News Details – Smallcapnetwork
Giggles N Hugs (GIGL) and National Waste Management (NWMH) Subtly Position for Growth
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February 2, 2024

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PDT

Howdy, friends and fellow traders. How was your Tuesday? We've got a few things to get through today, but first and foremost I want to go ahead and let you know we're finally ready to pass along that LED lighting name we first promised you in last Friday's edition of the newsletter. That alert will be coming in the morning right around the time the market opens at 9:30 am EST. You won't want to miss it. Like we said last week, LED lighting is one of those overlooked opportunities the market is quietly, finally ready for, even though few have noticed. In the meantime, a couple of our Featured Stocks posted some interesting news of their own today. In no particular order... Most of you are going to be familiar with Giggles N Hugs (GIGL) by now, so we won't dwell on what it is or why you may want to take a closer, diligent look. We'll get straight to the point and let you know CEO Joey Parsi was interviewed today, and a recording of that interview can be heard using the link Bryan Murphy provided when he listened in and gave his thoughts about what Parsi had to say. What was really interesting was something we haven't talked about much with GIGL... its recently-announced fund-raising efforts fall under the SEC's 506(c) rules, which make it much easier to raise capital simply because the company can advertise the fact that is raising money. Prior to the advent of this relatively new rule, raising capital was inherently tough because small companies simply couldn't say much too many people in a meaningful way. Now they can. In any case, Murphy gives us a little more color about the 506(c) rule here, but perhaps more important, he sheds a little more light on 2016's expansion plans and explains why mall operators could make it easy for the company to grow rapidly. The other news came from National Waste Management Holdings (NWMH). James Brumley gave us the lowdown, articulating why the upgrade of the existing Hernando, Florida facility means so much more than just an upgrade. It's a sign that NWMH is preparing to win more business. It may also serve as the model for similar upgrades and overhauls at its other properties. In the bigger picture, it all points to continued growth... organic and by acquisition. Now, about this market... On Hold It's 0% shocking the market bounced today. Heck, it's 0% shocking where the market bounced today. For the third day in a row, the S&P 500 made a floor right around 1877. Conversely, the high for the past three days has been right at 1908. While the S&P 500 is trapped in a better defined a range than most other indices, all the other indices are still telling the same basic story. The holdup? If you didn't know already, tomorrow is a decision day for the Fed regarding interest rates. Namely, the Fed has a regularly-scheduled opportunity to raise interest rates on Wednesday... if it wants to. While it vaguely suggested it was looking to hike rates three or four times this year when it ramped them up in December (for the first time in years), this may not be the time to underscore that message. Stocks are still down about 10% from their late-2015 highs, and you get the feeling investors are just one bad-news day away from throwing in the proverbial towel. That said, I think John Monroe over at the Elite Opportunity newsletter was right in that regard when he said today: "Maybe a much more slowing economy? Maybe a wave of massive debt defaults? A potential credit crisis again, albeit one of a different form? The markets and our economy throughout history have proven just about anything is possible, but when you look at what's going on abroad, as well as what's going on here at home, I just don't think we're on the verge of a major market crash. If anything, we'll simply move lower from current levels, which will do nothing more than offer some deep value discounts on many of our favorite names." In other words, should traders through when that towel (so to speak), it will be a capitulatory buying opportunity. On the other hand, any sizable dip is still miserable to live through. That's why we're still largely on the fence... as most other investors are, judging from the fact that the S&P 500 is getting comfortable going nowhere. I'll just add this - should the ceiling at 1908 fail to hold the bulls back, that's apt to be trade-worthy. Conversely, should the floor at 1876 fail to hold the bears back, that's also trade-worthy. Almost needless to say, this situation makes tomorrow's response to the Fed's decision a huge one for stocks. You'll also notice that the VIX edged ever so slightly below its 20-day moving average line. An omen? We'll see. Just because we've been following it for a while now, I'll go ahead and include a weekly chart of the NASDAQ composite for you. Our take is still the same. That is, last week's hammer-shaped reversal effort is still intact and opens the door to a significant bullish thrust. We just need to move above 4591 to open the floodgates. Again, Janet Yellen holds the keys to shaking the market out of this rut. Deciding to not make a decision just yet, I'll leave you with this final thought from John Monroe today: "With that being said, I think it goes without saying the lower and lower these markets want to go, the more excited long-term investors should really get, not the opposite." I think he's exactly right, meaning the media is making a mountain out of this molehill, not appreciating the fact that ebbs and flows are a natural occurrence. There was a point in time not that long ago this 12% percent pullback would have just been a normal market correction within a long-term bull market, and within a long-term phase of economic expansion. I don't think this time around is any different, despite the fear-mongering chatter. If you'd like to get more and better perspective like this, the Elite Opportunity newsletter serves it up every day, keeping investors grounded when they need to be the most grounded. Here's how to get it.