Happy Labor Day!

Earn While You Learn! ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ [EARN WHILE YOU LEARN! JOIN OUR FREE LIVE TRADING SESSION!]( Hello investor, Happy Labor Day! The team at TradeAlgo would like to wish you a Happy Labor Day! For today, we’ve got a treat for you. Have you heard about Bob Farrell? He was a lesser-known Wall Street icon who was the “dean of Merrill Lynch Research.” He went to the Ivy League and studied under Ben Graham and David Dodd. He paid attention to the psychology of market players, rather than business cycle indicators. Namely, he loved to go against the consensus: - “My whole experience on the economy has been, if the majority of economists agreed on something, I knew I had to watch for something different,” said Bob Farrell. This was a bull-eye observation, as we saw most economists dismiss inflation as “transitory” in 2021. Farrell wrote “The 10 Rules Of Investing.” The lessons remain timeless. So, we will reproduce them below: Bob Farrell 1. Markets Return to the Mean Over Time. Like a rubber band, markets eventually snap back to the mean when it is stretched upwards or downwards. What would be the “mean”? The saner, long-term valuation levels. 2. Excesses Are Never Permanent. Don’t expect a bull market to last forever. And don’t get too negative during a bear market. Eventually, markets will revert back to the mean. 3. Excess Leads to an Opposite Excess. This is a key observation to keep in mind. When there’s a parabolic in the stock market, it will likely lead to an overcorrection, offering many stocks at bargain prices. 4. Market Corrections Don't Go Sideways. A market correction is volatile. Once it goes down, it goes straight down. So, be decisive at the moment. Do your research ahead of time, and pounce on opportunities as soon as they exist. 5. Public Buys Most at the Top and Least at the Bottom. This is classic Wall Street advice. You know you’ve reached the top when Uber drivers start talking about the stock market. That was the top. Wait until they become completely disinterested (and go negative), then you’ve seen the bottom. 6. Fear and Greed: Stronger Than Long-Term Resolve. Basic human emotion is perhaps the greatest enemy of successful investing. Stay disciplined is the key to profits. It is easier said than done. In the heat of the moment, it is crucial for an investor to stick to the plan, no matter what emotions you feel. 7. Markets: Strong When Broad, Weak When Narrow. This is golden, as well. You want the entire market to move upwards. That’s strength. If the Nasdaq is going up while the S&P 500 is a snoozer, that’s a weak market. 8. Bear Markets Have Three Stages. (1) a sharp sell-off, (2) a “sucker’s rally”, and (3) a final drop to the bottom. Could we just witness a “sucker’s rally”? The time will tell. 9. Be Mindful of Experts and Forecasts. If everybody is telling you to do one thing, then you better do the opposite. Buy when market experts tell you to sell. And sell when they tell you to buy. 10. Bull Markets Are More Fun Than Bear Markets. Keep the resolve to stay in the market even during the bear market. After all, if you bought in a bear market, your next bull market will be far more enjoyable (and profitable)! A Sneaky Play on the Clean Energy Era Today’s Stock Pick: Ameresco, Inc. (AMRC) Clean energy is the future, right? Ameresco offers a sneaky play on the clean energy era because it makes money by offering services to upgrade (and manage) energy assets for its clients. Ameresco operates three divisions and all three involve sustainability: - Energy Efficiency Solutions & Infrastructure Upgrades: Ameresco designs, builds, and constructs distributed energy resources, microgrids, battery storage, and energy savings projects. In fact, Guidehouse Insights ranks the firm alongside Siemens and Schneider Electric as a leading energy service company. - On-Site Technical Expertise: The company offers full maintenance and routine optimization of energy systems as a turnkey solution to clients. - Ameresco Energy Assets: Ameresco owns 661 MWe of operating energy assets. Solar, biogas, battery, and others are the bulk of the company’s assets while non-renewable natural gas was 14% of the assets. (Source: Ameresco) Last year alone, the carbon offsets created by Ameresco’s work adds up to about 41 billion miles of passenger vehicle driving, or the equivalent of the CO2 absorbed by 19 million acres of U.S. forests. (Source: Ameresco) Recent examples of the company’s work include: - Reducing energy costs and greenhouse gas emissions for the City of Memphis by upgrading streetlights, controls and networks. - Providing mission-critical energy infrastructure upgrades and maintenance for the Joint Base McGuire-Dix-Lakehurtst (an Air Force base in New Jersey). For example, it managed core energy infrastructure, solar, BESS, microgrid and more. - Building a renewable natural gas plant in Benson Valley. It will provide clean energy resources to the regional economy in Kentucky. (Source: Ameresco) The company has also worked to convert landfill gas into renewable natural gas energy. Construction projects are often not an one-time project. The on-site technical expertise and the renewable energy assets provide recurring revenue. Even better, the recurring revenue sources are also more profitable. So Ameresco can build a project, then make even more profits maintaining it for the client. 81% of adjusted EBITDA came from recurring lines of business in 2023. (Source: Ameresco) Best of all, it typically costs clients no more money to invest in clean energy projects. The company showed that taking a debt to build projects (which lead to lower-cost energy) will not require clients to allocate more money to it. Once debt is paid off, the client can enjoy savings for many years to come. (Source: Ameresco) Ameresco has a strong revenue visibility with the company accumulating a $2.8 billion backlog of awarded projects. Its contracted project backlog was at $1.7 bilion. (Source: Ameresco) As a result, the company expects to deliver a ~15% revenue CAGR from 2019 to 2024. Adjusted EBITDA is poised to grow even faster at a ~19% CAGR. Bottom Line: Ameresco, Inc. offers a unique spin on renewable energy. In addition to working on traditional sustainability projects like solar and wind energy storage, energy transmission efficiency, and water savings, the company also captures gas from human waste and converts it into renewable natural gas. More importantly, the company has grown profitably over the past five years while accumulating a $3+ billion backlog.   [EARN WHILE YOU LEARN! JOIN OUR FREE LIVE TRADING SESSION!](     © All Rights Reserved, Trade Alliance [Unsubscribe]( | [Manage Preferences](