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August 1, 2010
The Big Picture At ChangeWave Research
By Tobin Smith
And to some people, this is confusing.
I get asked more than occasionally, "How do all your different services fit together -- what's the reason you operate such a fleet of different advisers and service products?"
The answer is at the same time very simple and a little more complex.
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The simple answer is that we are an investment research service whose core strategy is to identify and quantify transformational change at the micro and macro level -- and that's a very big playing field.
The more complex answer is that transformational change comes in many flavors, and we have proven we can make market-trouncing profits from each of them.
Here's what I mean.
In our core ChangeWave Investing service, we cover an entire planet of industries and companies (and even some countries) in the midst of transformational events -- events that rapidly improve the economics (and future value) of some companies and destroy the economics of others.
But some industries undergoing huge transformational changes are simply too specialized for us to handle under one roof. Other transformational change events are very short-lived and not suitable for traditional one-year-and-a-day holding periods.
Take the transformation of the $300 billion drug industry from traditional chemical-based drugs to biotech and generic drugs.
Understanding and analyzing biotechnology is a VERY specialized task, and it's one for which we have been fortunate enough to employ Michael Shulman (a very bright guy -- just ask him!) to head our ChangeWave Biotech Investor service.
I believe all investors should have at least 5%-10% of their investment capital aimed at the billion-dollar breakthroughs in biotechnology/RNA/stem cells for one simple reason: The 78 million U.S. and European baby boomers who are starting to hit their 60s at a rate of one every 3.5 seconds.
We run a separate research and advisory service for this mega ChangeWave because of its size and complexity.
INVESTING VS. TRADING
At the other end of the investing spectrum are what we call "TradeQuakes" -- trigger-like trading events that happen within the stock market itself that are often indications of a rapid transformation in the value of a given stock or traded derivative.
The difference between a fundamental ChangeQuake and a TradeQuake is the cycle time. Our beloved ChangeQuakes (that trigger a powerful new wave of demand or pricing growth in a company or industry) can take YEARS to play out.
Yet in our ChangeWave Options Trader service, Jon Najarian has developed a screening technology that identifies option trading patterns that indicate a sharp move up or down in a stock. These cycles only take days to play out.
Like yesterday, when he sent his subscribers a buy signal for M-Systems (FLSH), where he identified a TradeQuake event in the early morning and sent out a signal saying some good news event was imminent.
How about 8:36 a.m. today when they announced an earnings
upgrade?
Yeah baby!
So here's the point: We aim our research systems where transformational change happens!
We organize our advisory services by "cycle time" -- the amount of time between when we learn some information that others don't know, and when others learn what we know.
That is the essence of what we do for you. More often than not, we know about transformative events and how positive or negative they will impact stock valuations, from single companies to entire industries.
Because most of our clients have pots of money for which they have different investment goals (and also different tax situations), we have built a "suite" of investment services representing very-short to very-long cycle times.
But all of our services are built off of the same research platform -- the world's largest proprietary network of business professional volunteers who help us identify and analyze the transformational economic events we call ChangeQuakes every day of the year. (Not to mention the waves of growth they identify that many times emanate from these trigger events we call ChangeWaves.)
Only the cycle times and magnitude of these transformative events are different. The one thing ALL our services have in common is helping you put your money on the winning side of transformational change, and helping you keep your money away from the losing side.
So you tell me how much money you want to trade (i.e., short-cycle investing without regard to taxes) and how much money you want to invest (i.e., how much money you want to let grow at low capital gains rates), and we have a service to match your goals and objectives.
It's been a great six years, but I know for a fact that the NEXT six years will be even better for your money and for our incredibly generous group of Alliance volunteers.
Toby
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Tobin Smith is the founder of ChangeWave Research, the editor of ChangeWave Investing and ChangeWave Microcap Investor and a contributing market analyst for Fox News Channel. His market commentary can be found twice weekly in the ChangeWave WaveWire and he provides more specific recommendations and advice through his ChangeWave Investing service. Earn windfall profits in the Energy Patch now! Try ChangeWave Investing risk-free and receive up to 4 bonus reports! Click here to learn more.
