When Fundamentals Are Strong, Look for This Signal to Buy

You are receiving this as part of your free subscription to Tim Melvin's Max Wealth. To remove your email from this list, [unsubscribe here](. [Tim Melvin's Max Wealth] [Incoming Trade: We're hot on the heels of Tom Gentile's best trading week EVER]( America's #1 Pattern Trader is celebrating his most successful trading day ever. And right now, you have a rare chance to double, triple, or quadruple your money every single day - with the very same strategy behind Tom's record win streak. [Watch this](, and you'll find out how you can come away with a wide-open shot at the latest and greatest from the Alpha-9 radar - [including Monday's brand-new trade](... --------------------------------------------------------------- October 5, 2019 When Fundamentals Are Strong, Look for This Signal to Buy By Tim Melvin Dear Reader, Every day I follow a host of filings at the SEC. Predominately I track 13D filings by activist investors and insider buying. Both types of buyers have proven to be profitable. Getting in on those trades that pass my standards as a solid company with financials that can survive the storm has led to market-beating long-term returns. I always investigate large purchases by CEOs and CFOs of a company. Between the two of them, they know pretty much everything there is to know about a company. So, when one of them writes a six-figure check or larger, it tells me that they're aware of all potential problems, new plans, and products being bought forth and the trends of revenues and profits and think the stock is selling for a lot less than it should be based on the value of the business. They may not be right all the time, but they will be right a lot of the time, and that will make them (and us) a lot of money. This week I ran across large top executive buys in two companies that are in businesses that should prove to be somewhat recession-proof, with steady demand for their products and services no matter what the economy does over the next few years. Your Best Friend's Company Americans spent more than $72 billion on their pets last year. At first, glance that's sounds outrageous until I stop to consider what we spend on Sophie the Wonder Dog and Smokey the Devil Cat. It's not a small amount of money when you count up the food, treats, toys, and vet bills. My daughter has an older dog that has arthritis, and they seem to write large checks regularly. My son adopted an overtly energetic and affectionate dog that had spent the first year in a crate and needed extensive, expensive training. I can find pet spending outrageous when my family and I are pretty much leading the charge. Elanco Animal Health Inc. ([NYSE:ELAN]() sells animal disease prevention products, products that protect pets from worms, ticks, and fleas, and yes, arthritis medicines for them as well. They recently agreed to buy Bayer's veterinary drugs unit on Tuesday in a cash and stock deal valued at $7.6 billion, and the market has not reacted kindly to the deal. Traders didn't care much for the earnings report released in August, either. The stock has fallen about 25% over the last quarter and at least one analyst has downgraded the stock. Elanco CEO Jeffrey Simmons disagrees with their opinion, stepping up and spending more than $2 million to increase his ownership of the company. Another officer of the company also jumped in, paying $260,000 to buy stock in the company for which he works. When the people running the company are buying as the stock declines, history has shown it's a good idea to jump in alongside the insiders. This Company is Looking Good I wasn't shocked in the least bit to find out that in the US alone, somewhere near $24 billion gets spent in cosmetic stores. Globally, the top 6 cosmetics companies sell over $94 billion a year of beauty products annually, and trendline growth is right around 5% a year. Coty Inc. ([NYSE:COTY]() sells some of the best-known brands in the industry all over the world. In July, they announced a sweeping overhaul of its operations and said it would write down about $3 billion of its intangible assets as it looks to turn around its business due to difficulties integrating brands acquired from Procter & Gamble Co. ([NYSE:PG]() in 2016. The market was not a fan, and the stock is down about 13% since the announcement was made. Citigroup ([NYSE:C]() actually issued a rare sell opinion on the stock... But the folks running the company do not agree. CEO Pierres Laubies opened his checkbook and bought $2.4 million worth of stock. The COO bought $1.2 million, and several directors also made sizeable open market purchases of the stock. Insiders already own over $16 million worth of stock, and they continue to be buyers and would seem to have faith that the turnaround will work. That should make them a pile of money in the long run. 64% of the stock is owned by JAB Partners, the private investment firm that also owns Panera, Krispy Kreme, and Keurig Green Mountain. I find it difficult to believe that they will sit idly by and let almost $5 billion get flushed away. To the Max, Tim Melvin P.S., Even small events halfway around the world can have an impact on our economy that we see and feel every day. Whether that's C-Suite officers buying their own stock, a big bank commenting on a recent acquisition, or even as something as small as a worm in the wrong place - those events can send shockwaves through the markets and move prices wildly. On Thursday, October 10, at 1 p.m. (ET), you could be one of the first people to know about a series of these "shockwaves" surging across the globe. At the Global Shockwave Summit, we'll show you exactly what kind of impact these shockwaves could have on the economy, when you can expect them to hit, and how every single ripple could hand you a shot at up to 10 times your money. [Click here to reserve your seat]( and you'll be immediately registered for this first-of-its-kind event. --------------------------------------------------------------- [This is your chance to access our biggest trading secrets (for only $1)]( This [Seven-Day Cash Course]( covers all the essential trading ideas you NEED to know to get the most out of your potential profits in 2019. And not only will I cover the basics, I'll share dozens of [my most lucrative secrets]( to potentially start collecting anywhere from $1,190, $1,313, and even $2,830 in consistent income - without buying a single share of stock up front. [Here's the full story](... --------------------------------------------------------------- You are receiving this e-mail at, {EMAIL}, as a part of your free subscription to Tim Melvin's Max Wealth. Remove your email from this list: [Unsubscribe]( [Manage Your Email Preferences]( To cancel by mail or for any other subscription issues, write us at: Tim Melvin's Max Wealth | Attn: Member Services | 1125 N Charles Street | Baltimore, MD 21201 North America: 888.384.8339; International: 443.353.4519; Fax: 410.622.3050 [Contact Customer Service]( Website: [( © 2019 Tim Melvin's Max Wealth All Rights Reserved. Nothing in this email should be considered personalized financial advice. 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