Investing

The Revelation of a Lifetime

By John Del Vecchio  |  March 7, 2019

We’re down to the wire here on the initial launch of my new service, Small Cap All-Stars.

I’ve made a special request to my publisher to allow me to reach out, personally, one more time, to offer you a chance to get in…

So, why should you give Small Cap All-Stars a try?

To answer that question, let’s talk about my latest trade. Of course, it’s a white-hot opportunity. There’s a twist to this story, though…

This recommendation is a good microcosm of my whole career.

You see, a while back, I actually shorted the company. And it worked out well. The stock absolutely imploded.

It had the typical hallmarks of a company in trouble. A poor distribution system leads to inventory issues… Unloading excess inventories adds major drags on profit margins and cash flow… Stuff gets blown out at fire-sale prices. Profits get killed… And the stock price tumbles.

I know this game, and I played it very well for a long time. That’s how I got started in this business, selling struggling stocks short. I even developed a software system that to isolate critical factors and identify particularly vulnerable stocks…

That short-selling experience led me to another key insight: Markets overshoot.

And that’s what’s happened with my most recent recommendation for Small Cap All-Stars: The market overshot.

I came to that conclusion because I’ve essentially “reverse engineered” my software system so it now churns out ideas on the long side…

And, simply stated, the selling has gone too far with the stock I’m talking about today. The underlying business is improving. The many issues plaguing the company are being resolved.

And no one’s paying attention… except my system. Certainly not Wall Street; indeed, the big investment houses can’t even participate in this part of the market.

This company I “bear raided” has now popped up on my screens as a buy. Earnings quality is good. The stock is starting to build some momentum.

Once others catch on, it could be a cash bonanza.

A 100% gain or more is doable. That wouldn’t even take it to a fraction of the price from where I shorted it. The upside is huge.

The beauty is that a stock can be a great short one day and a screaming buy the next. The only difference is price. It also goes to show that there’s no room for emotions in stock trading.

What’s better than making money on the way up and the way down? That’s how this particular story is playing out. There are many, many more like it… And I have a system that’s optimized to identify them.

Your opportunity here with Small Cap All-Stars is risk free. Try it out, read the archives, make a couple trades… There’s no reason not to investigate my latest recommendation.

Who knows? If it plays out like I think it could, the trade will pay for the service. Possibly many times over…

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John Del Vecchio

John Del Vecchio is the author of the bestselling book, Rule of 72: Compound Your Money and Uncover Hidden Stock Profits and What’s Behind The Numbers: A Guide To Exposing Financial Chicanery And Avoiding Huge Losses In Your Portfolio.

As the in-house stock market guru and forensic accountant for Dent Research, John stood on the shoulders of the great David Tice, James O’Shaughnessy and Dr. Howard Schilit, and built a framework of algorithms and a multi-factor grading system that has made him one of the more successful short-sellers around.

John is also the executive editor of our Hidden Profits newsletter and our trading service Small Cap All-Stars.

He graduated Summa Cum Laude from Bryant College with a B.S. in Finance and was awarded Beta Gamma Sigma honors. He earned the right to use the Chartered Financial Analyst designation in September 2001.MORE FROM AUTHOR