Ultra Growth Special Report -- VTIQ and MRNA Buy Unders
Dear Subscriber,
VTIQ Update: We'll raise the buy under price for VTIQ to $28 as next week is the BIG SHOW for Nikola Motors closing on the merger and raising $500 million in additional capital.
We are raising the VTIQU stock + warrants buy under to $42 and the VTIQW warrant $12 or better.
One share of VectoIQ will translate to one share in the new company, to be called Nikola Motors and trade under the ticker NKLA. One warrant in VectoIQ ticker VTIQW will become one warrant in Nikola NKLA. The warrant gives the holder the right to purchase a share of the underlying security at $11.50 for five years and can be exercised 30 days after the close of the business combination.
But there is a caveat to this: If the stock were to close above $18 for 20 out of 30 days following the business combination as it surely will --Nikola Motors Inc. (NKLA) can redeem the warrants for what essentially amounts to .01.
Key point: IF called for redemption, the warrant holder can allow it to be redeemed (which no one would obviously), sell the warrants on the open market (at close to the spread between $11.50 and the current NKLA price, or exercise the warrant and buy shares.
Warrant holders should be ready to exercise their warrants and buy shares in July at $11.50--THAT is how you buy what we firmly see as the "Next Tesla" (see our research report on our web site) at $11.50!
Moving on.
Ultra Income Buy Under List: Logic Gets You From A to B-Imagination Gets You The Rest of the Way
A few of our All-Access Members have asked me "So yes we have made a TON of money on our various long VTIQ positions and thank you very much. But where are all TR's other secular ultra-growth plays and cyclical semiconductor leaders?"
Part of the answer is "they are coming--we are rebuilding our very concentrated list of 3-5 year secular growth sectors that represent the best-of-the-best secular growth stocks (and a few ETFs) in the post-pandemic America that I have come to identify as the "Next Normal."
The global COVOD pandemic is THE most transformative economic event the world has seen since WWII--and we are in the investing-in-transformative events business! But many of these "New Normal" stocks (can you say Zoom or Teledoc etc.) just got SO ahead of themselves in the 30% market melt-up from the panic bottom on March 23.
The first rule of Transformity investing: We are solely in the business of making YOU money, not owning trophy stocks.
The reason we have beaten the overall 7% a year S&P 500 return by 900%/9X since 2013 and average nearly 70% annual returns since 2013 is:
1) We don't chase stocks. Best current example: Moderna! We identified mRNA via our FDA insiders in March. The stock moved 40% up and down weekly--THAT is a momentum stock. Then it ran from $50 to $95 ( and I wept a little) and tonight is BACK to $55. Moral--NOW once it comes back and finds a real bottom, then we will.
Action to Take: BUY MRNA Under $56 with a $110 target. The reason is simple: the $50 to $95 move in 10 days was the epitome of chasing momentum black box/algorithmic computer bots.
But MRNA does have unique proprietary RNA technology and the early lead in the race to a COVID-19 vaccine. We have a few TR Experts alliance members (TREX) inside the FDA working on COVID-19 vaccines. They ALL report that MRNA is the odds-on leader in the race to a scalable mass vaccine. They also report that with even a 40% take rate on vaccination (which otherwise would be a failure), the NYC testing reveals @ 30% immunity antigen/antibody count in the greater NYC.
Key point: Now IF you add 40% vaccination and 30% immunity, our FDA experts say "That is the herd immunity threshold". Really key point: that means that the approval threshold level for MRNA's vaccine approval is MUCH lower that is common in normal vaccine approvals via the FDA.
I ask you not to share this proprietary research--that is our edge ok?
2) Transformity Investing is all about identifying and buying pre-momentum sectors and stocks (remember AMD at $3? NVDA at $25? MU at $12, OLED at $25, LRCX at $55? etc.etc.). That means we need to leverage our 7,000+ member Transformity Research Experts (TREX) alliance members to get a solid look "around the corner" ahead of emerging secular trends and emerging leading companies inside these unstoppable already emerged secular growth (i.e., 3-5 year) trends (think "Aircraft Carrier moving forward at top speed" --that kind of unstoppable).
3) Most of our favorite New Normal secular growth sectors and stocks came back too far and too fast (example the "Work at Home/New Office" stocks peaking last week.)
But the most important reason we focused on the Ultra Income portfolio rebuilding was the once-in-a-lifetime opportunities in yield and deeply disrupted values in the high yield blown up energy-transportation (mostly natural gas/liquids) companies.
Those of you with us during the 2020 meltdown (and followed our advice to 100% HEDGE Jan 23 and GO TO CASH Feb 25) made about 250% profits from your XOP/QQQ/SPY April Put options and assembled 30% annual yields locked in for life with 100-200% upside too!
Highly profitable investing is still about balancing risk vs. reward--and the risk/reward balance was just SO imbalanced in these names my advice was to load up on the once-a-generations energy-transportation stocks FIRST into the meltdown.
And oh my look at the reward! For one gaudy example, the $100k I personally shoveled into USAC under $5 in the meltdown locked in a 42% annual yield or $42,000 in annual dividends--every year for life that we are still using natural gas! Many of you joined me in buying USAC (based on texts and emails) and locked in $42k of just dividends for (at least me at 62) for the next 30 years.
That is $1.2 million in cash dividends on a $100,000 investment--a 1200% 12X return that is locked in for life!
That one move REALLY beats working!
For perspective, consider this. When I finally claim my Social Security (at the max monthly payment at age 70), my USAC dividend on just a $100k investment will pay me virtually the same as my monthly $3,500 SS payment! And oh Lord--I have paid in WAY more to social security than $100,000 (since I pay both the paycheck tax and the company I own pays has paid the payroll corporate tax for 20 years)!! I literally do NOT want to know what I have paid in (personally and corporately) especially when the Medicare tax was changed to be assessed with no limit to payroll earned per year.
Anyhoo...what I am saying here is the risk-reward of most of the Ultra Income plays are STILL just so compelling. But YES we will start layering in a portfolio of what I have come to call the "Next Normal" digital-first work/mobility/lifestyle stocks because as mentioned this pandemic is THE most transformative event for the world since the internet.
And let's face it--we stockholders and buyers are ALL investing in biotech miracles aka COVID-19 vaccines weath your own MRNA or not!
Second issue--we have reached 2975 on the S&P 500 four times now in the bear market rally and failed--that tells me we need to consolidate the winners here and build a base to launch off from Q2 earnings and forecasts.