The Dirtiest Word on Wall Street...

Published By Money & Markets, LLC. January 25, 2024 Published By Money & Markets, LLC. January 25, 2024 [Turn Your Images On] [Turn Your Images On] From The Desk of [Matt Clark, CMSA™]( Chief Research Analyst, [Money & Markets Daily]( [The Dirtiest Word on Wall Street…]( Money & Markets Daily, The word “cheap” gets a bad rap in the stock market. That’s because we think of “cheap” as being of low value or low quality — similar to a product made “cheap” (think, stuff you buy on Temu or the random knick-knacks in the discount bin at Target). Cheap in the stock market refers to more than just price. And being a “cheap” stock doesn’t mean a stock is bad. A lot of time, it’s a good thing because the price of a stock is low relative to its fundamentals or earnings. The reverse of that is buying a stock that you thought was cheap, only to watch it fall because it isn’t making any money (negative price-to ratios), doesn’t recoup investor returns (low to negative return ons) or doesn’t grow its sales or earnings per share. Why am I talking cheap today? Well, with major U.S. indexes trading at new all-time highs, you want to know if this rally has legs and what are the best stocks to buy for current conditions. And after Mike Carr touched on an incredible “hidden” rally within the Nasdaq in yesterday’s Money & Markets Daily, I wanted to look back at similar recoveries to see what we could expect. Today, I’m looking back at two volatile market years to show you just what some “cheap” stocks — meaning stocks priced under $5 in this context — would have returned for those investors that ignored the “cheap” market noise. --------------------------------------------------------------- [Turn Your Images On]( [ChatGPT, iOS and the Better AI Play…]( The smart money investors all know AI is the wave of the future and could mean huge profits for anyone involved. AI has been called the biggest new industry of the 21st century. Experts are projecting it will be worth a staggering $80 trillion over the next 10 years. And right now, Chief Investment Strategist Adam O’Dell is revealing his favorite X.AI stock you should check out today. [Click here to see the full story now.]( --------------------------------------------------------------- After the Dot-Com Bubble… From the mid-1990s to the early 2000s, internet stocks were all the rage. Due to a massive influx of capital from investors across the board, stock valuations went through the roof … to the point where prices were unsustainable. A lot of these stocks were fledgling businesses or startups that had little to no record of profitability. You all remember Pets.com… The bubble burst in March 2000, and these stock prices declined rapidly. Finally, in 2002, the market bottomed out. I looked for lower-priced stocks and found some incredible data. One stood out among all the others: [Turn Your Images On] Apple Inc. (Nasdaq: AAPL) started 2002 at $0.42 per share. The stock went on a massive run and, as I write, is priced at $195.20 per share … a nearly 48,000% jump! It’s not the only stock that started “cheap” and went on to produce massive returns: [Turn Your Images On] Stocks like Nvidia Corp. (Nasdaq: NVDA), Steel Dynamics Inc. (Nasdaq: STLD) and Nike Inc. (NYSE: NKE) all started 2002 priced below $5 per share. They all went on to produce massive peak gains of 10,575%, 4,555% and 2,394% into 2024. It wasn’t the only time stock market downturns yielded “cheap” stocks that turned into huge winners. --------------------------------------------------------------- [Turn Your Images On]( From our Partners at Banyan Hill Publishing. [The Next Wave of MLP Checks Is Set to Go Out April 2]( 30 Energy companies have been legally approved to payout $17.9 billion dollars to investors in the form of “MLP Checks” this year. [Click here for details.]( --------------------------------------------------------------- 2009’s Crash Brought a New Crop of “Cheap” The start of 2009 was disastrous for the market. In the first two months of the year, the S&P 500 declined 18.6% — one of the worst starts to the year for the index. The Dow Jones Industrial Average declined 50% from its October 2007 peak to March 2, 2009. This was after another bubble popped … this time with housing. From that low on March 2, 2009, I found another batch of stocks that were “cheap” — meaning priced below $5 per share here — yet went on to produce huge returns: [Turn Your Images On] United Rentals Inc. (NYSE: URI) hit its low of $3.20 per share in March 2009. Since then, the stock has skyrocketed more than 15,000% to where it is today. Like 2002, it wasn’t the only “cheap” stock that took off: [Turn Your Images On] Stocks like Crocs Inc. (Nasdaq: CROX), Advanced Micro Devices Inc. (Nasdaq: AMD) and Louisiana-Pacific Corp. (NYSE: LPX) returned huge gains after being priced below $5 a share in 2009. Bottom line: In the investing world, “cheap” isn’t a bad thing. As you can see from these examples, lower-priced stocks went on to produce market-busting returns, giving those who bought at the right time huge gains in their portfolio. It’s this research that led our chief investment strategist, Adam O’Dell, to create a new strategy targeting the best stocks priced below $5 on the market today. The strategy positions bold investors savvy enough to take advantage of these smaller stocks. You definitely want to learn more about this market-breaking strategy. To find out how you can join and follow Adam’s guidance into these stocks, [click here.]