HUGE INSIGHTS: Special Edition - Issue #12
Please enjoy this monthly newsletter with our compliments. To get full access to our Idea Generator Lab content, which includes our top stock or ETF idea each week, become a dues-paying member for just $10 a month by clicking here.
Membership Has Its Privileges
You may recall that back on January 30th, we announced that we would make our weekly ALPHA INSIGHTS: Idea Generator Lab publication available to our newsletter subscribers for a small membership fee of just $10/month.
Original offer as published 1/30/22:
https://www.getrevue.co/profile/HUGEINSIGHTS/issues/huge-insights-the-big-picture-issue-6-964537
In short, this has been an overwhelming success, and very well received by our newsletter readers. Based upon the feedback that we regularly receive from our new "dues-paying" members, we are dramatically exceeding expectations. As such, we wanted to update the broader subscriber base on our progress and also provide a free sample of the publication using our latest issue, which was distributed around mid-day today.
Attached is the entire 10-page publication for your review.
ALPHA INSIGHTS: Idea Generator Lab - 8/3/22
e.l.f. Beauty, Inc. (ELF), together with its subsidiaries, provides cosmetic and skin care products under the e.l.f. Cosmetics, e.l.f. Skin, Well People, and Keys Soulcare brand names worldwide. The company offers eye, lip, face, face, paw, and skin care products. It sells its products through national and international retailers and direct-to-consumer channels, which include e-commerce platforms in the United States, and internationally primarily through distributors. The company was founded in 2004 and is based in Oakland, California. They will report their June quarterly results after the close today. https://www.elfcosmetics.com
The shares of ELF posted a new all-time high yesterday and have broken out above chart resistance to resolve a 7-month “Deep Cup” base formation. The bullish inflection above $33, if sustained, projects a measured move to approximately $46 a share [($33 - $20) + $33 = $46]. The daily Point & Figure chart projects an even high potential upside target of $60. An initial stop-loss provision set at $31.50 would establish an attractive 3:1 positive risk skew.
ELF is leading the Personal Products sub-sector, as well as the S&P 500 and S&P 600 indexes. It has seen a sharp acceleration in its RS-Ratio, while RS-Momentum has remained high and accelerating relative to the benchmark over the past five weeks.
From a pure relative strength perspective, the ELF / SPY ratio broke out above chart resistance in June to resolve a structural “Cup & Handle” base formation. Our proprietary Alpha Trend Model turned positive in July after posting a slightly higher low in May.
We are looking to add a position in the SPDR Gold Trust (GLD) to our portfolio should the price action hit our buy stop level at $178.
The aggregate third-party verified performance of this publication is up +13.87% (producing double-digit, positive absolute returns), and has beat the S&P 500 benchmark by +25.22% since its inception date on 11/15/21 as of today.
Our win rate has been lower than usual during this bear market, but our profit factor is > 3:1. It's not how often you're right or wrong that matters. It's how much you make when you're right, and how much you lose when your wrong. The key to success as a trader is risk management. That starts with a trading system that has positive expectancy, coupled with proper position sizing, and then ends with disciplined risk budget and profit target management.
Past performance does not guarantee future results.
Conclusion
ELF reported a beat and raise quarter after the close today.
Press Release:
https://www.barrons.com/articles/e-l-f-s-earnings-stock-51659555028?siteid=yhoof2
Our "dues-paying" members got a heads-up on that potential, which should help boost this stock toward our stated profit target looking out over the next 1-3 months.
Please consider this an invitation to start receiving our top actionable trade ideas delivered each Wednesday afternoon, directly to your e-mail inbox.
To get full access to our ALPHA INSIGHTS: Idea Generator Lab content, which includes our top stock or ETF idea each week, become a dues-paying member for just $10 a month by clicking here
Disclaimer
All information and data contained on this site and in reports, analytics, etc. produced by Jeffrey W. Huge (the “author”) is for informational purposes only. The author makes no representations as to accuracy, completeness, suitability, or validity, of any information. The author will not be liable for any errors, omissions, or any losses, injuries, or damages arising from its display or use. All information is provided AS IS with no warranties, and confers no rights.
External links are often provided within the author’s newsletter for the convenience of the reader. The author will not be responsible for any material that is found at the end of these external links.
The author is NOT registered as a securities broker dealer or investment adviser with either the U.S. Securities and Exchange Commission or with any state securities regulatory authority.
The content of the author’s newsletter should not be considered professional financial investment advice. The ideas and strategies should never be used without first assessing your own personal and financial situation, or without consulting a financial professional. The author may hold positions or other interests in securities mentioned, including positions inconsistent with the views expressed.
The user bears complete responsibility for their own investment research and should seek the advice of a qualified investment professional before making any investment decisions.
Past performance is no guarantee of future results.