Why This Tiny
Stock Jumped From $4.50 to $82.00 in Six Weeks
How This Company Pulled it Off...
Plus 10 NEW Stocks That Could Profit from
Similar "Triggers" in the Coming Weeks
Why do some stocks take off while
others in the same industry just sit there?
They skyrocket because they have a catalyst. In fact, the right catalyst can trigger a 10-bagger in a hurry. I've seen
In 1999, cell phone stocks were all the rage, and
Qualcomm was the darling of them all. Qualcomm was the leader in
CDMA (Code Division Multiple Access) -- a bandwidth-sharing
technology that was about to become the industry standard.
Virtually every telecom around the globe was slated to migrate
InterDigital, on the other hand, was a tiny patent
holder in the wireless arena, largely ignored by investors. For
the better part of 1999, InterDigital's stock meandered in a
narrow $4.50-$5.50 range. That changed on November 17, 1999.
That was the day Qualcomm filed a report with the SEC disclosing
that it had licensed an essential CDMA patent from InterDigital.
Investors soon realized InterDigital would get royalties on
every cell phone built to the new industry standard.
Talk about catalysts! It triggered +1,264% gains for InterDigital shareholders within six weeks, topping out at an
intra-day high of $82 on December 30th.
A Great Company Isn't Enough
As you can tell
from the example above, the secret to making money in stocks
isn't just finding a great company.
Instead, the secret is finding great companies that are poised
to benefit from a future catalyst.
Catalysts are agents that speed reactions
between substances. It works the same
way in investing.
If you remember your high school chemistry, catalysts
are agents that speed reactions between substances. It works the
same way in investing. A stock catalyst is something that
creates a dramatic impact on a company's fortunes... and triggers
a sudden rush into its stock.
When the right catalyst hits a stock, the Wall Street
sales machine kicks into gear and investors flock to it in
droves, furiously driving up the price.
A bear market may
dampen the effect of a catalyst but it can't kill it.
Catalyst-driven stocks are like coiled springs, itching to
explode as soon as the pressure is released. At the first
sign of a mood shift in a lousy market these are the
first stocks to spring to life. Mark my words: They
rebound the fastest and the highest... like regular stocks
on steroids. During a bull market they rocket even faster, and higher.