( Stay Tuned: The Survey Says… Tomorrow, Managing Editor Chad Stone is going to review the results from our recent survey. Thank you all, for submitting your responses! (You can still add your own submission [here]( if you’d like.) He’ll also hit on some stocks using Adam’s Green Zone Power Ratings system, because two-thirds of you said you wanted more. Until then… Safe trading, [Matt Clark, CMSA™]( Chief Research Analyst, [Money & Markets Daily]( --------------------------------------------------------------- Check Out More From Money & Markets Daily: - [OUTPACE THE MARKET: YOUR SURPRISING EDGE IN SMALL STOCKS]( - [GO BEYOND THE “MAGNIFICENT 7” FOR SMALL-CAP GAINS IN 2024]( - [COMMERCIAL REAL ESTATE IS STILL SHAKY (1 REIT TO AVOID)]( --------------------------------------------------------------- [Turn Your Images On]( Privacy Policy The Money & Markets, P.O. Box 8378, Delray Beach, FL 33482. To ensure that you receive future issues of Money & Markets, please add info@mb.moneyandmarkets.com to your address book or [whitelist]( within your spam settings. For customer service questions or issues, please contact us for assistance. The mailbox associated with this email address is not monitored, so please do not reply. Your feedback is very important to us so if you would like to contact us with a question or comment, please click here: [( Legal Notice: This work is based on what we've learned as financial journalists. It may contain errors and you should not base investment decisions solely on what you read here. It's your money and your responsibility. Nothing herein should be considered personalized investment advice. Although our employees may answer general customer service questions, they are not licensed to address your particular investment situation. Our track record is based on hypothetical results and may not reflect the same results as actual trades. Likewise, past performance is no guarantee of future returns. Certain investments carry large potential rewards but also large potential risk. Don't trade in these markets with money you can't afford to lose. Money & Markets permits editors of a publication to recommend a security to subscribers that they own themselves. 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To ensure that you receive future issues of Money & Markets, please add info@mb.moneyandmarkets.com to your address book or [whitelist]( within your spam settings. For customer service questions or issues, please contact us for assistance. The mailbox associated with this email address is not monitored, so please do not reply. Your feedback is very important to us so if you would like to contact us with a question or comment, please click here: [( Legal Notice: This work is based on what we've learned as financial journalists. It may contain errors and you should not base investment decisions solely on what you read here. It's your money and your responsibility. Nothing herein should be considered personalized investment advice. Although our employees may answer general customer service questions, they are not licensed to address your particular investment situation. Our track record is based on hypothetical results and may not reflect the same results as actual trades. Likewise, past performance is no guarantee of future returns. Certain investments carry large potential rewards but also large potential risk. Don't trade in these markets with money you can't afford to lose. Money & Markets permits editors of a publication to recommend a security to subscribers that they own themselves. However, in no circumstance may an editor sell a security before our subscribers have a fair opportunity to exit. Any exit after a buy recommendation is made and prior to issuing a sell notification is forbidden. The length of time an editor must wait after subscribers have been advised to exit a play depends on the type of publication. (c) 2024 Money & Markets, LLC. All Rights Reserved. Protected by copyright laws of the United States and treaties. This Newsletter may only be used pursuant to the subscription agreement. Any reproduction, copying, or redistribution, (electronic or otherwise) in whole or in part, is strictly prohibited without the express written permission of Money & Markets. P.O. Box 8378, Delray Beach, FL 33482. (TEL: 800-684-8471) Remove your email from this list: [Click here to Unsubscribe](