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Written by Briton Ryle
Posted October 6, 2021

Just a few weeks ago, on Monday, September 20, a small group of traders received an important communiqué. It was short and to the point. This is an actual screenshot of the message:

apm pic 9 20 21

Now, I don’t know if you remember September 20. That Monday was a nasty day in the stock market. That was the day the news about the Chinese real estate developer Evergrande really broke…

Evergrande is the biggest real estate developer in China. Or I guess I should say it was the biggest real estate developer in China. The company is currently on the verge of failure…

And with $300-some odd billion in debt that won’t get paid without a bailout from the Chinese government, investors could easily imagine the trickle-down housing crisis effect... 

That’s why the Dow Jones Industrial Average was down as much as 1,100 points during that Monday trading session. 

Obviously, a lot of people were selling. 

Except, of course, for the traders I was telling you about just a minute ago. 

These profit-centric investors coolly waded into the fray and made their moves…

Blood in the Streets, Money in Your Pocket

I could go into detail about the various investment highlights of each stock these traders were buying. And each one is a pretty compelling story. I’m sure you’d be impressed, and you’d probably wanna put some money in each one. 

But ultimately, a good story is just that: a story. And I think we all know there are plenty of stocks out there with great stories that somehow — mysteriously — haven’t led to increased investor interest and a higher stock price. 

Shocking, I know…

So I’m gonna cut the crap and get right to the point

As of about noon today, Ramaco Resources (NASDAQ: METC) is up 36% since Monday, September 20. Penn Virginia (NASDAQ: PVAC) is up 57%. 

And Eurodry (NASDAQ: EDRY) is up... well… 7%. Sigh.

OK, so you can’t nail double-digit gains every time. But it’s still a win. And combine it with 36% and 57% and it’s a story worth sharing…

A Method to the Madness

You ever hear anyone say, “Yeah, that and $2.50 will get you a cup of coffee”? Probably. 

And we all instinctively know what that means: A good story isn’t worth a damn thing if it doesn’t lead to sales revenue...

So I can tell you very simply what separates a great story from a great stock. It’s earnings. 

And what all of the stocks I mentioned to you have in common is that analysts have recently raised their earnings estimates. Dramatically.

Fact is, these three stocks have the biggest earnings revisions out of a pool of around 3,500 stocks.

So, yeah, it’s a pretty big deal. And you can see why they’ve made such big moves in the last few weeks. Well, two of them anyway…

Question is: How do you screen 3,500 stocks to find the latest analyst earnings estimates?

You may have noticed that earnings revisions aren’t headline news. Seems odd, right? Because earnings revisions are probably the single most reliable indicator for stocks that are about to launch...

Could it be that investment banks don’t publicize their earnings revisions in order to give their “preferred clients” first crack at the next moonshots?

This is where I come in. I spent a crapload of my publisher’s money developing and fine-tuning a trading algorithm that methodically scours the stock market for these opportunities.

I call this algorithm and the trading service it powers the Alpha Profit Machine. There is a cap on membership to this exclusive service. But every so often some seats open up. It hasn’t happened in nearly a year, but tomorrow, a few membership spots open up.

As a preferred Wealth Daily reader, you’ll get an invitation in your email tomorrow morning. 

Until next time,

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Briton Ryle

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A 21-year veteran of the newsletter business, Briton Ryle is the editor of The Wealth Advisory income stock newsletter, with a focus on top-quality dividend growth stocks and REITs. Briton also manages the Real Income Trader advisory service, where his readers take regular cash payouts using a low-risk covered call option strategy. He is also the managing editor of the Wealth Daily e-letter. To learn more about Briton, click here.

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