SEEKINGALPHA.COM writes the following article about GV. How To Find And Execute Global Macro Trades Or Investments
4:15 pm, Tue, Dec. 13, 2016, by Macro Ops
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This leads to a handful of heavy construction companies. The theme here is obvious from the Trump win. We're moving into a period of greater fiscal spending and infrastructure development. One of the value screens brings up Goldfield Corp (NYSEMKT:GV) and the price action looks great.
The weekly chart shows how price rose at the beginning of the year on a large volume after many years of basing (consensus). We ended up taking a position in the Strategic Portfolio around $3 and it's now trading at $4.15; a near 40% move in just a few weeks.
Price action provided a great "go or no-go" entry at $3. If the stock fell below $2.50, then the thesis was wrong, or at the very least the timing was off. This allowed entry with a decent position size that we could pyramid on as price moved in our favor, which is exactly what we've done.
The company has strong top and bottom line growth, a small stock float, and a clean balance sheet. It also specializes in construction on the electricity grid. Our electricity grid in the US is extremely outdated and very vulnerable to attack from foreign nations. Revamping the electricity grid is one of Newt Gingrich's biggest talking points and he's a close friend of Trump's. A $6+ stock is possible in a few months.
We can do this same type of analysis for equities in any market around the world. Now if we're looking at currencies or commodities we'll use a similar framework but some of the inputs (like interest rate differentials and weather patterns) will be different. We'll be writing future articles on all of this.
Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.
