November Newsletter
Dear Subscriber,
What a difference a month makes!
Our $3 Bloom Energy (BE) Sell Stop never got hit-
(let's protect BE with trailing $6 sell stop now though!) -now BE is $6 and changeWe sold Chegg at $36 to make a 56% profit from our original entry point $23 in 2018.
AMD and NVDA became #1 and #2 performing stocks on the S&P 500. Waiting for a normal profit-taking 5%+ pullback to double down. We are working on an option hedge this week.
Xilinx has gone nowhere--and now we know why (hint: Huawei has ended the relationship )
XLNX $88 SELL STOP.5) Our SaaS Dumpster dive into CLDR has been a grand slam home run with both the options and the underlying! Let's put a trailing GTC sell top at $9 to keep the equity at least a double!
Here is that latest portfolio update to Dec 2-- with the GTC sell stops (good-till-canceled) and the hedges I'm going to add here, we will lock in our 60% annual growth stock returns for 2019 which will again keep our annual 2013-2019 appreciation over 55% per year including dividends.
In the competing investment newsletter returns we track (we have our ways), Transformity Investor PRO remains the #1 performing newsletter for the last six years. Those of you who held on to your 2X positions in AMD and NVDA and/or made the CLDR option and equity trades are really going to have a great holiday season!
| Position YTD | YTD Growth + Div | Date Sold | Buy Under | Target |
|---|---|---|---|---|
| AMD | 112.00% | $38.00 | $50.00 | |
| AMD | 63.00% | 30-May | ||
| Nvidia (NVDA) | 62.50% | $200.00 | $250.00 | |
| Nvidia | 23.50% | 30-May | ||
| Chegg (CHGG) | 33.79% | Sold $36 Nov 12 | ||
| BE-Bloom Energy | -30.00% | GTC SELL STOP $6 | $5.00 | $12.00 |
| Xilinx (XLNX) | 8.70% | GTC SELL STOP $88 | ||
| Cloudera $7.50 Call Options | 129.50% | $1.74 in/$4.20 out/sold | ||
| Cloudera @$4.50 CLDR Equity | 116.00% | $9 GTC SELL STOP!!! | $8.00 | $12.00 |
| S&P 500 12.2.19 | 25.50% | |||
| TR PRO Growth Stocks 12.2.2019 | 64.87% | 271% S&P 500 Outperformance |
$10k A Month Club Investment Income Club
As I mentioned last month, we are breaking out our $10k a Month Income Club Portfolio into its own new stand-alone advisory service now starting in December. Your Transformity Investing PRO subscription will include that newsletter until your renewal--then they will be separate subscriptions.
The reason for breaking into two newsletters is simple--we are expanding the $10k Income Club into a full 18-24 position portfolio and a whole lot of other goodies. As I explained, this newsletter will be focused on what guys like ME and my twin brother Brian are most interested in:
Preservation of our Hard-Earned Wealth
$10K+ a month of cash money income per $800,000 of investable capital to keep affording our excessive lifestyles
Hedging Portfolio Value with Interest Rate Volatility hedges
Transformity Investor PRO will continue to attempt to keep our >50% annual GROWTH returns and double the size of your risk GROWTH portfolio every couple of years. But since I get the age data on our subscribers (sorry--it comes with our subscriber data analysis service--and never forget if you EVER used an internet browser, use Facebook or Google, EVERYONE knows EVERYTHING about you ok?) we see a majority of our subscribers are men 55-75+ in age and self-directed income investing is becoming (or has become) more and more important to your overall financial health and well being.
All I can say is this: IF you had just $800,000 in our $10k-a-Month investments from the beginning of the year, you would have
Earned about $128,000 in dividend income by the end of December 2019
Have grown the equity value of your $800,000 about $50,000 (with a 5-10% position in our cash reserve PFFA fund) assuming you spent ALL your $128,000 in dividends/distributions and did not reinvest.
Remember--we have two basic investors in our $10k-a-Month Club service: Retirement Income Stream Builders and Retirement Income Stream SPENDERS. My personal plan is to use Social Security when I take it at 70 to pay my friggin taxes on my rediculous taxable investment income and my Medicare Ultra Advantage plan premiums.
That's our goal for you as well--because my friends, your marginal income tax rates are going UP not down. Many states also tax your Social Security (as many of you already know based on your mailing addresses--yea we have those too.) Believe it or not, California does not tax SS nor my adopted home of Arizona. 5-6% of a combined working husband and wife getting maxed out SS payments (deferred to 70) is a lot of money + taxes on 401k/IRA withdrawals (which is a GREAT reason to convert to Roth IRA's while you can in many cases.
