Investing


In this section you will find Fundamental Trends investment ideas, research, model portfolios 401(k) Alerts. Fundamental Trends offers investment ideas in three categories: Stocks, ETFs, Options & 401(k) Asset Allocation.

What truly makes this investment letter different is our approach to buying and selling which is managed for risk differently than most others. We make extensive use of “limit orders” and cash-secured put option selling to scale into positions and secure low costs basis.

Target Trades November 2017

This month I am introducing a new regular article to help keep our investing tactical and organized. Below, you will find a summary of my short and intermediate term outlook, as well as, a chart of all the stocks that are buys or close to being buys. The chart is complete with buy orders, notes and option trades for managing risk, generating income or leveraging for asymmetric upside gains. 

Buy The Uncertainty In SunPower For A Potential 10 Bagger

SunPower (SPWR) is on my “Very Short List” of about 100 stocks that can lead in the next decade. It is now a holding of mine, as the October $7 puts I sold about a month ago were assigned to me on Friday. I am very happy with a net cost a shade under $7 per share. I’d be happy with any price in the $7s and might add more soon. Read […]

Buy the Blowoff Bottom in this Grocer

SuperValue is the nation’s largest wholesale grocer and also a retailer. The stock has been beaten down on pessimism in the space and the impending arrival of the Amazon and Whole Foods tie-up. Several grocers are dramatically undervalued, SuperValue is one of them. There is likely at least one and possible two strategic transactions coming that will unlock that value.

Very Short List Q4 2017

Our “Very Short List” is composed of approximately 100 extensively researched companies that are poised lead over the next several The Very Short List list includes the: Fundamental Leaders group of strongly profitable companies trading at value prices often paying a dividend or engaging in buybacks. Emerging Leaders which have catalysts that could lead to explosive growth. This group also includes highly cyclical stocks, such as energy stocks.  I also have denoted the companies that are […]

Quick Thoughts On The New And Improved “Dividend 30” Stocks

As you probably read last month, I got beat up pretty badly for saying to sell some of folks favorite dividend stocks. On August 4th, in “3 Supposedly Safe Dividend Stocks to Dump Now” I said to sell Coca Cola (KO), Procter & Gamble (PG) and Verizon (VZ). Since then, all of the stocks are about even, plus or minus a few percent. That’s often the case with overvalued stocks […]

Quick Thoughts: Introducing The Dividend Dozen

When I pick dividend stocks, I am looking for companies that can grow those dividends over time. That means that somehow the company has to be able to see increasing revenues, without taking on massive debt, over time. Below are twelve companies that fit the bill.  Make sure you read my article: 4 Steps To Better Dividend Growth Investing

Buying 8point3 Energy (CAFD)

8point3 Energy (CAFD) [the symbol cutely refers to “Cash Available For Distribution”] is on the opposite side of a merger. It is essentially a solar utility that holds completed projects, collects the income and pays out a dividend.

Buying CenturyLink Back (CTL)

CenturyLink (CTL) and Level 3 (LVLT) appear to have cleared all of their merger hurdles and that’s good. Now that CenturyLink shares have sunk on fears about the customer complaint lawsuits, I am very much interested in it again. The huge dividend is probably secure, but if not, will still be pretty darn good.

Selling Puts On Potash Corp (POT)

Potash Corp (POT) is merging with Agrium (AGU) imminently. This will create an awesome vertical structure for the new company as Agrium has a large retail network for the combined company’s products. The wholesale distribution of Agrium has the potential to really charge sales of the combined product line.

Buying Potash Corp (POT)

Potash Corp (POT) is merging with Agrium (AGU) imminently. This will create an awesome vertical structure for the new company as Agrium has a large retail network for the combined company’s products. The wholesale distribution of Agrium has the potential to really charge sales of the combined product line.

Adding Store Capital to VSL

I am stealing an idea from another Seeking Alpha author who follows REITs almost exclusively. The stock is Store Capital (STOR) which Warren Buffett just bought a stake in. I am going to refer you to a pair of pieces on Seeking Alpha to get to know the company.

Adding Control4 to Very Short List

The “Internet of Things,” a phrase I hated a few years ago because it sounded a little too clever and pithy to me, is quickly becoming one of my favorites. The connected world, for any trepidation I might have about it personally, is becoming a foregone conclusion.

Very Short List: Q3 2017

Our “Very Short List” is composed of 50 to 60 extensively researched companies that are poised to double, triple or more in price the next few years. The Very Short List list includes the more conservative Fundamental Leaders group of strongly profitable companies trading at value prices often paying a dividend and the Emerging Leaders which have catalysts that could lead to explosive growth. Before you look at the companies on the list, read this […]

Selling CenturyLink (CTL) on Marketing Scandal

While I still very much like the CenturyLink and Level 3 merger, I am bothered by the complaint against the company regarding sales practices.  I do not think there will be permanent damage to the company, however, I am not interested in taking punishment from the market while things shake out. The stock certainly has the potential to drop into the lower $20s which would represent over a 10% loss […]

Buying more XES

The oil markets are getting clobbered again because apparently the U.S. has a lot of cheap and easy to get to oil forever, there’s no reason for a risk premium on oil for say a bigger war in the Middle East and because we’ll all be driving electric cars next year. 

Selling Cash-secured Puts on Exact Sciences

In my recent Seeking Alpha article I said this: “This time, the only potential downside I see is a secondary offering to raise another quarter billion dollars or so. I expect that soon. However, it will only temporarily hit share prices as people scream, stomp their feet, panic, and sell the dip.”   https://seekingalpha.com/article/4074040-citron-wrong-exact-sciences