The Goldman Guide

Well, our NCAA tournament picks may be terrible but we pegged last week’s rally and the statement on inflation and interest rates by the Federal Reserve could have been lifted directly from last week’s issue. In any event, now is not the time to look into the rearview mirror. After all, it is clear that last week’s rally is not a one-time event, as evidenced by extremely high volume that signals institutions are buying this rally heading into Q2.  What may be more important are the signals that once again, individual investors are the key, on a contrarian basis, to stocks’ direction. We have some data points that illustrate why the next month…and only the next month, could be huge for small stocks, with a drop thereafter.  See why believe the rally could stop in its tracks by late April.

Ever notice how some people see to have that “it” factor? Stocks have it too which is why they tend to make big runs when they engage in shrewd moves that raise their profile and can raise their stock prices as well.

This week we highlight two low-priced NASDAQ stocks that have that “it” factor.  One that could bust through to its 52-week high can be found below:

This issue is not your run-of-the-mill investment newsletter. After all, how often do you see comments about orgasms or the NCAA Basketball tournament come into play with investing?

Look, after last week's performance it is time investors are shaken out of their paralysis so they can wake up, smell the roses and get out of neutral.  The good news is that most of the market signals point to Smallville and key segments of the small cap arena which right in the sweet spot of you, the subscriber. Of course, we would be remiss if we didn't highlight a stock that could gain nearly 30% in the coming months. It's a bit out of the box but a stock with a high profile founder, great brand recognition and happens to be coming off highs and then lows following a wildly successful late 2014 IPO that flew too far too fast.

In our view, stocks are primed for another run, despite the concerns of interest rate hikes, which prompted a big selloff on Friday. It appears that market pros forgot to monitor a very important market "tell" that indicates an interest rate hike has already been factored into stocks.  Click the link below to see what that "tell" is.

With higher interest rates on the horizon, growth stocks are usually the best place to be.  Based on changes in accumulation/distribution/valuations, small caps appear to be in the best shape for the near term and we expect that money flows will bear this out.  See which three sectors could be the biggest beneficiaries of this trend.

As part of our due diligence in researching these sectors, one stock, which is household name to many, shines above the rest. Check out some of these characteristics:

• It is expected to enjoy its third consecutive record revenue quarter in 1Q15
• EPS in 2014 was up 50% from 2013
• EPS in 1Q15 could be almost as much as EPS recorded for the entire 2013 year
• Wall Street expects a 44% jump in EPS this year, but the stock trades at a 17x multiple
• Leading peers trade around 30x and 70x this year's EPS, respectively 

Fifteen years ago the NASDAQ Composite reached the 5000 mark and the S&P 500 rose by nearly 10% for the month before beginning its long spiral downward. Are we about to break through it again only to move lower? And, what will impact stocks' performance this week?

Looking ahead, now that millennials comprise the biggest group of Americans, how will their goals, behavior and agendas affect stocks and the economy? Plus, we profile a stock that a millennial would love…

All this talk about energy prices ad global economic issues are not just exhausting but have taken attention away from other sectors, such as tech, health care and industrials. Still, these segments offer upside via ETFs and especially small caps. Which ones appear to be the most attractive? Click the link below. (Hint: We profile a previous pick that is up 1000% but still offers upside through midyear.)

We are at the midpoint in the quarter and we have already highlighted 14 stocks in The Goldman Guide and one stock is up 30% in less than 2 weeks. See which stocks are screaming still buys and must sells--immediately!

Plus, we profile what we believe may be the #1 small cap stock---it trades 9x 2015 EPS estimates but has 50% upside despite the fact that virtually every electronic device is produced using its technology. The Street may be asleep at the switch, but not for long.

Well, we knew that February would be a much better month for stock than January but last week's performance surprised everyone. Anyone else notice that the major indices ended last week almost exactly where they ended 2014?

Now that we have basically come full circle market-wise, what should be your approach to stocks? Not only do we outline short and intermediate term strategies but we highlight two stocks that are very familiar companies to you---because of their ubiquitous commercials. One is a household name while the other is a $10 microcap taking the consumer by storm—yet trading at a P/E that is half of its growth rate.

Today is Groundhog Day but more important, the month of January is over, which probably is a good thing, considering its lousy performance. Still, for all of the doomsayers, we outline how over the past 10 years, a down January is usually good for investors and stocks for the balance of the year. 

Now that the Patriots have won another Super Bowl, what does the Super Bowl indicator tell us—and is it right this year? We think it is wrong. See why that is the case in this week's Guide.

Finally, we introduce a stock that delivers goods, solid results and stock performance---and has done it like clockwork during this time of year for the past 3 years. With just-released results ahead of estimates, see why this stock that women love could be a winner for your portfolio over the near term.

Super Bowl week is upon us and that is always a lot of fun. But there are two sides to every coin. On the one hand, the backdrop of bad weather, a weak market and big layoffs, means that the market has to hang its hat on a good reporting season from megacaps this week.

On the other hand, if one looks into other sporting arenas, there may be a play that could result in a hole in one rather than keeping you mired in the sand trap or bunker. Check out the stock that could club other sports-themed equities in the latest edition of The Goldman Guide.

Remember when we were kids and when things started off poorly we claimed "Do Over?" Well, it looks as if that may be happening with stocks. The first two weeks "do not count" and based upon fresh data, reading the tea leaves and between the lines, stocks are on pretty good footing---again. Granted, this year is now a stock picker's market but we think we have pegged what should work and what should not from the geographical and equity class perspective, and lay it out for you in easy terms in this week's issue of The Goldman Guide.

Plus, see what small cap stock that is initiating a stock buyback should outperform over the next month, along with a small cap that appears ready to crater for you short-sellers out there.