
No. 1 Retirement-Changing Stock: ADMA Biologics (Nasdaq: ADMA)
ADMA Biologics is a biopharmaceutical company specializing in treatments for immune deficiencies and infectious diseases. It has three headline products on the market right now, all three of them designed to treat hepatitis B or hepatitis B exposure in both immunocompromised patients and patients with a healthy immune system.
In fact, Nabi-HB, the company’s oldest drug, has been the industry standard for treating people exposed to hepatitis B to prevent infection from setting in for over 20 years.
But the company also produces plasma and plasma protein for drug developers as well as does contract manufacturing and laboratory services for other companies that need it. Demand for ADMA’s products across all sectors is growing at a rapid clip, and that’s best evidenced by its balance sheet.
For the third quarter of 2023, the company netted revenues of $67.3 million, up 64% year over year. On the back of that revenue, ADMA saw its adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) grow to $12.7 million, up 98% quarter over quarter.
It also saw its first positive GAAP net income ($2.6 million) and its first positive operating cash flow ($12 million), which brings its total cash position to $74.2 million. The results were so good that the company increased its fiscal 2023 revenue guidance to $250 million from $240 million.
Earnings and revenue are both set to continue growing as ADMA’s market expands.
No. 2 Retirement-Changing Stock: MannKind Corp. (Nasdaq: MNKD)
MannKind Corp. (Nasdaq: MNKD) is a biopharmaceutical company focused on inhaled therapeutic products for endocrine and orphan lung diseases. The company’s lead product is Afrezza inhalation powder, which is an ultra-rapid-acting inhaled insulin indicated to improve glycemic control in adults with diabetes, which was approved by the Food and Drug Administration (FDA) in June 2014.
The company is also working with United Therapeutics to develop another inhaled insulin formulation, known as Tyvaso DPI, for the treatment of pulmonary arterial hypertension and pulmonary hypertension associated with interstitial lung disease. It reached a major milestone in June 2020 with the announcement that the FDA accepted for priority review of the New Drug Application for Tyvaso DPI.
Earnings per share are forecast to grow 70% next year and by an average of 36% over the next five years. The stock is cheap not only based on its market price but also compared with its peers. With a price-to-cash ratio of just 6.05, it’s one of the cheaper, yet very promising, biopharmaceutical companies in the industry, which generally trade at far greater multiples over their cash holdings.
No. 3 Retirement-Changing Stock: Inter & Co. (Nasdaq: INTR)
With a population of about 214 million, Brazil is the second-largest market in the Americas, behind only the U.S.
And Inter & Co. is there to provide Brazilians with the banking infrastructure they need. It provides them with banking products and services, checking accounts, credit cards, deposits, and loans, among other things.
Inter is already one of the larger regional banks in Brazil and, based on the company’s growth, Inter’s goal of reaching 60 million clients by 2027 is well within reach. For the third quarter of 2023, the bank’s client count surged by 1.6 million, totaling 29.4 million.
On the financial side of the third quarter of 2023, Inter netted total gross revenue of R$2.1 billion, up 39% year over year. Record net income totaled R$104 million, marking the fourth consecutive quarter of bottom-line growth. Transaction volume totaled R, up 41% year over year.
With growth like that, Inter is well on its way to being one of the dominant banks in a colossal emerging market. It won’t be sitting around $5 for long.
No. 4 Retirement-Changing Stock: Applied Digital Corporation (Nasdaq: APLD)
The data center market is already colossal, and it’s set to grow incredibly fast over the decade as our need for computing power surges through the roof thanks to the rise of artificial intelligence and the digital economy. Statista projects the market will reach revenue of $438.6 billion by 2028. And Applied Digital Corporation (Nasdaq: APLD) is your $5 entry point into that market to grab a slice of those billions for yourself.
Applied Digital designs, develops and operates data centers in North America to expand the continent’s high-powered computing infrastructure, including artificial intelligence cloud services, data center hosting and cryptocurrency mining.
And the growth in the data center market is beared out in Applied Digital’s balance sheet.
For the first quarter of the company’s fiscal 2024, Applied Digital brought in revenue of $36.3 million, representing sequential revenue growth of 65%. The company holds cash reserves of $5.9 million, and net cash received from operating activities topped $4.5 million in the quarter.
Data centers are set to only grow in the coming years, and as they do, Applied Digital will too. It won’t remain the $5 bargain it is today for much longer…
No. 5 Retirement-Changing Stock: LuxUrban Hotels (Nasdaq: LUXH)
The COVID-19 pandemic is over, but its effects still linger, especially in the hospitality industry. For a year, travel just about stopped. Then it slowly recovered for about two years, and many hotels around the country and around the world suffered as a result, unable to fill vacant rooms or generate revenue.
That in turn left tons of hotels unable to make ends meet, and LuxUrban Hotels Inc. sprung up to help out. The company signs long-term, low-cost operating leases on hotels struggling to fill vacancies. That essentially allows LuxUrban and the hotel owner to split costs. LuxUrban handles the day-to-day operation while the owner handles the building costs.
It’s a win-win, one that is allowing LuxUrban to make money hand over fist. For its 2023 third quarter, LuxUrban reported revenue of $31.2 million, up 170% over the $11.6 million it brought in for Q3 2022. EBITDA grew 250% to $8.4 million from $2.4 million in the third quarter of 2022. Net income improved to a quarterly record for the company of $4.9 million, or $0.11 per share, from a net loss of $3.2 million in the third quarter of 2022.
In the year and change that LuxUrban has been operating, net rental revenue and EBITDA have increased at absurd compound annual growth rates of 147% and 181%, respectively.
Growth that explosive is exceedingly rare and will only continue as travel continues its post-pandemic pickup. LuxUrban is just under $5 at the time of writing, but it won’t stay there. Pick up a few shares today.