Drones, Electric Cars and a Sin Stock with 125% Upside

Greetings Friends,

Last time we talked the market was in peril. Stocks were crashing lower and investors were getting nervous over the extended government shutdown. But sensing it was yet another opportunity to buy on a short-term dip, my recommendation was:

“I’m using dips as a chance to buy. If Washington announces a deal, the market should turn quickly and charge higher. That’s why I am buying into weakness.“—October 5

That turned out to be a great call.

Because just like we have seen so many times in the last few years, almost any weakness in the market is a chance to buy on a dip.

I’ve said it a thousand times and I’ll say it again: the Fed doesn’t want the market to go lower. And the #1 saying on the Street is “Don’t fight the Fed.” Fighting the Fed has has wiped out more than a few traders and investors.

So for the time being, there is no question the multi-year trend higher is well intact. Take a lok at the bullish trend in the S&P 500 that started from the low in March of 2009. Stocks may be a bit over extended after a great 2013, but the long-term trend is definitely still higher.

In fact, stocks are looking as strong as ever right now. We’ve seen some really bullish movement in stocks coming out of this recent dip.

Google ripped higher 14% in one day and busted above $1000. New all-time high. Apple surged to a new 12-month high above $525. In the meantime, analysts are raising price targets. All good things for Apple. Energy has been surging. Baker Hughes jumped 8% in one day on great Q3 results. ConocoPhillips is at a 52-week high.

In spite of all the fear right now, stocks are looking strong.  Earnings are still great. Most valuations look normal if not low. Those are very bullish signals for stocks.

Looking forward, I’m looking for a strong finish to the year. November and December are usually good months for stocks. In fact, the next 6 months, from November to May are the seasonally strongest 6 months of the year for stocks. So if you’ve got cash it makes sense to be looking to buy.

If you’ve got any questions, send me an email: mike@vodickagroup.com

Shifting into our articles, I have some great pieces to share this week. Have you guys heard of sin stocks? Cigarettes, booze……and now, a high-end gentleman’s club. Take a look at Rick’s Cabaret. I see huge upside potential in this stock. The second link is a great stock to cash in on electric cars. And finally, I found my new favorite drone stock. The drone industry is booming, and this is a great way to cash in.

A Small Cap Sin Stock with 125% Upside

“Sin stocks are popular because they benefit from extremely loyal customers. But the problem for growth investors is that most of these companies are fairly mature and well past their years of producing big capital gains. That’s why I am intrigued by a rare small cap in the sin stock field. Not only does this company benefit from extremely loyal customers, it also offers big upside. That has led to a 37% gain in 2013 after a recent 30% jump.”–Michael Vodicka @ Street Authority

Forget Tesla, This is the Best Way to Profit from Electric Cars

“Tesla shareholders got a big scare last week when a video of its Model S EV catching fire went viral across the Internet. That sent Tesla plunging 10%, carving about $3 billion off its market cap.While there’s no question Tesla is a great company, it’s a good example of the risks associated with investing in original equipment manufacturers (OEMs): Consumers are fickle, and bad public relations can be a killer. And that can spell big trouble for shareholders.There’s a better way to cash in on growth in the electric car industry. Unlike OEMs, there is little model-specific risk. And unlike Tesla, trading with a ridiculous valuation, shares of this global leader are trading at a relative discount after a short-term pullback.”–Michael Vodicka @Street Authority

 Profit from the Age of Drones with this Secret Stock

“The rules of modern warfare are changing quickly. Traditional battle lines have been replaced by global terror networks with no boundaries or state affiliations. That’s one of the biggest reasons for the huge growth of the unmanned aerial vehicle (UAV) industry, with U.S. spending jumping to $5 billion from $550 million in just the past 10 years. But looking forward, it’s not just the military that is unlocking the incredible potential of drones. Law enforcement agencies, homeland security and the private sector are all driving an incredible boom in the drone industry that is still in the very early stages. That has the Federal Aviation Administration predicting the global drone market could grow to a staggering $90 billion in less than a decade.–Michael Vodicka @ Street Authority

Have a great week!

Your Investment Partner,
Mike

This report is for entertainment purposes only. Every investor should consult with an investment advisor before making investment decisions. The Vodicka Group, Inc. is not a broker/dealer. We do not receive compensation for mentioning stocks. At various times, the clients, publishers and employees of Vodicka Group, Inc., may buy or sell the securities discussed for purposes of investment or trading.

ABOUT THE AUTHOR

Michael Vodicka

Michael Vodicka is the president and founder of the Vodicka Group Inc., a licensed investment advisor (Series 65) and a financial journalist.