Cash In on the Most Important Money-Making Season

Wall Street, in its stupidity, just gave us an amazing profit opportunity.

Let me explain.

See, like many of you, I love plenty of seasons: the holiday season, baseball season, college football season, and especially blue crab season.

But my favorite season, bar none, is money-making season. And that usually happens when earnings come around.

Now, I don’t trade around earnings surprises like some of the traders I know.

Instead, I look for Wall Street to do my job for me.

In this case, Wall Street being stupid about earnings.

They never fail to disappoint me…

And create some great money-making opportunities to boot.

Here’s an example…

A Brief Look for Instantly Better Returns

One of my favorite real estate investment trusts (REITs) just reported earnings.

They were slightly lower than the magic 8-balls in Wall Street offices “predicted.”

So the lemmings (some call them investment bankers) all fell in line to sell the stock, which pushed the price down.

I couldn’t be happier.

It gave fast-moving investors the opportunity to snap up shares of that REIT at less than half of what the real estate and cash flows held by that company were worth…

And wouldn’t you know it, the REIT quickly bounced back almost 30%.

But that’s just the beginning of money-making season.

Here’s how you can make money all season long…

Don’t Time Markets but the Right Season for Making the Most Money

Form 13F is a form that money managers and hedge fund types are required to file with the SEC revealing the stocks and bonds they own.

By comparing the current quarter to the prior one, you can quickly tell what the folks controlling trillions of dollars are buying and selling for themselves and their clients.

13F Filings can make you a ton of money if you know how to use them.

The media is going to talk all about what Warren Buffett is buying, or the other well-known investors are doing in a given quarter.

Most people will focus on what the main stream media tell them to follow and act accordingly.

I’ll share with you now one of the biggest lessons of over three decades in finance and markets has taught me.

If there is a crowd on Wall Street, then it is doubtful that the “huge money” opportunity will make any difference in your life.

My specialty is finding those hidden gems of overlooked stocks and knowing the events that most people don’t think are possible to make huge gains while everyone else misses out.

My method has given me an undefeated track record in the past few years.

Using the same math that MIT uses to power your phones, it gives me a list of trades to spot the best to go long and the worst companies to instead short.

While many people got excited about Tesla, they have some major problems.

The math was there plain as day.

Simply put, Tesla is not the only player in the game anymore and have not taken well to competition.

On top of that, their CFO quitting earlier this year just add to their issue of their negative cashflows.

I gave my clear suggestion here months ago that others missed out on.

You too could have the power to make huge profits off rare events that no one else is seeing at a low cost just by clicking here.

For that very reason, I make a habit of studying 13F filings and rigorously testing the data.

I want to find those money managers off the radar of Wall Street and mainstream media to find those who are racking up massive profits in the shadows.

There is one group of folks who consistently make more and I mean lots more money for themselves and their investors than anyone else in the financial world.

Net More Than Ever with This Overlooked Strategy

For decades now, private-equity firms have made more money than the leading hedge fund managers or market indexes.

No one pays any attention at all to what they do.

When we hear private equity, we think we can’t make money because they only take private companies, so ordinary folks can’t participate in those deals.

That’s wrong.

Private-equity firms do own publicly traded companies.

Some are companies they control and are looking to sell at higher profits as cost-cutting and debt repayment make the equity much more valuable.

Some are stakes they took in companies they like but either can’t or don’t feel the need to own 100%.

Private equity has long been the smartest, most patient money in Wall Street and cloning the portfolio can make your life-changing returns.

Kohlberg Kravis and Roberts (KKR) is the granddaddy of private equity firms.

They have been around pretty much since the birth of the buyout industry in the 1970s and have made a fortune for themselves and their investors.

Since the start of the firm, they have earned an average annual return of 25% before fees.

That’s the path to the type of investment success few people ever experience.

When you take fees out of the equation, the net return to KKRs investors is 18.9% annually, according to their 2018 investor presentation.

At that level of performance, ten grand grows to $318,000 in 20 years, and 50 grand becomes more than $1.5 million.

We can beat that return just by buying KKRs top holdings since owning the top 5 public positions held by the firm has returned 20.4% annually since 2008, and we don’t have to pay the incentive fee that big investors in KKRs funds have to fork over

Give Yourself a Better Future with These 5 Picks

Here are the current top 5 stocks owned by KKR that you can use to meet any goal or dream you may be working to attain.

I am leaving out their largest holding which is in the process of being acquired.

Shareholders who used this strategy coming into 2019 would have gained almost 70% on this stock alone:

Brightview Holdings (BV)- Brightview is consolidating the commercial landscaping and developing Industry across the United States.

Revenues and cash flow are growing, and they are now in the busier part of the year as summer increases the need for maintenance.

Brightview is now the largest company in the Industry and should be able to grow earnings by over 20% a year for the next five years as they continue to grow by consolidating an industry currently dominated by Mom and Pop contractors.

PRA Health Sciences (PRAH) is a contract provider of clinical development and data solution for the biotechnology and pharmaceutical industries.

They help companies navigate the clinical trials, regulations, and other stumbling blocks to drug approval.

They also provide data services and analysis used to run trials, determine the market for new drugs, and manage other steps needed to bring new medicines to the marketplace successfully.

KKR Real Estate Finance Trist (KREF) is on the business of making and buying loans secured by commercial real estate.

KKR has been in the real estate investing business for years and deals with managing and financing properties for their portfolio companies as well.

Earnings should grow in the mid to high teens and drive the already generous 8.5% dividend even higher over time.

Focus Financial Partners (FOCS) is another company seeing growth from a rapidly consolidating Industry.

The financial services industry is consolidating at a rapid pace, and it is going to continue.

New technology drives down fees and commissions across the bard, and smaller shops have a tough time gaining the scale need to compete.

Joining a partnership with other firms to share costs makes then far more competitive and profitable.

This consolidation should drive sales and earnings growth at Focus Financial for a long time to come.

Science Applications International Corporation (SAIC) is also going to see outsized growth from two important trends.

Unfortunately, those trends are growing government and military conflict, but since those are going to happen anyway, we might as well make some money.

SAIC provides a wide range of services including offerings in the red-hot cloud and cybersecurity space.

2018 was their best year since 2013, and they are looking to build on that this year. It seems to be working as they are continually announcing new contract wins.

All of this is why, the 13F season is one of my favorite times of the year, and it happens four times, not just once.

Digging in to find out who is making money and not just making news can be incredibly profitable for those willing to dig and test for those hidden gems.

To the Max,

Tim Melvin

Leave a Comment

View this page online: