The Beaten-Down Blueprint (Explained)

Hated stocks in dead industries. [Altucher Confidential] August 31, 2023 [WEBSITE]( | [UNSUBSCRIBE]( Sometimes, to win big, you need to zig when the world zags. Here’s how the big boys do it. [Hero_Image] The Beaten-Down Blueprint (Explained) Urgent “Red Alert” Warning For This Friday Due to the controversial nature of the following content, [this urgent “Red Alert” warning]( will be taken down on Friday at 4:00 PM ET. Don’t miss out, otherwise you could get blindsided. [Click here now for access](. [Click here to learn more]( [==> Click here now](. [Chris Campbell] CHRIS CAMPBELL Dear Reader, Everyone loves an underdog story. Yesterday, we talked about Grayscale winning its suit against the SEC. That’s a pretty good one. (Although, as mentioned yesterday, it’s not the REAL opportunity brewing in crypto. Stay tuned. More soon.) Today, let’s see another underdog story. This one’s a hated stock in a dying industry. You’re going to laugh when I say it. You’re also going to wonder… Why in the **** did Michael Burry just buy it? BUT first, in case you missed it… In Context, It Makes Perfect Sense Although they don’t see eye-to-eye on everything… Our colleague Jim Rickards just put his stamp of approval on James’ latest prediction. He said: “I’ve personally vetted his research, and what he found blew me away. That’s why I’m urging you to take a look for yourself -- because if he’s right, this new prediction could have a potentially major impact on your wealth in 2023.” While most people would be tempted to overlook this sector, James is pounding the table. In case you missed it… [Here’s EXACTLY what James said.]( Now, zoom out. Let’s put James’ prediction into context. The Beaten-Down Blueprint When it comes to investing… There's something so seductive about fishing in the cesspool of despair, especially when you find a misunderstood gem. There’s no greater high than getting in before the market realizes what’s going on. That's the bread and butter of deep value investing, a method that Michael Burry -- of The Big Short fame -- has used to great success over the past decade. He doesn’t always get it right, but he’s gotten it right enough to not care when he gets it wrong. (The dream.) Here’s his secret: Find an Industry in the Doghouse: The more hated, the better. Do Research: Determine which companies are still generating a torrent of cash. Valuation Analysis: Get cozy with downside risks. Sizeable Investment: Don’t be shy—buy enough to make it matter. Wait for a Catalyst: Keep an eye out for any event that could boost the share price. Sell at a Profit: The grand finale is to sell, making a handsome profit. It’s a recipe of such devilish simplicity, yet it’s worked wonders for many, converting them into financial gurus. And I believe the same formula applies to one stock Burry recently plowed into. Don’t laugh! New “WiFi Crypto” Token is Going NUTS! Only a handful of crypto investors know about this… But there’s a tiny, affordable device… That’s paid investors real crypto – every day, with zero work… Just for having a working WiFi connection! It sounds crazy, but it’s true… And [this 3:28 video]( explains everything. [Click here to view it NOW](. This Stock’s Got Heart In an era when "radio" sounds almost quaint, iHeartMedia, Inc. specializes in broadcasting and is the largest owner of radio stations in the U.S. But there's more than meets the eye. The firm has diversified into digital via its iHeartRadio platform, produces blockbuster live shows, and owns a myriad of popular podcasts. So… Why is it trading at basement-level prices? The stock took a nosedive over the past year, largely due to an advertising market slowdown and corporate debt. And yet… iHeartMedia is projected to generate $1 billion of annualized Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA). This suggests that its core business operations are quite profitable. The company is also buying back debt under par value. Par value is the face value of a bond when it's issued. Buying back debt under par value means that the company is repurchasing its own debt for less than it was originally worth, effectively reducing its liability at a discount. Now, let's look at the company's market capitalization and enterprise value. The market cap is $450 million, which is the total value of all the company's outstanding shares of stock. On the other hand, the enterprise value is $5.5 billion, which takes into account not just the market cap, but also short-term and long-term debt minus cash and cash equivalents. This is a more comprehensive measure of a company's total value. Deep value territory. And then, there’s the catalyst. Why Now? Election Season!!! I know a surprising number of people who believe there might not be an election in 2024. I’m not one of them. Political ads will flood the airwaves, pumping in advertising revenue. That’s good news for IHRT. But that's not even the kicker. What makes this all the more enticing is the high level of insider buying. We’re not talking chump change here. Insiders are buying millions in stock. Often a bullish indicator. [Bullish Indicator] (For the record, this is similar to how James uncovered his latest opportunity.) And, of course, not to mention… The Burry Bump Burry bought 600,000 shares, totaling around $2.18 million. According to his filings, he got in at $3.64. Current price? $3.63. [ALC] You can see all of this by digging into 13F files. 13F files are quarterly reports that U.S.-based institutional investment managers with over $100 million in qualifying assets must file with the Securities and Exchange Commission (SEC), disclosing their equity holdings. (13F filings can be insanely useful, but there is a lag. Keep that in mind.) This is just one example of how contrarians make their bets. You Have a Choice You can keep looking for investments that make you feel warm and fuzzy, stocks that everyone and their grandma are buying. OR… You can take a bet on an undervalued asset with strong potential for a reversal. Sometimes, to win big, you need to zig when the world zags. And that’s what James is suggesting in his latest prediction. Yes, it’s WAY bigger an opportunity than a beaten-down radio company. [Click here to catch up](. Until next time, [Chris Campbell] Chris Campbell For Altucher Confidential Urgent Notice From Paradigm CIO Zach Scheidt! [James Altucher]( Hi, Zach Scheidt here… I’m the Chief Income Officer at Paradigm Press. With inflation raging (and showing no signs of coming to an end any time soon), almost everyone in America is feeling the pain in a big way. Which is why, several months ago, I set out on a big mission… my goal was to create a [complete, step-by-step plan to surviving and beating inflation]( one that anyone could take advantage of. Today, after hundreds of hours of research, I’m revealing all of my findings. [Simply click here now to see how to survive America’s deadly inflation crisis](. [Paradigm]( ☰ ⊗ [ARCHIVE]( [ABOUT]( [Contact Us]( © 2023 Paradigm Press, LLC. 808 Saint Paul Street, Baltimore MD 21202. By submitting your email address, you consent to Paradigm Press, LLC. delivering daily email issues and advertisements. To end your Altucher Confidential e-mail subscription and associated external offers sent from Altucher Confidential, feel free to [click here.]( Please note: the mailbox associated with this email address is not monitored, so do not reply to this message. We welcome comments or suggestions at feedback@altucherconfidential.com. This address is for feedback only. For questions about your account or to speak with customer service, [contact us here]( or call (844)-731-0984. 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