Why It Pays To Look Beyond The Usual Suspects

Each morning when the market opens, I have a series of news alerts that pop up on my phone screen.

New highs, macro stories, earnings news, and, of course, Covid-19 headlines… you get the idea.

With all of this information at your disposal, sometimes it’s hard to drill down and focus on what really matters when it comes to investing successfully.

That’s why I’d like to turn to my colleague Nathan Slaughter this week.

I’ve been working with Nathan for years. Before joining StreetAuthority, he had a long tenure at AXA/Equitable Advisors, one of the world’s largest financial planning firms. He holds NASD Series 6, 7, 63, & 65 certifications, as well as a degree in Finance/Investment Management from the Sam M. Walton School of Business.

In the time I’ve known him, I’ve seen Nathan pinpoint more stocks that nobody’s ever heard of more than anybody else. In the exchange below, you’ll see why that’s important – and how it could be the key to unlocking huge returns as we hit the home-stretch of 2020…


One thing you always preach to your readers is to look beyond the usual suspects. Why is that so important?

NathanWell, for my High-Yield investing newsletter, it’s pretty simple. Anyone can buy a widely-held stock like Wal-Mart (NYSE: WMT) or ExxonMobil (NYSE: XOM). Sure, they’re solid companies with decent dividend yields. But if you want to capture much bigger payouts, you have to look beyond.

Don’t get me wrong… ExxonMobil is a fine cornerstone or an income portfolio. But if you look a little deeper, you’ll find relatively unknown companies like Magellan Midstream Partners (NYSE: MMP).

MMP is tiny compared to ExxonMobil. But we’re still talking about a $9 billion company. And the firm packs quite a punch in the yield department. It owns a network of energy pipelines and storage facilities that are essential to the nation’s energy infrastructure. The master-limited partnership’s fee-based income supports a 10% payout, five times the market average.

And while the stock has fallen with the rest of the energy sector, it has crushed the sector (and the overall market) over the long haul. (We’re currently sitting on a 378% total return since adding it to our portfolio in 2005.)

The point is, if you limit your universe exclusively to popular blue-chip dividend payers, you’re missing out. And I’m not just talking about superior yields and bigger gains…

I was just about to get to that… We’ve been telling anyone who will listen over the past week about your new video expose: Project Rainmaker. Want to tell us a little bit about it?

Sure thing. It’s something I’m quite proud of because I think it addresses what are in my mind the most urgent questions for investors in the second half of 2020 and beyond:

  1. Why are CEOs at America’s most flush-with-cash companies raising even more cash right now?
  2. What are they going to do with all that money?
  3. How can we beat them to the punch?

To be blunt, I think I know exactly what they’re going to do with a lot of that money. And no, I’m not talking about just more dividends and share buybacks. It’s something far more powerful than that – and it could lead to one of the greatest opportunities I’ve seen in my career.

Amazon (Nasdaq: AMZN) is sitting on $36 billion in cash, equivalents, and liquid short-term securities. Apple (Nasdaq: AAPL) has over $100 billion in cash and marketable securities. And Berkshire Hathaway (NYSE: BRK-A) has a $125 billion cash hoard.

S&P 500 members alone (not counting the thousands outside the index) are estimated to have a $2 trillion cash hoard. For perspective, that’s more than the GDP of Brazil or Russia. It’s also enough idle cash to buy a mid-sized business like Best Buy (NYSE: BBY) 100 times over.

So if readers want to find out exactly they’re going to do with all that cash, they’re going to have to check out the presentation. But you’ve already found some impressive gains…

Absolutely. I’ve never been a big believer in arcane “systems” or “quant” models that flash unmistakable buy signals. There is no substitute for good, old-fashioned research and analysis. I roll up my sleeves and dig deep into the financial statements of every portfolio candidate. But I also believe in working smarter. And that’s what this time-tested screen – Project Rainmaker – is all about.

I have adjusted and fine-tuned the methodology to isolate certain traits and characteristics. And when this screen talks, it pays to listen. Just take a look at the gains we’re sitting on in our current portfolio:

That’s just our active positions. We’ve closed gains of 46.4% in less than three months… 65% in less than two months… 88% in a month… the list goes on.

Can you tell us a little more about Project Rainmaker?

I put each candidate through a series of qualitative and quantitative tests. Many stocks fail to clear even one of these stringent hurdles. I don’t waste my time with them. I’m looking for the rare few that can pass through this gauntlet without being tripped.

Pinpointing potential targets isn’t an exact science. But these criteria can help narrow the field and improve your odds dramatically. So when Project Rainmaker finds one, I get pretty excited. Because history (and mountains of evidence) tells me we’ve got a viable candidate. And that is often the surest path to quick profits.

I’d hate to get into it any further because it’s all really there in the new video. But trust me, you won’t hear about most of these picks in the mainstream media. Some of these picks are small, yes, but a lot of them just aren’t household names… yet.

The best thing our readers can do is simply block out a few minutes and check it out for themselves.

I want to thank Nathan for joining me today. I also want to reiterate what he said…

We know that America’s CEOs are sitting on an unprecedented amount of cash

– They’re going to put it to work, and we think we know exactly what it is…

– It’s going to create once-in-a-generation profit opportunities for investors who are “in the know”.

Nathan and his readers have already made a killing from his Project Rainmaker trades so far. In fact, I’d put them up against any other analyst in the country.

To check out Nathan’s report before it’s taken down, go here now.