The Goldman Guide

After what seems like 20 hours of labor, I have given birth to the latest edition of The Goldman Guide, and it has more stuff packed into it than a can of spam.

• See why history suggests the bull market is over
• You won’t believe the year-end S&P 500 Index forecasts by these 19 chief strategists
• Like data? We got it out the *ss, plus a big winner from last week’s issue.
• Our 17 small cap stock picks are up huge, including 5 up 20% or more in 2015
• You too can use covered calls to eke out higher gains in a narrow market

We hope you and your family had a meaningful Memorial Day weekend. You are going to love this week’s issue of The Goldman Guide. Here’s why:

• We feature 2 stocks that trade at a P/E under 10x that could jump 50%
• See how numbers and information lie and how that affects the market and stocks
• Are we reaching the magic P/E number that starts a wave of selling?
• These investment blogger and individual investor surveys portend future stock direction

Plus, this week we introduce a new segment called The Investor Academy whose topics range from Investing 101 to industry and investing secrets culled from our many years’ of experience in analysis, investment banking, and mutual fund investing. This week we highlight: Why Stock Buybacks Are a Bad Thing.

It may sound implausible but there is a way to play the volatility and downside nature of the stock market for just $1. It is a very risky play and is just for day-traders. But, since this ETN (like an ETF) is at a year low, even a modest move down or a bump in volatility could move this low-priced play higher quickly. Please do your own due diligence and move quickly when selling! Read more in the latest issue of The Goldman Guide.

Anyone else notice that stocks and the market are trading like opposite day? It’s the craziest thing but we outline it and why we have a totally new investment landscape and factors moving equities today. Read more in the latest issue of The Goldman Guide.

Also in this week’s issue of The Goldman Guide we tell you why the biotech craze is about to run its course and how some of the latest data may portend we go lower before we go higher in the market. Read morein the latest issue of The Goldman Guide.

Also, the financial press seems to be all over recent moves by some of the biggest names in the investment business, driving some small stocks to meteoric heights. Is this good and should you follow the herd? Plus, how has the performance been on these plays?

Judging by a series of comments and surveys, the argument could be made that there are more investors sitting on the fence (Neutral) than those who identify as bullish or bearish. This is dangerous and means volatility and muted returns are ahead for the interim. That is one of the reasons why some retail investors are actively seeking the “stock of the day”, in the hopes of striking gold with another Voltari situation, which was a huge hit for us, by the way. Therefore, it is no surprise that last week two biotechs were up 100% in one day last week, including a stock that now has George Soros as an investor.

With that in mind, we answer the following questions in this week’s issue of The Goldman Guide:

• Do we think this Soros target is the next Voltari?
• Is the market getting “toppy” as Janet Yellin noted last week?
• Where is the smart money going?
• Will this 48% gainer over the past 2 months move higher?
• Is this low multiple growth stock a steal if it drops due to breaking news today?
• Can this low-priced 30-30 stock that jumped 13% last week, leap higher?

As we celebrate the 5th anniversary of The Goldman Guide, the new look Guide is bigger and better than ever.  In fact, it is more than twice the length of our previous issues but is built to be the only thing you need to read to quickly get caught up on the market and a few steps ahead of other investors.

In addition to traditional market insight, we now feature: links to a handful of the most important (and unique) stories on the Web, a series of key stats to provide you with an edge, and the latest news on stocks we have featured in the Guide thus far this year.

Importantly, see how and why our small cap picks are up an average of 27% for the first four months of the year versus a paltry 1.2% for the Russell 2000, and which ones still have room to move much higher. We also make changes to some of our previous picks.

Finally, after a series of very recent issues that have resulted in the suspension in trading and the voluntary delisting from NASDAQ, we are suspending coverage of ForceField Energy (NASDAQ – FNRG) pending clarity in prospects and resolution to the issues outlined in its filings. 

As always, we feature a new stock that could see a big rise this year. Granted, it looks terrible from the technical perspective but for those investors looking for value in the sub-$3 health care space, this stock has a low valuation to go with its high EPS growth rate.

I admit that stocks could go a bit higher for a couple of days. Still, many signs all point to a small swoon not later, but soon, as in Friday! (Important: We are not just referring to the Sell in May and Go Away strategy, but other key data points.)  Read why this is bound to occur and what you can do about it.

Thank you all for the great feedback in last week’s survey. We are taking all of your suggestions and the survey results to heart and major changes in the Guide will be evident, beginning next week. In fact we address some of them in this week’s issue when we review the performance of 3 select stocks profiled in 1Q15, including a 30% winner in just six weeks.  See what we believe is in store for these 3 stocks and how to play them.

As we near the month of May and talking heads tell you to “Sell and Go Away”, we are taking a different approach. The way to succeed in the near term is change. Here is what this concept really means:

• Today is 4/20 which means marijuana stocks will be front and center. Day trade them, but don’t hold on for too long.
• By the way, do you have winners? See why and how you need to find a balance between being married to a winning stock and becoming a serial stock dater.
• We are in the midst of major changes to the front-end of our website and our current offerings and will soon be introducing a series of new offerings. See how you can have a role in our content and delivery changes.
• We give you a glimpse of a new bi-weekly publication on the cannabis space, slated to be released this month. We are the only firm in this arena that has years of experience in launching and covering a new industry that added billions in market cap to investors. Our one-of-a-kind newsletter will be a must-have for any and all marijuana industry and stock investors and will include feature stories on companies slated to go public so you can have an edge!

A lot of market watchers are focused on earnings reports this week but they are focused in the wrong area. Looking for big gains instead? Here is what you need to know:

• We had a sub-$3 monster winner last week that jumped 141%. See what you should be doing with it now.
• See how Under Armour just hit the jackpot over the weekend.
• The financial press is screwing with our minds. Be careful what you read. Still, for some reason, they can’t see that small stocks are going to rock ahead.
• This sub-$10 stock hit an all-time high, is above all DMAs, trades without a lot of volatility and with filling gaps, offers big upside and based on historical trading, has little downside. A steady, methodical 25% gain may lie ahead.

Judging by the first quarter performance, small stocks are besting big stocks by a wide margin (4% versus flattish) and that trend is likely to continue well into the second quarter. Even some of the investing world’s biggest names are gobbling up stocks in the small cap and microcap world. In fact, a major “icon” in this arena just acquired over 50% of a $12M microcap. I do not know his intentions, but judging by his track record, I suspect he believes it has the ability to increase in value by rise 2-5x from current levels. With that in mind, perhaps it is not a bad idea to ride his coattails. Click the link below to see which microcap is now in serious play. Plus, see how our picks fared in Q1 and which ones we like for Q2.

Well, things were really volatile in the market last week and we outline why that actually is a good thing if you are an opportunistic trader, since you could generate impressive short term gains. This is especially the case when oil spikes on geopolitical news and the market drops in response.

As Easter approaches, a lot of Americans have candied Easter eggs on the brain. After reviewing the strong performance of our Annual small cap Thanksgiving Picks and Pans we believe that one of the profiled stocks in the late 2014 report is still a special kind of “candy” whose stock is very attractive at current levels.  

(Hint: It is not exactly candy…)