Dan AmossDan Amoss

Dan Amoss, CFA, tracks aggressive accounting and other red flags that markets miss. He’s a student of the Austrian School of economics and Daily Reckoning fan since 2000. Agora Financial relies on Dan for macro market commentary as well as profitable plays like his 2008 call to readers to buy Lehman Bros. puts, which gained 462% as the stock fell from $45 to $12. And he called American Airlines’ bankruptcy long before the Chapter 11 filing, telling readers to short the stock, which tanked from $6 to just 26 cents.

Formerly, he was investment adviser to one of the top small-cap mutual funds in the country. He grew up on a semi-working small farm that his great-grandfather bought in 1907, learning thrift and the value of hard work through generations. 

This informs his drive to seek truth and expose frauds and promotions that suck in investors. He cut his teeth in finance interviewing management teams in “roadshows” and so knows the kind of BS they sell.

His bottom-up investing style focuses on management strategy, return on capital and the truth (and lies) buried in financial statements.

MIDAS Buy Alert: 200% Upside For The Most Undervalued Gold Project in Latin America

As global economies continue to recover from pandemic conditions, junior gold miners will be attractive acquisitions for more established miners. This is especially true for those with development-stage projects underway. Using the MIDAS system, Jim and Dan recommend an undervalued miner that owns one of the most promising gold development projects in Latin America.

Sell Alert: Sell BJ’s Wholesale Club For A 20% Gain

BJ’s stock price has rallied strongly in recent weeks, capped by a strong earnings report. However, an inflationary trend in cost of goods sold, freight and labor are hitting BJ’s gross margin. We think BJ’s will continue taking market share from higher-cost grocers. But, for the next few quarters, some shareholders may grow concerned about cost pressures. So, let’s take profits now.

Avoid This Common Investing Mistake

The media only promotes one side of a two-sided market. Celebrating higher asset prices presuppose that the audience already owns assets. Is promoting high asset prices really a net benefit to an economy? Reasonable asset prices – set by the transactions of unpressured, unmanipulated buyers and sellers – make for a healthier society and a thriving overall economy.

MIDAS August Portfolio Update

All of our positions that are still rated buy look attractive, especially after the correction in gold. Jim doesn’t expect this gold correction to last much longer, because a variety of factors could emerge to propel the metal into its next significant rally. Look for more macro guidance from Jim in his next Gold Note. For now, Dan gives guidance on all the open positions in your portfolio.

August Portfolio Update

It has been a challenging August thus far for our portfolio. One important factor in deciding how much to pay for options is the volatility premium that gets factored into options prices. Our BFAM trade was set up with this in mind. Also, our Live Nation (LYV) put spread, which still has two months until expiration, is looking good. For now, Dan gives an update on all the open positions currently in the portfolio.

Exit Your Boeing Put Spread

Boeing’s July report was not confidence-inspiring for shareholders. But it hasn’t mattered very much. The stock has drifted slowly higher in the weeks since the report, despite bearish reports from airlines about the pace of recovery in flying. We recommend exiting your BA put spread today while there is still a bid for the $220 puts.

Sell Edgewell Personal Care For An 11% Gain

Edgewell reported fiscal third quarter results and organic sales growth, margins and earnings beat expectations. However, like most other consumer products companies, Edgewell is experiencing cost pressures in many areas of operations. Higher costs in commodities, supply chain, and transportation are margin headwinds. The risk-reward of EPC at today’s price is not as favorable as it was in late March. Let’s take profits.