News Details – Smallcapnetwork
Two Stocks You Don't Want
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February 2, 2024

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PDT

Good Thursday afternoon, everybody, or for some of you, good Friday morning. Regardless of when you read our newsletter though, we've still got plenty of things to talk about. Today we'll just kick the discussion off with a look at Staffing 360 Solutions (STAF): Did you see the 50% advance STAF had made over the course of the past couple of trading days? Wow. And, Wow. In case you missed, here's the deal - a notable small cap research outfit (besides ours) pegged a target price of $6.00 per share on STAF. And, unlike too many other self-proclaimed small cap stock gurus, Greenridge Global Equity Research actually had a very reasonable, rational explanation for the price target and "Buy" rating. We can't say we're surprised. We've been saying for nearly two years now this little company was in the right place at the right time with the right strategy. Sooner or later, Staffing 360 Solutions was going to have its day in the sun. It just needed a nudge. I can't help but wonder if this is that nudge. Whatever the case, the stock's really moving now. It may well get to $6.00 in the very near future. We were originally expecting it to take a little longer to get there, but the market may have finally put two and two together here, and is making up for lost time. In any case, now that STAF is off and running we can now put the spotlight on the next name we think is going to take off in a similar fashion... National Waste Management Holdings (NWMH). Today's news may have planted a seed. They say a picture is worth a thousand words. I don't disagree. That's why I'm just going to show you the picture of the company's results Bryan Murphy posted at the site today based on the full-year numbers NWMH posted yesterday afternoon. It speaks for itself. That's impressive. No, it's stunning. The obvious question is, how did that happen? Answer: National Waste Management Holdings is not just making acquisitions, but it's making fruitful acquisitions. Here's the thing about the chart and the National Waste Management Holdings backstory you really have to understand... even last quarter's results don't paint the whole picture. The acquisition that spiked the revenue and gross-profit total last quarter wasn't even completed until well after the quarter began, so the chart still understates its full quarterly revenue potential. And, what doesn't show up at all on the chart above is the revenue that will be driven by the deals that have been completed this year, and the ones that will take shape later this year. Some of you may recall this growth-outlook table Waste Management Holdings posted late last year. I was a believer a while back, but now I'm wondering if the revenue projection then were too conservative. Like STAF, NWMH could start to soar with just the right nudge. I've got a feeling it's coming soon. But micro caps and penny stocks just aren't your thing? No sweat. Two Stocks You Don't Want I get something useful out of every daily edition of the Elite Opportunity newsletter, no matter what it is. Sometimes it's a technical look at the market. Other times it's a swing trading idea. I also get a good amount of perspective on the bigger economic picture, which is just as important, since - as John Monroe always makes a point of saying - fundamentals always win in the end. Today's edition of the EO newsletter, however, opened up my eyes in a brand new way. The title speaks for itself... "Two Stocks I would Never Own and One to Own Forever." Curious? Here's the thing - I'm willing to bet all of you own at least one of those three stocks. For one-third of you, that's a good thing. For two-thirds of you though, that could be a bad thing. (Maybe there's overlap too.) John wasn't just trying to spook Elite Opportunity members into reading today's newsletter either; they do that on their own anyway. He was making a legitimate point about how those two stocks, both in the same industry, may never thrive again. His logic was spot-on, too -- there's nothing either of these names can do now to prevent their slow deterioration. At best, they'll only be able to slow down their meltdowns at the hands of the one name John views as a must-have. If you own either one of the two names he questions, you should be scared. To find out what those names are, click here, or cut and paste this link: https://www.smallcapnetwork.com/pages/SCNEO/v1/ No Sweat Yet No need for a lengthy discussion about the market today; a quick look at the chart and a brief discussion will do. Besides, we still have to get to a brief Apple op-ed. As more or less expected, the bears finally started to push back today after the S&P 500 brushed a major resistance level at 2072 on Wednesday. That's where the upper Bollinger band is/was, and pretty much where the peaks from December were made. It was all pretty well scripted. You can also see the VIX was not only unable to break below its floor around 13.3, but actually seems to be pushing up and off it. The good news about today's weakness was that it didn't unfurl on particularly high volume, so there's still a chance the bears might back off before inflicting any major damage. There's also still a ton of support between 1954 and 2025, where many of the S&P 500's key lines are. Until the lowest of those potential support levels breaks, I think we have to give the market the benefit of the doubt. We'll talk more about it when there's more to talk about. Apple, You Can't Have Your Cake and Eat it Too I don't know how many of you have been following the bickering between the FBI and Apple (AAPL), though I don't know how you could miss it - it's been making headlines for a month now. If it doesn't ring a bell though, here's the Q&D explanation: The FBI wants Apple to help it "unlock" an iPhone that may have some important information on it. The iPhone's security features were so good, the FBI couldn't do it on its own, but when it asked Apple to devise a way to crack it, Apple politely pushed back and said it wasn't its job to do the agency's forensics work for it... knowing the Bureau wouldn't likely be able to do it. It didn't take long for it to become a legal matter, with a court ordering Apple to do what the FBI requested the company do. Apple again refused, putting the matter on a path to a higher court. Well, now the FBI is saying "never mind." It figured out how to unlock the iPhone's contents after all, using what it simply said was a method developed by a "private entity." Now Apple, which didn't want to help the FBI with the iPhone, wants to know exactly how the FBI did it so it can shore up the security flaw in the smartphone's software. I'm sympathetic to the FBI's plight. Crooks, criminals, and terrorists have access to the same amazing communication tools you and I have access to, and can use the same security features that benefit the innocent. But, I leaned more towards supporting Apple in this particular cases, just on principle. It's one thing for the FBI to work past what was supposed to be a security wall. It's another to demand a product's manufacturer specially create a means of doing so. Despite what the FBI says, doing so would set a dangerous precedent that could be abused at later time. On the flipside, for the same reason Apple wanted nothing to do with the FBI's hacking, it can't reasonably expect the FBI to solve its proprietary security problems for it now. The same underlying rationale applies that applied weeks ago. That is, it's the FBI's job to perform investigations, even if doing so is difficult. It can't compel a company to do its job for them just because that company initially did its job well. Conversely, it's Apple's job to create and update its own software, and find its own flaws. That's not the FBI's job (or any other law enforcement agency's). In other words, if we don't want the federal government meddling in capitalistic affairs, for-profit corporations can't meddle in government affairs. That's the price of freedom in a capitalistic, citizen-oriented society. It's a price worth paying too, I think. And for what it's worth, no, I don't think the fact that the FBI managed to hack an iPhone is a reason to think the iPhone still isn't one of the most secure digital devices it the world. I can't even imagine the kind of hoop-jumping and expense it must have taken to make it happen. That's just one man's opinion though, subject to change. Feel free to tell us if you disagree.