Watching last week’s New Hampshire Republican Primary debates I was reminded…
Washington D.C. is a cauldron of corruption and dishonesty.
These guys stand on stage slinging insults and making false claims – knowing full well they’ll have to turn around and endorse the GOP frontrunner to dethrone President Obama.
I’m not saying the Democrats are any better – they’re not.
Both sides play a deceitful game that can’t be rationalized in a normal, healthy society.
They play by a completely different set of rules.
Politicians’ special rules apply to insider trading too. Congress-people are actually allowed to trade on information they gather in the course of their jobs. This clearly gives them a leg up on individual investors. If a CEO did the same thing, he’d be locked up for years.
It’s completely bogus.
But there is an upside to this sham. We can’t get access to stock-moving information as early as Congress. But if we follow their moves we can be right behind them – and in front of most other investors.
Just 10 blocks from the White House, a secretive group of congressionally appointed officials are busy at work producing endless reams of reports.
Many of these reports, which I call ‘Folios,’ look like any other example of pointless government paperwork.with one small exception. The information in certain Folios can make small-stock investors a handsome amount of money.
That’s because most small stocks – companies with market caps below $1 billion – are not closely followed by the broader investment community. Much of the information relevant to their business, and share price, is simply unknown.
But these folios are actually designed to reveal major events that you should know about, and which could shoot the stock higher. Things like mergers, major growth initiatives, distribution agreements and so on.
A few small-stock analysts, like me, spend most of their time sifting through reports to find the nuggets of information that will lead to multi-bagger returns. In short, I rely heavily on the information contained in these Folios.
What’s crazy is that these reports are available for your viewing. But most people just don’t take the time to read them (or know where to find them) even though they are filed by thousands of companies every day with the Securities and Exchange Commission (SEC).
Why don’t investors read these reports? Three reasons:
1) They’re extremely dry and filled with legal jargon
2) There are literally thousands of forms filed daily, which means tons of manual work
3) The useful information is often buried amid the legalese
But if you know which companies to watch, and then monitor their filings for meaningful events, you’ll have an edge. Not as good as congress-people, but close.
Digging through these forms for the relevant information is what I do. It’s my area of expertise. It’s not glamorous or easy. But it is exciting – especially when you confirm that the catalysts you’re expecting to translate into significant growth for a company, and its share price, are having the desired impact.
Here’s an example. In mid-December I published a report entitled Stock Tips Directly from Washington D.C. The report outlines how to invest based on the information in Folios, and suggested three companies that investors should buy.
A month after that report was published one of the companies – a silver miner – filed a Folio stating that it had been included in one of Canada’s major indices. This gives the company much more investor visibility, and indicates that management is executing its growth plan (which was the reason I first recommended the stock).
Since the filing, the stock is up 5.6%.
The results for another company in the report were much more dramatic. This gold miner also filed a Folio (actually two of them) a month after our report was published. The filing stated that this company was on target to achieve full production in 2012, and that it had increased its gold resources.
Since the filing, the stock has skyrocketed, rising 22%.
Did congress-people buy into these stocks based on the filings before they became public? It’s impossible to say.
Did the stocks move higher because of the information contained in the reports? You bet.
Naturally a strong market over the past few weeks has helped. But these filings confirmed that the companies are on target to achieve the results early investors expected.
Early access to this information is absolutely critical when investing in emerging companies, especially when your goal is to make 100% gains, or more.
By anticipating positive catalysts before they happen, then taking decisive action at the right time, investors are able to enjoy huge gains in the stock when the rest of the crowd finally catches on.
Not every stock that files a Folio is going to be a winner, of course. And not every Folio contains stock-moving information. But as I said above, I absolutely rely on these filings to find, recommend, and even buy small-growth stocks. It’s one of my most powerful tools.
Learn more about this game-changing tool by downloading Stock Tips Directly from Washington D.C. today.