I have no idea what’s going to happen in the market today, but perhaps if I spend my time looking into a teaser pitch from a new newsletter I’ll be too busy to obsess over my portfolio and do something dumb during the trade war panic gyrations.
Sound good? Want to join me? Great!
The ad I was asked about was really a blog post in support of a “training webinar” that’s being offered by Dustin Pass, all about how to follow insider trading and use that to make money on stocks. We don’t know what they’re going to try to sell in the webinar, it apparently will be happening later today, but presumably they’ll be selling some kind of software or service.
And the hook, of course, is that they say they’re going to name some “insider buying” stocks in the webinar. They hint at one of these in their blog post, so that’s what we’ll look at today:
“Following tweets from President Trump that threatened higher tariffs on China, the Dow fell almost 500 points on Tuesday….
“The team at Market Trades Daily believe the move is likely temporary and has set up an opportunity to pick up a couple new stocks on the cheap.”
Given the drop we’ve seen in the market so far today, I guess we could look back fondly on last Tuesday’s fall as the “good old days” — the market is down another 2% or so now, though I have no idea where it will be in time it takes this missive to get published and reach your inbox.
(For those overly inclined to panic, I should note that this means the market is now at the abysmal, terrifying, shocking and shirt-rending level it last saw… six weeks ago, when every trader was talking about the inverted yield curve and the disaster that foretold.)
But anyway, what opportunity does Dustin Pass see for us here?
“One of those companies is one of the world’s oldest and most successful biotech companies.
“It specializes in treating neurological diseases, including multiple sclerosis, Alzheimer’s, Parkinson’s and ALS.
“The firm has an extensive drug portfolio that includes a ton of big name brands.
“The company also has something that every investor loves – PROFITS.”
Well, he’s got me there. I do love me some profits.
What else do we learn about this older biotech company?
“It generated $4.66 billion over the prior twelve months on more than $13 billion in sales.”
OK, so that narrows it down a lot… that means it’s one of the biotech companies that we should probably put in the ‘big pharma’ category, the large and established firms who have multiple products and make a lot of money.
He also says they’ve been growing sales and profits for “more than a decade,” so that would narrow it down to maybe half a dozen big companies that you could legitimately call “biotech” firms.
What other clues do we get?
“They have 20 additional drug candidates in the development pipeline with three currently in Phase 3 testing.”
And, apparently, the stock is “near multi-year lows.” So presumably there’s some bad news in there somewhere… lots of pharma companies are trading poorly as regulatory risks heat up, particularly over drug pricing, but not many are “near multi-year lows” at the moment.
Other clues? Well, this is an “insider trading” pitch, so we do hear about those buys that apparently caught Dustin’s attention:
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