More Buyouts are On the Way! — Plus, Your Questions Answered
Are you ready to cash in on a new wave of buyouts?
On Tuesday, I told you howAmazon triggered a 56% surge for AMC Entertainment (AMC) — all thanks to a news report that the two companies were negotiating a buyout.
And while the ink was still drying on my alert to you, shares of Grubhub (GRUB) vaulted 29% higher after news came out that Uber Inc. (UBER) is in talks to take over the food delivery business.
Today’s crazy economy is a perfect environment for corporate buyout deals. And it’s also a perfect environment for investors like us to profit from those buyout deals!
You see, thanks to low interest rates and government stimulus programs, big companies can easily get their hands on billions in cash. And that cash can then be used to buy out entire companies at discount prices!
(After all, with so much uncertainty surrounding the coronavirus crisis, many smaller companies have seen their stock prices trading lower).
Whenever a buyout transaction occurs, investors who already owned the stock getting bought out typically walk away with a windfall overnight gain.
And today, as these deals become more popular, opportunities to cash in on these lucrative buyout transactions are becoming more plentiful!
I may have told you that my team and I have invested in an indicator that helps us zero in on the best and most profitable buyout deals.
I call this tool our “One Day Bonus Indicator” — because it helps our readers lock in profits that can be similar to the bonus payments that Wall Street bankers get from these buyout deals.
As this area of the market heats up, we’ll have a lot more to say about buyout profits. I hope you’re looking forward to this trend picking up momentum!
For now, let’s switch gears and get to some of the questions and feedback you guys have sent in over the last week…
Consider Mining Real Estate!
This week, I enjoyed thinking about a great idea from Peter P.
Great presentation! My gold portfolio includes the holdings you mentioned, but tailored to my needs. My most speculative holding is actual 300 acres of mining claims next to Great Bear Resources.
Thanks for the note Peter!
I’m assuming the presentation you’re mentioning is the video on gold investments I sent to you on Thursday. I suggested three different ways to profit from a rise in gold prices…
- Shares of SPDR Gold Trust (GLD) — which tracks the actual price of gold
- Shares of VanEck Gold Miners (GDX) — which tracks blue chip gold mining companies
- And shares of VanEck Junior Gold Miners (GDXJ) — a basket of speculative gold miners.
I also like your idea of owning real estate that is actually tied to resources like precious metals.
Of course as you mention, this is more speculative. You could buy a piece of land that doesn’t actually have as much underground gold as you expected. Or there may be higher costs in mining the gold — or problems getting the appropriate permits.
So this type of investment takes a little more industry knowledge. Either you have to know a lot about mining real estate, or have a trusted partner who does.
But in the right circumstance, this type of investment could really pay off!
I’m sure several of our readers will really enjoy thinking about this as an option to grow their wealth!
Suggestions for Your 5G Table
Your fellow reader Tony T. from California has an eye for detail and some good suggestions for our 5G index!
You mentioned in multiple write-ups that the index has 74 stocks. I counted the full index list, thrice! It has 73 stocks.
May I make a suggestion? Instead of posting the table as an image, make it a true table with columns for dividend rates and sectors.
I am grateful for your service. Lifetime Income Report and Family Wealth Circle are among my must read subscriptions.
Thanks for the kind words and the great suggestions Tony!
First off, about the 74 (or 73) stocks… Just like I mentioned at the beginning of this email, this is turrning out to be a season for buyout transactions. And our 5G index is participating in this trend!
Overall, I think my team does an excellent job keeping all of our reports and tables current. But of course things are moving quickly with new companies being added to our index when they start particpating in the 5G revolution — and of course some being taken out of the index if they are bought out.
Bottom line, things continue to change and my team is working hard to keep all of our 5G materials current.
Your idea of a table is also a good one!
In some ways, this is a matter of logistics and how much information makes sense to present all at once.
We want to make sure to bring you the best 5G information available. And we also want to format it in a way that we can keep current, and can be easily digested by you and the rest of our income family.
Enjoying Gains as the Market Trades Higher…
It’s always great hearing about your success stories! Daniel M. sent me a heartwarming email this week:
Hi Zach, I hope you and your family are doing well with your health and the economy.
Fortunately, our family is healthy by the grace of God and our financial investments are also healthy thanks to your advice and some diligent research.
I would like to thank you for a couple of recent recommendations you made in the recent issues; Ares Capital Corp. (ARCC) and Wheaton Precious Metals (WPM). Both were very timely and right on the money!
Once the market recovers, we can uncork the champagne and offer a toast to our good luck, health and wise investments.
Cheers Daniel! I’m so happy to hear you did well with these income plays. But even more, I’m glad to hear that you and your family are healthy.
ARCC has been rebounding nicely over the past few weeks. And one of the reasons I especially like this business development corporation (or BDC) right now is because of buyout opportunities!
You see, ARCC has a specialty in helping companies organize buyout transactions. So as more and more of these deals get done, ARCC should be able to lock in profits from this lucrative area of the market.
Of course you guys know that WPM is one of my favorite plays in the gold market. And with gold prices surging higher (and likely to hit $3,000 by the end of the year), WPM’s best days may still be ahead!
Thanks so much for checking in Daniel!
My Goals For This Year…
Finally, it was great to hear from Rick T. who recently moved back to the states after a retirement stint in Costa Rica. Rick writes:
…My goals are, to beef up our retirement savings, to setup a college fund for my two grandchildren. And then, there’s a family we befriended in Costa Rica who is really struggling, both financially and with health issues. I would like to reach the point where I could set up a trust to help them.
Zach, one of the things I like about you has nothing to do with money or investments. I see how you care about people and about what’s going on in the lives of those you touch. And that more than anything has been my joy in working with you. Keep up the good work.
You’re awesome Rick! Thanks for your email and for all the things you shared with me about your family, your dreams, and what inspires you. I wish we could grab a meal together one day and just talk about life.
Who knows? Maybe when the coronavirus crisis has passed, we’ll be able to put together a meetup and I can put some faces with the names I’m hearing from each week.
Thank you all for being part of our family here at The Daily Edge.
I hope you have a wonderful weekend and I look forward to speaking with you next week about the income opportunities I’m seeing both on Wall Street and on Main Street.
Here’s to growing and protecting your wealth!