The strangest thing about it is that they didn't talk about it beforehand. Yet, out of nearly 20,000 publicly-traded stocks in the United States, they both managed to pick the same one for completely different reasons, and they were both freakishly right. The stock they picked jumped 27% today.
The stock in question is SunOpta (STKL). The two individuals in question are James Brumley and John Monroe. The former is the editor and resident stock-picker for the new Under the Radar Movers newsletter, and the latter is dishing out daily trading ideas to Black Ops Trader subscribers. I did a double-take yesterday when I saw the ticker 'STKL' in the subject lines of not one but two different e-mails, thinking there was no way they independently came up with the same trading idea on the same day. But they did. And it was a good one.
The nearby chart tells the tale. After a harrowing but undeserved selloff over the course of May, SunOpta finally started to recover on Wednesday. John and James noticed on Thursday. Good thing for subscribers they did.
If you missed the STKL trade, don't sweat it. There's plenty more where that came from. In fact, John and James are so giddy with excitement over Friday's big score they both agreed to let me go ahead and tell you there's a new pick coming on Tuesday morning (remember, Monday is holiday) that could be just as good, if not better. And, this one is going to be dished out to all readers of the Small Cap Network newsletter -- the one you're reading right now -- rather than reserved just for premium newsletter members.
More on that in a second. What I first want to do is go back and insert the comments made to Black Ops Trader subscribers as well as Under the Radar Movers members about STKL. Normally I wouldn't be giving away so much detailed information just one day after a trade was suggested, but with the 27% move already in the rear-view mirror, the prime time to get in has passed. It'll be ok.
John explained to Black Ops folks:
"... based on what we're seeing both technically and fundamentally, the stock could be setting itself up for another nice run sooner, rather than later. There's even a very real possibility a larger player could come along and snap up SunOpta for all that it owns and operates. Why? Because the stock is currently trading well below its intrinsic book value. Meaning, the sum of its parts are worth more than what investors are paying for the stock right now...
...Technically, we've included two charts of STKL below, a daily chart and a monthly chart for a few very important reasons. First, the monthly chart clearly reflects the stock recently broke below its early 2012 low, just before it went on a three year blistering tear to the upside. Following that major long-term rally, however, like it has on so many prior occasions, STKL has once again found itself down around ridiculously low levels...
...We see this type of activity often, whereby a stock or an ETF takes out a key long-term low, and then rallies for several weeks, and sometimes even months. Whether or not that will be the case remains to be seen, but when you look at the daily chart of STKL here, you can see the stock has finally woken up after being bludgeoned for quite some time."
And here's what James had to say:
"... take a look at SunOpta (STKL). This is a subtle one, but powerful. The May selloff through Tuesday was overdone, and on Wednesday the bulls had finally had enough. They plowed back in on huge volume, and followed through today on even bigger volume. And yet there's still a ton of room to keep rebounding.
While we have no problem letting a trade turn into an investment if the situation is right, there's not much chance of that happening here. There's some resistance for STKL in the $4's, and the 100-day moving average line (gray) is a proven technical ceiling."
We'd call them freaks for coming up with the same great idea for different reasons, but they basically hit the nail on the head with a name hardly anyone was thinking about. Again, SunOpta jumped 27% today,
The thing is, the Black Ops Trader and Under the Radar Movers have been on fire for the better part of the whole week, finding lots of great trading ideas. Now the guys are ready to give a little bit back -- call it goodwill, karma, or whatever -- and send a new idea to everyone come Tuesday morning.
We obviously can't give you the ticker yet; there are a few finishing touches we want to put on the stock's research report anyway. But, this should whet your appetite - this company is on pace to grow its top line by 86% this year, which could lead to a 1067% increase in its net income. All it will have to do to reach those lofty levels is keep doing what it's already been doing. The company has more than proven its product is marketable, and its recent plans for revenue growth represent something of an evolution of that product and the business model.
And there's a good chance you've already seen "the product." You may have even purchased it.
Oh, and here's the chart of late. This thing is rolling like gangbusters, and the recent dip is a heck of an entry opportunity. That window may not open again for a while, and not anywhere near current levels.
Tuesday morning is the day. Check out the website or check your inbox right at the open. This trading idea could end up being even more fun than STKL has been.