BIG WINNERS INSIDE
We have had such a wild start to 2016 that we have elected to illustrate the performance of every stock profiled thus far this year. It is a testament to our process and is further evidence that our small cap trading newsletter, The 30-30 Report, has been a top-notch monthly publication for the past 5 years and is a must-have subscription at the low cost of just $99 per year.
We had a really rocky start to the year as we went with some high fliers. Since then we have been nearly perfect. For those of you who have chosen to sit on the sidelines, there’s no time like the present to take advantage of this streak, as it touches across our entire publishing spectrum…our premium newsletter The 30-30 Report, daily blogs, weekly newsletter, and even our sponsored research is on a tear of late.
Think of this missive as a “state of the state” with performance figures for every stock we have profiled in 2016. Already a subscriber? Great, tell a friend. Not a 30-30 subscriber? No time like the present. Not a big follower of our sponsored research? There is a ton to come now that valuations are so low and primed to bounce. There is a lot to like about what we have done and what lies ahead. Meanwhile, here are the uncensored results.
Premium: The 30-30 Report
It is hard to believe that our first premium newsletter, The 30-30 Report will enter its 5th year next month—at least not until you see the results. January was a disaster for everyone. Still, we managed to get some real play out of our 3 picks, which only recently peaked. These 3 stocks, while essentially matching the market on a current basis, has widely bested the Russell 2000 in terms of peak performance. For all 3 stocks to reach at least 20% in this environment is truly remarkable.
What may be most interesting is how we just absolutely killed it in February, with all 3 stocks up an average of 26% during a period where a 9.6% return from the Russell 2000 would seem to be unbeatable. However, since inception, our picks have tended to consistently outperform the index by a 3:1 margin and sometimes higher, on a peak performance basis, and has done so frequently on a current basis also.
Since The 30-30 Report is a premium product, we are not providing March results at this time. Suffice it to day that they are matching the market which bodes well for the future, in my opinion. That means the train has not yet left the station for those of you now planning to subscribe.
The Goldman Guide
We aren’t going to sugarcoat it, folks. This first group represented our picks in the weekly Goldman Guide from the first day of trading was an abject disaster. One pick was up 25% but has come back a bit on some questionable news. I should have known better as picking these high fliers is not my strong suit. That’s okay because I made up for it in the ensuing months. Truth be told, we really just got smacked on 2 picks and most were higher just 2 weeks ago. But, that’s the way it goes…
The next three groups’ performance truly shocked me. All 11 picks are up—and they are all different. They were selected in different months, are of different sizes and industries. Some are quite impressive. They represent small cap picks in February and March, along with mega caps from the beginning of the year through April 6, 2016.
The bottom line? These 3 groups averaged an increase of 18% versus the strong corresponding indices return of 5.9%. Even when we include the lousy returns above, our average drops to 10.2% while the indices’ average return declines to the 3.8% mark.
All four of these selections are beating the Russell 2000 and two are just kicking butt. We still like all four although INO may have made much of its run for now.
While February was good to us, March was no slouch.
I would take a 12% average return in 30 days in this environment anytime, and you should too. We should note that BSX is a midcap, MDXG a small cap, and BANC is a microcap bank, so the returns truly were broad-based, illustrating the strength in our process.
Meanwhile, while the small cap high fliers selected in the beginning of the year were not so hot our mega cap picks were terrific, another illustration that our approach can produce results in up or down markets, and with stocks in all categories.
If dividends were included this performance would be even more remarkable. Frankly, I may be most proud of this group since it is not in our wheelhouse and the returns versus the index are just so incredible.
We have struggled with trying to determine how many stocks to feature in the Market Monitor, our intra-week blog. I still don’t know the right answer, but the returns so far seem to match the rest of the publications.
Admittedly, January was just so-so, but handily beat the Russell 2000 Index.
…but February was really strong, with 3 of 4 stocks up solidly…
But, March? Incredible! Two small caps, a midcap bank, a large cap, and a high-flier sucking wind---and we nailed it. That TSLA pick might be the best single stock pick of the year for us, given the timing.
Our Opportunity Research (sponsored) segment has not been a big focus yet this year but will regain greater attention as valuations are just dirt cheap in this microcap space. We probably could not be more mixed with our 3 reports---1 down big, 1 unchanged, 1 up big. The latest one, KSIX, is up big time in less than two weeks and it seems as if there is a great deal of daylight ahead.
Rob Goldman founded Goldman Small Cap Research in 2009 and has over 20 years of investment and company research experience as a senior research analyst and as a portfolio and mutual fund manager. During his tenure as a sell side analyst, Rob was a senior member of Piper Jaffray's Technology and Communications teams. Prior to joining Piper, Rob led Josephthal & Co.'s Washington-based Emerging Growth Research Group. In addition to his sell-side experience Rob served as Chief Investment Officer of a boutique investment management firm and Blue and White Investment Management, where he managed Small Cap Growth portfolios and The Blue and White Fund.
I, Robert Goldman, hereby certify that the view expressed in this research report accurately reflect my personal views about the subject securities and issuers. I also certify that no part of my compensation was, is, or will be, directly or indirectly, related to the recommendations or views expressed in this research report.
This report was prepared for informational purposes only with performance data derived using Goldman Small Cap Research and Yahoo! Finance data.
Goldman Small Cap Research, (a division of Two Triangle Consulting Group, LLC) produces research via two formats: Goldman Select Research and Goldman Opportunity Research. The Select format reflects the Firm’s internally generated stock ideas along with economic and stock market outlooks. Opportunity Research reports, updates and Microcap Hot Topics articles reflect sponsored (paid) research but can also include non-sponsored microcap research ideas that typically carry greater risks than those stocks covered in the Select Research category. It is important to note that while we may track performance separately, we utilize many of the same coverage criteria in determining coverage of all stocks in both research formats. Research reports on profiled stocks in the Opportunity Research format typically have a higher risk profile, and may offer greater upside. All information contained in this report was provided by Companies’ filings, press releases or its website, or through our own due diligence. Our analysts are responsible only to the public, and are paid in advance to eliminate pecuniary interests, retain editorial control, and ensure independence. Analysts are compensated on a per report basis and not on the basis of his/her recommendations.
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