Why TALK Stock Soared 320% Since March

Mega caps are fine, but we can do better… Published By Money & Markets, LLC. January 29, 2024 Published By Money & Markets, LLC. January 29, 2024 [Turn Your Images On] [Turn Your Images On] From The Desk of [Matt Clark, CMSA™]( Chief Research Analyst, [Money & Markets Daily]( [What I Told My Grandpa About Stocks]( Money & Markets Daily, My grandfather always had a sharp eye on my career. In my newspaper days, he would always ask about a story I was investigating or a sports team I was covering at the time. We would talk for hours. When I switched to finance and the markets, he was always curious about how things worked — what made stocks move and what we look at when talking about companies or the economy. He read all of our essays. One day, before he died, he asked me about how the size of a company affects its daily stock market moves. I was thinking about that [last week]( while writing about some of the biggest post-crash stock recoveries of the last 20 years. I wanted to know what recent stocks soared after a crash. So that’s what I’m doing today… I found a “cheap” stock — meaning one that’s priced under $5 for this example — that rocketed higher after the 2022 bear market. --------------------------------------------------------------- [Turn Your Images On]( [AI Predicts #1 Stock to Own]( New AI-powered stock rating system — that isolates stocks with the highest probability of producing the biggest gains — just released details on the top-rated stocks... [Details here…]( --------------------------------------------------------------- The TALK of the Town After running some screens, I found a stock priced under $5, which has moved significantly higher over a short period. Talkspace Inc.’s (Nasdaq: TALK) technology platform connects patients with licensed mental health professionals. It offers therapy options for individuals, couples and teens. It can even connect patients to psychiatrists to prescribe medication when needed. And this can all be done through its innovative online portal instead of driving to another appointment. TALK investors have been incredibly bullish on the stock since last March… [Turn Your Images On] [(Click here to view larger image.)]( In March 2023, the stock was priced at $0.62 per share. TALK moved up to its recent high of $2.61 last week — a 320% jump in just 10 months! I mention TALK not because I think you should run out and load up on the stock — although it does carry a “Bullish” 61 overall rating on Adam’s proprietary Green Zone Power Ratings system — but to show you just how fast these sub-$5 stocks can move. --------------------------------------------------------------- [Turn Your Images On]( From our Partners at Banyan Hill Publishing. [What You Need to Know About the Middle-Class Massacre]( A looming financial event that one expert calls the “Middle-Class Massacre” will soon devastate millions of hardworking Americans. When it strikes, and all his research proves it will strike in 2023, he predicts stocks will crash 50% ... real estate will be slashed in half ... unemployment will surge to record highs ... and the wealth of millions will be decimated as the biggest bubble in history bursts. [Go here for the full story…]( --------------------------------------------------------------- Here’s What I Told My Grandfather When my grandfather asked me why size mattered in the stock market, I echoed something Adam told me years ago… First, there is nothing wrong with having mega-cap stocks in your portfolio. Apple Inc. (Nasdaq: AAPL) and Amazon.com Inc. (Nasdaq: AMZN) are good companies with strong track records. But these massive companies have a harder time beating the market over the long term. That’s because buyers and sellers determine stock prices. Prices go up when there are more buyers than sellers, and they fall when the opposite occurs. When you have a market cap measured in trillions, there has to be a lot … and I mean a lot … of buyers willing to pile in cash to move the price by a significant factor. But when you have a smaller market cap … say, almost $370 million like TALK … it doesn’t take nearly as many buyers to move the needle. That’s not to say that AAPL or AMZN can’t post strong gains, but it will take a lot longer than 10 months to hit that 320% mark. In the last 12 months, AMZN has gained just over 62% while AAPL is up 36%. Bottom line: Adam had another piece of insight about size … the bigger a company gets, the more natural it is for its growth to slow. In addition to his research, academic literature [supports the idea]( that smaller companies outperform large companies, in aggregate, over the long run. That doesn’t mean you should load up your portfolio with small-cap stocks. Turning your back on large stocks would be silly. But it’s this kind of research that prompted Adam to develop a trading strategy based on small-cap stocks ([especially the $5 variety](. This is a unique opportunity to get in on a strategy that Wall Street isn’t paying any attention to. [Click here to find out more…]( Until next time… Safe trading, [Matt Clark, CMSA™]( Chief Research Analyst, [Money & Markets Daily]( --------------------------------------------------------------- Check Out More From Money & Markets Daily: - [YOU HELPED ME FIND THIS BULLISH INCOME STOCK!]( - [THE DIRTIEST WORD ON WALL STREET…]( - [OUTPACE THE MARKET: YOUR SURPRISING EDGE IN SMALL STOCKS]( --------------------------------------------------------------- [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. 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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](