"Based on the bearish Power Gauge rating, I think the risk of a negative earnings surprise is too great."
I said those words in 2012... as I was appearing, for the first time, on CNBC's Fast Money Halftime Report.
On the panel next to me was Jon Najarian. I'm guessing you've heard of him...
The NFL-linebacker-turned-high-profile-trader had become a household name in the financial world by then. He would go on to sell his publishing and trading platforms, optionMONSTER and tradeMONSTER, to E-Trade just a few years later... for $750 million.
He was at the peak of his financial career. And although I'd been making the rounds on CNBC, this was the first time we had crossed paths.
The stock we were talking about was online travel agency Priceline (which later changed its name to Booking Holdings). It was one of Jon's bullish trades at the time. And I had just told CNBC viewers that it looked too risky...
The thing is, I didn't know anything about Priceline. But I did have the Power Gauge to guide me. And that was all I needed...
The Power Gauge is the culmination of my life's work. It combines more than 56 years of data-driven market research. And it packages everything I've learned about the markets into actionable information for every stock it processes.
So, I didn't need to know much about Priceline. I simply typed in the ticker and got my report.
Instantaneously, I was able to see that Priceline was set up to release disappointing earnings. The Power Gauge made it clear.
Obviously, the interface for the Power Gauge has gotten more refined over the years. Here's an example of another stock that the Power Gauge turned bearish on recently...
You've probably never heard of Aerojet Rocketdyne (AJRD). But that's not important – because the Power Gauge has.
Each of these sliders is backed by data that can be further explored. And the data shows us that AJRD is in a risky spot for investors right now.
That was the kind of setup I saw when I told Jon Najarian – one of the most famous traders in finance at the time – that Priceline looked like a no-go. The Power Gauge had provided me with the most important (and most relevant) information.
Again, Jon was excited about the stock. But he was a professional. And that means he was willing to re-examine his ideas.
The interview ended with Jon saying, "I'm going to take a harder look, since Marc Chaikin doesn't like it."
That was Monday, August 6, 2012. On Wednesday, the day after Priceline's earnings, the Halftime Report did a highly unusual follow-up.
The host started by asking Jon, "Chaikin spooked you a little bit?"
"He did indeed. And I think a lot of folks followed Mr. Chaikin. Those of us that picked up some cheap out-of-the-money puts well, they worked out like a charm.
"Those puts went from like $1.80 last night to $15, $16," Jon continued. "Again, great call by Marc Chaikin. And thanks, Marc, for helping me out."
In short, the Power Gauge was right. Priceline missed earnings. And Jon listened to it, made a bearish bet, and racked up big profits instead of taking major losses.
Now, one great call is just that... a single great call. But it was only possible because I had the Power Gauge at my side.
The Power Gauge uses the best data available to help individual investors make consistently great calls. And my goal is to share that power with as many investors as I can.
I'll share more on how it works in the coming days.
Good investing,
Marc Chaikin
Editor's note: Last year alone, the Power Gauge pointed to Riot Blockchain before it shot up 10,090% in less than 12 months... Digital Turbine before it shot up 789% in eight months... Overstock.com before it shot up 1,050% in four months... and more. On May 25, we'll air the full story on how it works. And Marc will share the stunning opportunity it's pointing to right now... Get the details here.
Further Reading
As an investor, you need any edge you can get to be successful. And few things are as useful as top-quality data. It's the only way to compete with Wall Street professionals... Read more here: Do You Use the Best Data Available?
Holding onto a falling stock in hopes that it turns around is one of the surest ways to destroy your wealth. Learn more about a real-life example where a simple investment tool could have saved investors from huge losses here: The Simplest Way to Avoid Investment Catastrophe.
Following the professional investors' playbook can easily upgrade your investment game plan. And this strategy is one that the pros use nearly every day...
RISING GOLD PRICES ARE BOOSTING THIS WORLD-CLASS MINING STOCK
Today's stock is soaring as the price of gold climbs...
Lately, investors have been worried about inflation and potentially higher rates from the Federal Reserve. They're turning to safe-haven assets like gold... And that's fantastic news for gold stocks. You see, when the price of gold rises, gold stocks can really take off. Just look at today's company...
Newmont (NEM) is the world's largest gold miner, with more than 94 million gold ounces in reserves. It boasts world-class assets and operates in some of the most favorable mining regions around the globe. When the price of gold rises, like it has recently, that's a major boon for Newmont... because higher gold prices only raise revenues, not fixed mining costs. And you can see that in Newmont's most recent quarter... Sales increased 11% year over year, reaching almost $2.9 billion.
As you can see, NEM is up roughly 70% since the start of 2020. Since then, shares have handily outperformed the price of gold. And they recently hit a fresh all-time high. If gold continues to head higher, Newmont should remain in an uptrend as well...
