How to Find Hot Stock Opportunities

7/28/2019 How to Find Hot Stock Opportunities

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FusionTradingSystem.com C 2013

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"There is a Quiet Revolution Going on

RightNow that could ADDThousands

to your Trading Account!"

How to Find Hot Stock Opportunities

In Only 5 Minutes Per Day!

Brought to you by Fusion Trading System

http://www.FusionTradingSystem.com


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Disclaimer

No duplication of this material is permitted without the express written permission from the

author.

This report is written for information purposes only and is not construed to be an offer to buy,

nor is it to be construed as a recommendation to buy, hold or sell any security or stock.

While all attempts have been made to verify the information provided in this report, neither theauthor, Barry Boswell, and Fusion Trading System assume any responsibility for errors,

inaccuracies or omissions.

No claims are being made by Barry Boswell and Fusion Trading System that the methods

described herein will result in profits and will not result in losses. Trading stocks involve risk.

All strategies and concepts contained in this manual should not be construed as an offer to buy or

sell any stock or security. The concepts described herein are not guaranteed to produce profits.

Each trader s responsible for his or her own actions.

Neither Barry Boswell or Fusion Trading System is a Registered Investment Advisor and neither

party is acting in any way to influence the purchase of any security.

Past performance may not be indicative of future performance.

Copyright Fusion Trading System 2013


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Background

My name is Barry Boswell and I am the Editor of the Fusion Trading System. I began my tenure

as a financial publisher in April of 2010 as the Editor of the Speed Retirement System. At that

time, I was contracted by a financial publisher to provide the editorial content for the service.

After terminating my contract, in July of 2012, I became the sole operator and Editor of Barry

Boswells Speed Reti rement System.

Barry Boswells Speed Retirement Systemhas now been superseded by the Fusion Trading

System.

The annualized returns my members have achieved since becoming a financial publisherare

2010 68.1%

2011 116.3%

2012 157.9%

2013 150.5% year to date through June 15th

What I have found is that there is a tendency to over complicate investing in the stock market. I

try and share very simple strategies that are easily transferable, so that you do not need a very

long learning curve from implementation phase to earning phase.

This report will share with you a very simple way to find suitable trading candidates.

This does not require a significant time investment. And I am sorry to disappoint you, but this

does not require you to purchase an overpriced piece of trading software. In addition, you will

not have to pore over financial statements in order to find hidden gems.

You will be surprised to learn that this can all be done in a few minutes per day. And with tools

readily available for free on the internet.

My goal is to leave you with a method that you can use and put in action today. My hope is that

you take this information and prosper. And when you do, please email and let me know how it

worked out. I can be contacted at www.FusionTradingSystem.com

I will describe what you are looking for and show examples.

I trust and hope you enjoy this report.


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The Strategy

There are many ways to find stocks to invest in. Some people take a fundamental approach,

which requires reviewing a companys financial statements to find a hidden gem.

Others take a technical approach in which they use an indicator or a combination of indicators to

try and determine when a stock is oversold and is worthy of a buy.

And there are many other arcane methods that people use to try to beat the markets.

What I am going to share with you is a simple way to immediately determine that a company is

financially sound.

And show you how you can easily find a list of these companies for free.

The concept involves investing in companies that have announced a corporate buy back program.

What is a stock buy back program?

Quite simply, it is when a company repurchases their own shares in the open market and

extinguishes those shares, thereby resulting in fewer shares outstanding.

By reducing the outstanding shares, the company will theoretically increase its earnings per

share (EPS), making the company more valuable.

At least that is the theory.

As a simplistic example, lets assume a company has 1,000 shares outstanding and they have an

EPS of $1.

If they go into the market and buy back 200 shares, they now have 800 shares outstanding.

Prior to the buy back, they earned $1,000 ( $1 EPS times 1,000 shares).

Now lets assume they still earn the same $1,000.

The EPS is now $1.25 ($1,000 divided by 800).

So, they have increased their EPS from $1 to $1.25 by buying back those 200 shares.


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If the company traded for a 14 PE before the buy back, then its market value was $14. ($1 EPS

time 14).

After the buyback, it should theoretically trade for $17.50 ( $1.25 times 14).

