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Louis Navellier | Hello Investor, Louis Navellier here again. In yesterday's letter, I said I would write and explain more about my unique approach to the markets and the eight fundamentals factors I use to pinpoint the next big stock winners. This unique strategy can give you a huge edge in the markets… and turbocharge your investment results. And although this strategy puts one of the most powerful, most advanced technologies on Earth to work for you, it’s rooted in common sense. To show you the power of this strategy, let me tell you quick story… What a Mega Stock Market Winner Looks Like In early 2002, as America was reeling from the dot.com stock crash, as the New England Patriots enjoyed their first Super Bowl win, and as A Beautiful Mind won the Best Picture Oscar, an unusual looking can began appearing in American stores… The can contained a product called “Monster Energy.” 
Monster Energy is sold as an energy-boosting drink, full of sugar, caffeine, and other stimulants. But in the early 2000s, Monster Energy became a phenomenon with 20 and 30 year olds. For many young people, energy drinks like Monster became “their coffee” and “their Coca-Cola.” Thanks to this huge shift in consumer tastes, the maker of Monster Energy saw its revenue skyrocket from $50 million in 2003 to $1.7 billion in 2011, a 34-fold increase. The iron law of the stock market says that if a company massively increases its sales and overall earnings growth, its stock price will massively grow as well. So it’s no wonder the maker of Monster Energy — a small firm named Hansen Natural - saw its shares skyrocket 1,125% from 2004 to 2007. I’m more familiar with the Monster Energy story than most. Readers of my newsletter were on board the stock and took the ride of their lives. From my original buy recommendation of the stock on Jan. 1, 2004 to June 1, 2007, we made an incredible 1,225%. That kind of gain changes lives. It buys lake houses, Ferraris, and a dozen vacations. It turns a $15,000 investment into $183,750… a $35,000 investment into $428,750… and a $50,000 investment into $612,500. Every decade, no matter what is happening with the economy or politics, dozens of stocks climb by more than 1,000%. You know these “super performance” stocks because they are America’s greatest corporate success stories and are now household names. The popular coffee chain, Starbucks, for example gained 1,807% during the 1990s. The now-famous semiconductor maker Intel gained 6,556% during the same time. During the 1980s, fast-growing retail chain Wal-Mart gained 4,185%. Another fast-growing retail chain, The Gap, gained 5,539%. As you can see, “super-performance stocks” come in many forms. Sometimes they are innovative restaurant chains with great new concepts. Sometimes they are high-tech firms that change the world through their innovations. Sometimes they are fast-growing new retail chains. The business models these winners employ have their differences, but the cash profits reaped by shareholders are the same. The profit earned from a stock that climbs 500%… 1,000%… even 1,500% can add an extra $10,000… $100,000… even $1,000,000 to your net worth. The allure of making huge profits has drawn people to the stock market for over a century. And although many people search for stocks with 1,000%-plus potential, few find them. The reason for this failure is simple. Instead of using a proven, repeatable strategy for pinpointing the world’s best growth stocks, most people take the amateur’s approach. They use gut instincts and follow “hot tips” from other amateur players. They employ different strategies randomly. They flutter from strategy to strategy like butterflies. They end up with crudely constructed, messy portfolios. And their results are often poor to mediocre So, I'm going to show you how to succeed where others fail. There is a proven method for finding these "super performance stocks" and I'm going to tell you how it works… and how it keeps working no matter what the market is doing. I've always been a numbers and data junkie… and I love the stock market. So, many years ago, I conducted a huge study of the biggest stock market winners in American history. I wanted to determine the qualities of the biggest stock market winners — before they went on their giant, life-changing runs. Through hundreds of hours of work and exhaustive computerized data analysis, I found that a stock's success boils down to eight key fundamental factors. 1. Positive Earnings Revisions. I like to see stocks that have had their earnings estimates increased by Wall Street analysts. This usually tips us off to a stock that's about to “beat earnings.“ 2. Positive Earnings Surprises. Speaking of beating earnings, I also look to see if a stock has been able to beat its earnings estimates, and by how much. This is an important number to watch, because it often tells me about a stock that Wall Street isn't paying much attention to or doesn't yet “get.“ 3. Increasing Sales. I also like to see a company that can consistently grow its sales over time. Why? Because it's one number that is hard to fake. My background is in accounting, and I've always made sure to steer away from companies that use questionable accounting practices. Sales growth is a solid indicator. 4. Expanding Operating Margins. This simply tells me if earnings are growing faster than sales. A company that's able to expand its operating margins is usually a company that has a dominant position such as a monopoly in its industry. This company can raise prices without seeing a drop-off in sales. And that's a nice place to be. 5. Free Cash Flow. This tells me how much money a company has leftover after paying the costs of its business. A strong cash flow is important because it allows a company to invest more resources in growing its business. 6. Earnings Growth. This is the heart of all good financial analysis. As long as any company is able to grow its earnings consistently, its stock will do well. 7. Positive Earnings Momentum. It's not enough to see a company's earnings growth, I also want to see it growing rapidly. 8. Return on Equity, or ROE. This is the gold standard. ROE tells me how efficiently a company is managing its resources. I can't interview every senior manager at a company, so I like to think of ROE as a report card for management. Fundamentals play a critical role during earnings season. Earnings season, which covers the end of a quarter, is when every publicly traded company must open its books and share its fundamentals. These are the four most pivotal times of year. This is how we know if a company's growth is accelerating or tapping the brakes. Our companies typically post impressive numbers, and subsequently see a jump in stock value as a result. It's why I like to say that earnings season is my favorite time of year. This is when my companies really get their chance to shine. My findings have changed my life and the lives of many others. Although I started from humble beginnings, I’ve made more money than I ever care to spend (although I’ve spent a lot on sports cars, one of my other passions). I’ve helped many regular Americans make huge returns in the stock market. Over the next few days, I’ll show you how to find super performance stocks that can make you 1,000%+ gains. I’ll detail my common-sense method for profiting in the market’s fastest growing stocks. You’ll learn how to find them… how to buy them… and when to take your profits. The ideas I’ll cover are what made me “an icon among growth investors” according to The New York Times. And “one of Wall Street’s most renowned growth investors” according to Forbes. The proven system I’m about to share with you has made my clients and readers a great deal of money over the past 40 years. I’m confident they can help you do the same. Tomorrow, I’ll show you the origins of my system… and how it can help you make a lot more money in stocks. Regards, | .png)
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