Here’s Why to Ignore Steve Martin’s Stock Tips

Cardboard? [Logo]( Here's Why to Ignore Steve Martin’s Stock Tips Dear Reader, Hi…Big Bill here. Thanks for stopping by. I love comedy. (I find it funny.) Growing up, Steve Martin was my favorite. The man is a scream, although I'd caution against taking stock tips from him. Bill Spencer Editor-In-Chief True Market Insiders "I bought cardboard when it was 14 cents a ton. And now it's up to 16 cents… and I bought three tons of it, so that's… Let's see... Well, you do the math...." If you haven't read his short masterpiece Pure Drivel, you're missing some insanely funny one-page comedic gems. For example, here's his send up of Big Pharma. It goes on like, symptom after glorious mock-symptom, in a pitch-perfect parody of those annoying (and terrifying) drug disclaimers that follow every medication advertised anywhere. That article popped into my head while I was researching the Drugs sector this past Saturday. And also digging into the $1 billion market cap company I'm about to prescribe. The Drugs industry group is the pink of health right now, and it's ranked #5 (out of 45 sectors) on our Sector Relative Strength Matrix, one of the tools we give you when you join Sector Prophets Pro. As the name suggests, this tool tells us which groups are strong relative to others. In other words, it tells us what to invest in. To see when we should invest, we turn to our "breadth" indicators. They show us whether the bears (Supply) or the bulls (Demand) have the upper hand at any given time. We buy when the bulls are in charge and sell when the bears take over. Here's a key breadth indicator -- the bullish percent index (BPI) -- for the Drugs sector. The chart is in a column of X's (highlighted in yellow). This means Demand controls the sector over the short term. And notice how the current X-column is higher than the one that came before it. This means Demand controls the sector over the longer term as well. Bottom line, now is a good time to consider buying stocks in this group. The sector is also outperforming the general market. We can see that on our Relative Strength (RS) chart which compares the performance of the drugs sector with the Equally-Weighted S&P 500. It too is in a column of X's and in an X-column that's higher than the previous one. This is a group that's out gunning the stock market on both a short-term and long-term relative basis. What should we have our eyes on in this sector? ANI Pharmaceuticals, Inc. (ANIP), is a biopharmaceutical company out of Baudette, Minnesota, and a member of the Drugs industry group. The company is in the business of saving lives and making lives better. It develops, manufactures, and markets branded and generic prescription pharmaceuticals in the United States and Canada. It markets its products using retail pharmacy chains, wholesalers, and mail order pharmacies. This company has a lot to recommend it to investors, such as… - A Diverse Product Portfolio: ANI Pharmaceuticals offers a wide range of products across multiple therapeutic areas, which helps diversify away risk while tapping into multiple market segments. - Integrated Manufacturing Capabilities: The company owns and operates multiple manufacturing facilities, giving it control over production, quality assurance, and its all-important supply chain – factors that can be critical in the pharmaceutical industry. - A Strong R&D Focus: ANI Pharmaceuticals has invested in research and development, which can lead to the introduction of new products or improved formulations, keeping the company competitive in the market. - A Savvy Eye for Strategic Acquisitions: Over the years, the company has strategically acquired other entities or product rights to expand its product line, further solidifying its market presence. - A Commitment to Established Relationships: ANI Pharmaceuticals has been in the market many years and has developed strong relationships with distributors, healthcare providers, and other stakeholders. This makes for smooth launches and efficient product sales.     When we plug ANIP into the Sector Prophets Portfolio Builder tool, we can easily see that its technical attributes are strong. This is an "all blue" stock. It's in a hot sector (Sector RS is Strong)... The stock itself is outperforming the other stocks in the Drugs space (Peer RS is Strong)... And the stock is outperforming the wider stock market (Market RS is also Strong). All of this explains why the number of funds buying shares of ANIP has grown 16.5% in one year, from 303 funds to 352. And why, over the past four quarters, the giant institutions have accumulated (bought) 2.3x more of ANIP than they've distributed (sold) – $79 million versus $30 million. Finally, it explains why the company has exceeded earnings expectations for three consecutive quarters. ANI's ace in the hole is something called Cortrophin® Gel, a highly purified form of adrenocorticotropic hormone (ACTH). (ACTH is a hormone that causes adrenal glands to release corticosteroids. It's used to treat things like rheumatoid ailments, skin disorders, allergies, and certain eye conditions. The company reports second quarter earnings on Wednesday (August 9) before the market opens. It last reported on May 9th and enjoyed a record quarter. Year-over-year revenue was up 66%, while quarter-to-quarter revenue gained 13%. I've added blue horizontal Fibonacci Retracement lines to the one-year price chart below. The stock gained 45% from April 27 thru June 30 before pulling back ("retracing") and then resuming its upward climb. The purple arrow shows where the stock is meeting resistance at the previous high. If it breaks above that, it could mount a charge to new highs. In the following one-year chart I've swapped the Fibonacci Retracements with Fibonacci Extensions drawn from the April low to the June high and down to the retracement that found support at the blue 50-day moving average line at $50.24. Fibo Extensions are useful for finding profit targets. We're looking for a move to the 161.8% blue Fibo line – a gain of 27%. Not too shabby. The next level above that is at $79.33 (highlighted in yellow). That represents a return of 47.5%. If I end by saying something corny, such as "... and that's just what the doctor ordered," you have my permission to come out to Queens and egg my house. So I'll just end with… Stay cool in the heat. Thank you for reading, and I'll see you next week.   [True Trader’s Sunday School #13 - How to “X-Ray” the Stock Market]( [Why Fed Rate Hikes Don’t Bother Me]( [Let’s Fight Risk and Uncertainty With Gold](     [YouTube]( [Facebook]( [Twitter]( [Instagram]( [LinkedIn]( DISCLAIMER ©2023 by True Market Insiders, LLC, Protected by copyright laws of the United States and international treaties. This Newsletter may only be used pursuant to the subscription agreement and any reproduction, copying, or redistribution (electronic or otherwise, including on the world wide web), in whole or in part, is strictly prohibited without the express written permission of: True Market Insiders, 7901 4th St. N STE 6113 St. Petersburg, FL 33702. The information contained herein has been prepared without regard to any particular investor's investment objectives, financial situation, and needs. 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