By Kris Sayce, editor, Casey Daily Dispatch
At Casey Research…
We don’t cheer for the market…
And we don’t cheer against the market.
We’re neither perma-bulls nor perma-bears.
Our job is simple (in a way).
It’s to help you make money in the best and safest way possible.
And in our humble opinion, our experts are the best in the world at finding the best opportunities.
It was the determination to do that which led one of our experts, Dave Forest, to what is arguably the greatest investment strategy of our time.
We’ll explain everything below…
If this is your first time reading the Dispatch, welcome. If you’ve been here before, welcome back.
At the Dispatch we have two goals:
To introduce you to the most important investing themes of the day, and
To show you how to profit from them.
We do this by showcasing ideas from our in-house investing experts: Dave Forest and John Pangere. And from the founder of our business, Doug Casey.
Today, we focus on a little-known, less understood, but incredibly profitable investment strategy. One that has resulted in a current gain on one open position of 1,370%.
A gain achieved in just 15 months.
No Hindsight, Just Pure Foresight
This gain and others like it are the direct result of a single investment type – warrants.
It’s a strategy that Dave and his team have championed for more than two years. And it has resulted in a string of impressive gains.
Aside from the current open position with a 1,370% gain, the two best performers were a 4,942% gain from Purple Innovation warrants, and 2,805% from Blink Charging warrants.
Just one of these would be good enough for most investors. But those who directly followed Dave Forest and his team’s advice, had the chance to invest in all three quadruple-digit gainers.
Those who did so could have turned a $500 investment in each (total $1,500), into more than $43,835.
An incredible return.
Bear in mind that these gains came during a period of economic and financial market turmoil the likes of which few had ever seen.
It’s a perfect example that proves the saying, “There’s always a bull market somewhere.”
And there are always opportunities if you have the mindset to look for them… and take advantage when you find them.
Dave’s current biggest open winner is a perfect example of that. It’s up 1,370% in 15 months. With the benefit of hindsight it’s easy to see how great an opportunity it was to buy it in June 2020.
But think back to how things were at the time…
The market had peaked at a record high in February 2020. Then came the COVID-19 pandemic. The market collapsed. Governments forced people to stay at home and businesses to close. Travel basically came to a halt.
Many businesses didn’t know if they would see the other side of the pandemic. In fact, many public companies stopped issuing guidance on future sales and profits, as they just didn’t know what would happen next.
Yet, in June 2020 as the markets recovered, Dave and his team saw a terrific opportunity. They had the foresight to see the chance for a targeted and relatively safe speculation.
We say “relatively safe,” because the speculation Dave had in mind wasn’t a big blue-chip play. It wasn’t a household name. And it wasn’t one of the stocks that many thought would benefit directly from the pandemic – companies such as Amazon (AMZN) and Netflix (NFLX).
In fact, while those two companies had rallied strongly during the early months of the pandemic, the company Dave was looking at was still down 66% from its pre-pandemic high.
But Dave’s team saw an opportunity. And rather than buying the stock, they figured there was an even better way to play what they considered an inevitable rebound.
That meant buying the warrant on that stock instead.
Less Money Down, a Bigger Return
Normally, we don’t reveal the names of open positions in our experts’ recommended portfolios. But this one is so far above the buy-up-to price, we’re happy to reveal it.
The company in question is Custom Truck One Source (CTOS). It’s a specialty equipment rental company. It services the utilities, rail, and telecommunications industries in North America.
Now, Dave could easily have recommended his subscribers buy the stock. If he had done so, they would be more than happy. In just over 15 months, the stock is up 118%. That’s more than a double.
By comparison, the S&P 500 is up 48.4%. The Nasdaq is up 56.4%.
But buying the stock, while providing a nice return, would have meant missing an even better opportunity that was available with the warrant.
Because over that timeframe, rather than “just” doubling, the warrant has gained 1,370%. This is what makes warrants such an exciting opportunity for investors.
But there’s more to it than the pure gains. As we mentioned, at Casey Research, we don’t just look at how much you can make from an investment. We also consider the risks.
Again, that’s the beauty of warrants. Because rather than taking what you would have invested in the stock to invest in the warrant instead… you could use just a fraction of that and still have the chance to make a bigger return.
For instance, let’s say you normally invest $5,000 in stock like Custom Truck One Source (a relatively small company). If you invested that in the company’s shares in June 2020, it would be worth $10,900 today. An even better return.
If you took that same $5,000 and invested it in the warrant, it would be worth $73,500 today. A better return.
But investing in the warrant can be riskier than investing in the stock. They tend to be more volatile because they have built-in leverage – similar to an option.
So instead of investing $5,000 in the warrant, a better strategy could be to invest a fraction of that… say… $1,000. It means you’re putting less of your savings on the line if things don’t play out as you expect, but you still have exposure if it does play out.
In this case, your $1,000 investment turns into $14,700. Not as much as if you’d invested the full amount in the warrant, but more than if you invested directly in the stock… but without putting as much of your savings at risk.
You see how it works?
In our view, warrants are the single best investment opportunity available to investors today. Hands down.
And the best news is that right now, Dave has spotted another opportunity in the market. He believes it could match – or better – the returns his subscribers have achieved in the past two years.
To the extent that he recently fronted a special broadcast where he revealed all the details of the story and how investors can take part in it.
The Profit Power of Warrants
That happened Wednesday this week.
If you missed it, a replay of the event is still available – for now. In the event, Dave shared the power of warrants, what warrants are, how to buy them, and how to multiply your gains from normal stocks.
You can watch the replay right here while it’s still online.
Bottom line, though… Dave says warrants are better, cheaper, and faster than stocks. That’s why the world’s most successful investors love them – even demand them. (Did we mention that billionaire investors are some of the biggest investors in warrants? Dave explains in the special event.)
Go ahead, tune in. Find out what it’s all about. Remember what we showed you above – warrants can multiply the profits compared to regular stocks, in some cases by several times.
More than 10 times in the example we’ve just shown you…
So check it out here. It could be the best investment decision you make this year.
Editor, Casey Daily Dispatch