Sermon over--here are the numbers for our 2019 $10K-a-Month Income Investing Club. And yes we checked the numbers multiple times--the 41% Newtek total return is really insane.
More insane? Considering MANY of our old subscribers HAVE reinvested in NEWT since we added in 2015 (after splits, special dividend, and dividend increases) literally have a ZERO cost basis on their original $4 stock (which reverse split to $12 on their conversion to a BDC). That, of course, means their dividend yield on their initial investment is infinity aka they got all their initial investment back in dividends and the dividends they earn on their original money is infinity. Note: IF THEY EVER SELL their orignal NEWT position they would be completely nuts!
| $10K-a-Month Income Club | TOTAL RETURN | Date Sold | Buy Under | Target | Yield |
|---|---|---|---|---|---|
| MORL | 22.68% | $14.00 | $16.00 | 21.2% | |
| MORL | 25.68% | 30-May | $14.00 | ||
| BDCL | 27.21% | $14.50 | $16.00 | 15.2% | |
| BDCL | 29.21% | 30-May | |||
| NEWT | 43.25% | $20.00 | $25.00 | 9.1% | |
| NRZ | 25.74% | 30-May | $16.00 | $18.00 | |
| NRZ | 20.56% | 13.0% | |||
| MIC | 18.27% | $42.00 | $55.00 | 9.5% | |
| MIC | 26.17% | 30-May | |||
| SMHB | 10.89% | $17.50 | $22.50 | 21.0% | |
| AMZA | 6.20% | $4.20 | $6.00 | 23.0% | |
| Total Yield + Appreciation | 21.32% | AVG. YIELD | 16.0% | ||
| PFFA Cash Reserve Total Return (Yield + 2019 Appreciation) | 29.10% !!! |
Some Personal Notes
1) Humble bragging. If you read the NY Times opinion section, you may have seen the initial column in my new op-Ed contributor gig. I will have more but the competition is fierce! This one was #1 on the NYTimes website Nov 22 for 12 hours. The article was adapted from my Amazon/WSJ bestselling book FOXOCRACY: Inside the Network's Playbook of Tribal Warfare which dropped October 29. If you are interested in understanding how the dark psychology used by our FNC producers made our "fair and balanced" TV talk shows so addictive to so many millions of Americans, buy a copy and keep me a best-selling author for a while longer, would ya?
2) Our Cyber Monday Super Duper Lifetime Special Offer!!! Wanted you to know that I am talking with a number of the large newsletter publishers (including the one I was a founder of InvestorPlace Media now owned by Stansbury Research) about folding our two newsletters into a larger publisher. My team and I will be always researching, analyzing and making all the portfolio moves, but the production and marketing and customer service requirements are now bigger than our team can handle these days (or frankly want to).
I tell you this because I am going to send you a ONE TIME Lifetime Subscriber offer this week that will allow you to convert a small amount of your 64% appreciation and/or dividends into locking in a lifetime deal for my services.
I strongly encourage you to take me up on the deal. I plan on sticking around for a few more decades at least--but I can't guarantee that the new publisher will not jack up our current rates giving the #1 performing newsletter status (talking with all the leading publishers and comparing our 2013-2019 results to their services is how I know we are #1 ok?).
Whoever we wind up going with, they will have to honor your lifetime subscription to Transformity Investing PRO and the $10k-a-Month Income Investor Club. So you get an amazing bargain and we lock-in subscription income before we transfer the publishing rights to a new publishing partner. Call it a tip or a thank you for our 5-8-and10 bagger stocks since 2013.
$995 for a lifetime subscription to both newsletter services or $595 for either one. We also are including
1) exclusive private access to me and our analysts on a private Slack community
2) special investor video calls and
3) free admission to our upcoming new annual February subscriber conference here in beautiful and warm Scottsdale, Arizona.
Like I said-- it's really a great deal for anyone under 80! And if you go to the big stock market in the sky, your subscription has to go to somebody, ok? May your kids or in-laws could take advantage!
Anyway--look for that ONE TIME offer friends.
Feeling pretty good right now--but we are once again due for a 5-10% correction as once again we have run too far too fast and El Trumpedo is still tariff trigger happy. More on our plan to profit later this week.
Toby