This simple example demonstrates the theoretical increase in value as a result of the buy back,assuming no change in other factors.

Of course, market valuation is certainly a lot more complex than the example I just shared.

There are many factors that determine market value. This example is just an illustration,

assuming all other factors remain the same.


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What Makes these Companies Worthy of Investing In?

Before I share with you why I like these companies, I do need to point out that there are many

differences of opinion as to whether a company that buys back their shares is a prudent use of a

significant corporate asset. Namely cash.

For this report, I will not argue the merit of whether this is a good idea or not. To me it is really

irrelevant.

What is significant are two factors, which are

1) The company has generated significant surplus cash to be in the financial position to beable to reinvest in their own shares, and,

2) They feel that the best use of their funds and the most prudent investment they can makeis in their own company. In other words, there is no other suitable or better investment

they can make with their own money.

I also need to point out that when a company authorizes a stock buyback program, they are not

obligated to purchase the shares. This simply means that they have set aside the funds to make

those purchases.

They may not invest any money. Or they may not invest the full amount that was authorized.

For example, if their stock price has risen substantially, they may hold off until a time when the

price becomes more attractive.

The reason I like these companies is that you do NOTneed to delve into their financial history or

pore over financial statements to immediately know that if a company has excess cash to be in a

position to buy their stock, they have to be performing quite well.

You know instantly that they have generated excess cash flow above their operating expenses.

I like to keep things simple and this is a very simple way to immediately know that a company is

financially sound.


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Lets look at some examples.

Im going to show you 6 examples of companies that have recently announced a stock buy back

program.

On October 26, 2012, Dana Holding Company (DAN), announced a $250 Million stock buy

back program.

The price of DAN closed at $12.88 that day.

As you can see from the chart, DAN hit $17.80 on March 12, 2013.

This is a 38.2% return for about four and one half months. Annualized, the return is over 100%.

This just assumes you bought the stock on the day of the announcement and held it through

March 12, 2013.


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Example 2:

The second example is CNO Financial Group Inc. (CNO). On December 13, 2012, CNO

announced plans to buy back $300 Million Dollars of their own stock.

CNO is in the insurance industry.

On December 13, 2012, CNO shares closed at $9.22. Lets look at their chart


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Example 3:

The third example is SEI Investment Co. (SEIC).

SEIC announced their buy back program on December 11, 2012. At the end of the day on

December 11th, SEIC closed at $22.45. The amount of stock approved for the buy back was $50

Million Dollars.

Lets see how you would have done had you bought their stock


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Example 4:

The fourth example is OReilly Automotive, Inc. (ORLY). On November 12, 2012, they

announced a buy back in the amount of $500 Million Dollars.

ORLY closed on November 12, 2012 at $88.19.

Lets look at their chart


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Example 5:

Hot Topic Inc. (HOTT) announced a $25,000,000 share buy back on October 31, 2012.

HOTT closed on October 31, 2012 at $8.48.

Lets look at their chart


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Example 6:

Visa Inc. (V) announced a mammoth $1.75 Billion program to buy back their shares on February

6, 2013.

V closed on February 6th at $160.82.

This announcement is slightly over one month ago.

So, lets see how V is doing


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V is down less than 1% in a month. Did you think every deal would make you money?

This is the stock market where you do NOT get any guarantees.

But, would you take 4 out of 5?


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How do You Find These Deals?

It is really quite simple. Just go towww.Rttnews.com.

At the top of the page, click on the link that says Business. Scroll down to the link that says

Corporate Calendars. Then slide over to the link that says Buybacks. Click on the Buyback

link.

Rttnews keeps a daily tally of the companies announcing a stock buy back program.

As I mentioned at the beginning of this report, you do not need a high priced computer software

program to find potential deals.

In the six examples I shared here, all were up rather nicely, with the exception of Visa, which

was only down about 1%.

How would you like to get results like this?

I hope I fulfilled my promise to you that all you need is five minutes per day to find these deals.

I urge you to become a member of the Fusion Trading System right now. This is only one

method of finding potential opportunities.

Thanks for your time and best of success in the markets!

www.FusionTradingSystem.com
http://www.rttnews.com/http://www.rttnews.com/http://www.rttnews.com/http://www.rttnews.com/

How to Find Hot Stock Opportunities

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