The Goldman Guide

Good morning! As I feared last week, after a dead cat bounce early in the week, we hit a real corrective phase with one of the worst performing weeks for NASDAQ and the Russell 2000 in years. We originally thought that the correction might not yet occur until May, but the selling appears to be in full swing.  Given the present volatile situation the GSCR team felt it would be an opportune time to provide background, projected market moves and recommendations. With the start of the Passover holiday Monday evening, our modified roundtable featuring Rob Goldman and Steve Hercenberg is dubbed:

“The Seder Table.”

With the major NASDAQ sell-offs of the past 2 weeks, the Composite is down more than 5% from its high this year. Is this an aberration or will there be a correction soon? Momentum stocks have sold-off sharply and the sector rotation we predicted last month is in full force.  See what types of stocks (such as Growth at a Reasonable Price) to buy to take advantage of the shift in the market and what has been working while the indices are dropping. Plus, see what lies ahead.

Good morning! It is Opening Day in baseball but the sports world is reeling from the madness that is college basketball. See this week’s Guide to see what the future could bring.

⇒ Based on what the stock market did last week, up is down and down is up, so do the opposite of conventional investors

⇒ This apparel stock will do well in the spring since the time between Easter and Mother’s Day is its best season

⇒ Just because the King IPO flopped does not mean the sector is dead. This stock could bounce back

⇒ Don’t be an April Fool. Changes in government policies are destined to hurt us, not help us. Benjamin Franklin was way ahead of his time.

Keys to successful investing are based on recognizing trends before they happen. This week we highlight three signs that small caps’ rally is likely to be extended in the near term despite the current geopolitical situation abroad.

Ever hunger to get involved in a hot IPO but knew you had no real chance? Do not let it bother you because there are ways to generate outsized returns with lower risk by buying stocks in the IPO’s industry ahead of the IPO itself. In this scenario, we believe that in the trading days prior to and immediately following the scheduled March 26th IPO of King Entertainment, the wildly popular Candy Crush Saga game publishing parent, one of its publicly-traded peers will set new highs as a rising tide lifts all boats.

By now, most of you have heard the terrible news regarding the Malaysian airliner that disappeared over the weekend. It is believed that with some passengers carrying false passports on board it may have been the target of a terrorist attack, or perhaps was shot down by a missile.

I have followed security and bomb detection companies on and off for 20 years and anytime a perceived or real aviation attack occurs, explosive detection system companies rally for at least a couple of days. With that in mind, in this week’s The Goldman Guide there are 3 stocks to buy including stock that trades under $1.

Today’s edition of The Goldman Guide is the most important piece we have written in four years for anyone that is long small cap stocks.

Not only do I encourage you to read this piece in its entirety but I highly recommend you forward this to anyone you know that invests in small stocks. Tweet about it. Post it on message boards. The word needs to get out:

Short sellers are nothing but deceivers and you can make money at their expense. Do not fear them.

Today’s edition of The Goldman Guide notes that while we believe the risk is greater that the market will drop than rise, there are obvious sectors that could have a strong March. Separately, there is one sector in particular that will likely be the beneficiary of a migration out of consumer stocks. Finally, we demonstrate that a bunch of IPOs and questionable M&A like the Facebook deal are signals that the bull market is in the latter innings of its run.

While the broader market rose last week, small stocks lagged and declined for the week. We expect this trend to continue and that is not good news. What is really striking is the fact that based on news stories late in the week regarding Sony (NYSE – SNE) and Apple (NASDAQ – AAPL). We are truly concerned that we are seeing early signs of the next consumer technology meltdown.

While the broader market rose last week, small stocks lagged and declined for the week. We expect this trend to continue and that is not good news. What is really striking is the fact that based on news stories late in the week regarding Sony (NYSE – SNE) and Apple (NASDAQ – AAPL). We are truly concerned that we are seeing early signs of the next consumer technology meltdown.