By: Chris Rowe — August 26, 2019
You should hear about this...
If you haven't been reading Bill Spencer's "Small-Cap Saturday" essays yet, then you're missing out.
He's mentioned so many ways that he's making money (I'll review them now, since many of the ideas are still applicable today).
And he's invited you to join him in his successful investing career over just the past two months.
It began in a June 22 article, when Bill set the stage and mentioned three small-cap stocks:
Prevention Bio (PRVB), a clinical stage Biotech.
Workhorse Group (WKHS), that builds electric cars, trucks and aircraft.
Cel-Sci Corp (CVM), a Virginia-based immunotherapy firm.
Workhorse Group saw a 90.11% return in just 40 days as it ran from $2.73 to $5.30, before pulling back to $4.09. If you can, buy it under $3.00 (Bill's buying range).
The other two small-caps are still in his buying range.
Then, the following week, Spencer busted the myth that you'd have an easier time finding dividend payers in the large-cap arena.
Spencer revealed that small-caps and large-caps had virtually the same median dividend yield (1.88% vs. 1.93%, respectively).
What's more, he pointed out that when it comes to stocks paying a higher yield than 10-year Treasurys, there are many more small-cap stocks (326 vs. 147).
When he united the dividend-seeking investors with the investor looking for the huge upside that smaller companies offer, many readers like you emailed their gratitude and relief.
Bill reads all of your feedback. And based on what you said, the following week, he brought you a small-cap REIT paying a 2% dividend that would increase that to 4%.
Bill pointed out that he was more interested in the capital gains than the dividend, and just one month after recommending Safehold Inc. (SAFE), the stock gained 8.16% while the S&P 500 lost 1.9% and the small-cap benchmark Russell 2000 lost 2.66%.
So it's not even like the stock merely traded up by more than the stock market. It traded up while the stock market declined!
He continues to be bullish on SAFE, especially after the recent market dip dragged the stock price down to his buying range again. It seems like it wants to trade lower in the short-term, but Bill's looking for a long-term blockbuster return from this one.
The same is true for Veracyte (NASDAQ: VCYT), a genomic diagnostics (Healthcare) company Bill recommended the following Saturday.
Like SAFE, this stock ran away -- up 13.17% in just ten days - even though the S&P 500 and Russell 2000 declined 0.95% and 1.61%, respectively. But now that it's pulled back below $25.00 (Bill's personal buying range), you have a second chance.
And by the way, every Saturday Bill covers the fundamentals of the companies he recommends, plus the future projections of the industry. He covers the technical analysis of the sector and the stock itself... and he even digs into how much institutional accumulation there is (mega-smart investors taking sizable positions).
Don't look now, but I haven't even gotten to the impressive trade ideas.
But just to review what we just covered. In his Small-Cap Saturday articles, Big Bill has:
And then he stopped "playing footsie" with our readers and things got crazy.
In his July 20th Small-Cap Saturday, he opened the article by saying the following:
"I have a $30 stock that just broke a new high, and that I think makes a relatively quick move to $40." He was talking about Live Person (LPSN).
The sock hit $40.00 in less than a month, gaining 42%.
Things are getting serious. Large investors are taking note. We've noticed a correlation between when Mr. Spencer recommends these things and a massive surge in volume.
Before I personally recruited him to work with me at my old investment research and education firm (The Institute for Individual Investors), Bill had worked at the Federal Reserve, at Bear Sterns, at Morgan Stanley, and at a number of other places populated with folks who run the financial world. You can say he has a following and had one well before getting into financial publishing.
You can see the explosion of volume happened after Bill recommended Live Person to you.
I'm not saying he caused it, but I am saying he clearly had the foresight to be a buyer of this stock before investors started trading $50 million worth of stock per day.
He specifically told you on July 20th:
"It broke out to new highs on heavy volume earlier this month, gaining just over 17% in two weeks. But don't worry -- you're not coming late to this party. We'll likely see more growth ahead."
Bill took the gloves off and started recommending stocks that clearly didn't get the memo that the stock market was in decline.
The stock gained 43.15% while the S&P 500 declined 1.78% and the Russell 2000 small-cap index declined 3.55%.
He's still very bullish on this stock and said he would buy more at this price without batting an eyelash.
Back to the review...
The following Saturday, Bill took a break from sharing his personal favorites and explained why we are in what he called "Small-Cap Summer". For a minute, I thought the guy was getting shy on us.
THE GUY DID IT AGAIN!
Bill Spencer wrote another issue of Small-Cap Saturday, recommending Sapiens International (SPNS) like he was baseball legend, Babe Ruth, pointing to the upper deck home run territory past right field.
Get this: With the stock at $15.82, he said he thinks the company will announce that they beat analysts earnings expectations that following Monday, and that the stock would pop on the news... but that he thinks it would continue to trade higher to the tune of 20%.
The stock gained 21.9% over the next 7 trading days!
And as the stock market fell and fell some more, this stock stood like a stone pillar in Rome.
And the answer to your question is: "Yes, he still likes this stock even at this price level, for the long-term."
Bill has been making ridiculous money on these things. He hasn't even been allowed to trade them within 48 hours before or after recommending them to you, just so that he's never accused of front-running.
I know what you're thinking: "All this guy has are stocks that go up at an annualized rate of 540%? Well, that does not impress me one bit". [read:sarcasm].
But the answer is... WRONG.
The following week Bill recommended a Small-Cap sector ETF. I mean, how many times can I type the same story?
At least this one was recommended only a few days ago. Look at how it gained 6.82% while the S&P 500 and Russell 2000 small-cap index lost -2.62% and -3.27%, respectively.
Don't Even TRY to Snatch Bill Away From ME
I've recently told you that I also own a money management firm, Rowe Wealth Management.
And, guess who got a job offer this morning?
Bill Spencer, who will be advising Rowe Wealth Management on a new small-cap model that will be launched in the next week or two.
First let me reiterate that Rowe Wealth is not owned by and does not own True Market Insiders. True Market Insiders is a financial publishing firm and it's the company that sends you these articles, such as Small-Cap Saturday.
You can just keep on reading the FREE "Small-Cap Saturday" articles, published by True Market Insiders, if you'd like. Trade the ideas if you want and enjoy life as a "do-it-yourself" investor.
But if you'd like to speak with a registered investment advisor from Rowe Wealth Management about having your money managed for you, whether it be in our new small-cap investment model or one of RWM's other investment models, you can sign up for a free consultation at http://rowewealth.com/consultation.
Bill Spencer said that he would advise RWM on managing this small-cap investment model on one condition. He said the only way he would be willing to do this is if we lowered our minimum transfer of assets from $500,000 to $300,000.
This means that even if you have three different accounts to transfer to RWM, and they all add up to a total of $300,000+, we will accept the client. This includes 401ks, IRAs, Pension accounts and any type of liquid asset account.
Bill will continue writing for True Market Insiders. I'm slowly trying to convince him to do more with us and as you've seen, my convincing him to write Small-Cap Saturday's has paid off in droves. His stock picks have been so insanely good that I'm launching an investment model around him.
And I'm asking him to sign a contract that will keep him advising only one money management firm, Rowe Wealth Management.
Thank you SO MUCH, Bill, for sharing your ideas with the True Market Insiders family (and now the RWM family).
I've known you for many years and I've seen what you can do, but like most people, you were a bit shy about publicizing your gift.
Now that you have, other people can benefit from your work.