Editor’s note from Charles Sizemore: for the first time The Banyan Edge, you may not know, but Adam O’Dell managed institutional money before helping everyday Americans in the independent publishing space. The hedge fund he founded, in a nutshell, bought high-quality assets and sold low-quality assets.
Matt Clark, Editor stock power daily, sat down for an interview with Adam to discuss his career before becoming an independent publisher. They are talking about a subsection of “blacklisted” opportunities limited to retail investors.
Learn about these stocks in today’s interview…
But stick with it until the end.you know how you Gain access to a carefully selected pool of 298 ‘hedge fund blacklist’ investments — Adam systematically cuts Top Opportunities Only in the coming weeks.
mat: Adam, thank you so much for sitting down with us today! You mentioned that you’re releasing a brand new free research report, which is something we don’t do very often, so could you tell us a little bit about it?
Adam: Regards Matt. Yes, I am very excited about what we are doing.
As you can see, I think it’s important right now to focus on the small cap sector, especially high quality small caps that are currently trading at attractive prices.
The bear market has beaten these stocks. But historically, quality small caps have dominated after market downturns and recessions. There are several reasons for this, but the biggest one to remember is that small-cap companies are agile. You can more easily maneuver the ship when the tide changes.
I’m not saying the bear market is over. The jury is still out on it. There is a lot of excess capital from the pandemic bubble that this market needs to thrive.
But that also doesn’t mean you should wait and time the bottom.The bottom is only apparent in hindsight. That’s why it’s so important to invest in cheap, high-quality, small-cap stocks. now …even with more volatility ahead.
mat: But how do you know which stocks to target?
Adam: It will be the 5th number.
Specifically $5.
The frankly ridiculous rules of the SEC, which was established over 100 years ago, force major financial institutions to go through a ton of regulation to invest in companies trading at less than $5 a share. not.
Regardless of the quality of a stock, its underlying strength, or its balance sheet.
Anything under $5 they can’t touch it.
In fact, if they were already exposed to this stock before it traded below $5, they coercion to sell it!
And there is our chance.
mat: So if a hedge fund holds a stock at $5.01 and it trades at $4.99 the next day, does that mean it will be forced to sell?
I have to imagine that would cause a lot of selling pressure on the stock. These hedge funds often hold thousands, if not hundreds of thousands of shares at a time.
Adam: Absolutely right, Matt. Ridiculous.but we no For major institutional investors, we can put this odd rule to good use.
mat: Adam, how did you discover this?
Adam: Our readers may not know this, but before I became an independent publisher, I worked in institutional money management. I have seen firsthand all the rules and regulations that hedge funds have to follow.
Don’t get me wrong, these rules are for good reason. For example, my fund was trading on the futures market.that is big money Arena — with leveraged positions that allow you to manage assets worth millions of dollars at a time.
Requires very conservative risk management. Careful position sizing, correlation analysis across portfolios, and stop losses are all necessary for survival.
This experience inspired me to develop the Stock Power Ratings system.
This is a six-factor stock valuation model that scores the majority of stocks in the market from 0 to 100. The higher the score, the more likely that stock will historically outperform the market — by at least 3 to 1 — in the following years and beyond.
I developed this system after seeing firsthand the benefits of a systematic, quantitative approach like the one I used to manage institutional money.
To this end, I have adopted the Stock Power Ratings system and applied it to stocks subject to the SEC’s $5 Rule.
mat: So did you put together the report?
Adam: correct. The research report identifies 298 shares that are currently trading below $5 per share.
Each of them has the potential to exploit this $5 dynamic.
But of course no one expects to buy 298 shares. I don’t hold anywhere near that in my personal account…and no one.
So over the next few weeks, we’ll be using our stock power rating system to narrow these names down to just those that are most likely to make big gains this year.
Normally, in a stock power rating system, you can expect bullish-rated stocks to outperform the market 3 to 1 in the following year. Many stocks are up 100% or more in just six months.
But these stocks … in names below $5 that the major institutions want to trade but can’t trade … I believe they can go much higher.
When all is said and done, I’m going to narrow this list down to just a handful of stocks that I believe will return 500% or more within the next year. Never mind a bear market or a recession.
mat: Adam is very exciting! And I just want to emphasize how great it is to be an independent publisher.
Financial planners, money managers, brokers, etc. cannot share this unique opportunity. Heck, they are not motivated! They just want to take a commission and lock customers into the most boring and underperforming assets available.
I love how much value we can bring to people by breaking down those barriers.
Adam: Couldn’t agree more, Matt. Even better, as part of this process, we teach you exactly how to pick winning stocks. During this bear market, I don’t think you need to learn a more important skill than this.
mat: Adam, thank you for speaking with us today. It was a great conversation.
Adam: Thank you for your time, Matt.
Charles here…
if you want adam Hot $5 Stocks free report, enter your email address on this page. A copy will be emailed to you shortly.
And stay tuned for emails from Adam as we shrink the list in the coming weeks.
about this topic The Banyan Edge and stock power daily Stay tuned as we will be streaming over the next few weeks.
nice to meet you,
