By Matthew Clark, Banyan Hill Publishing, 2024-07-01
Using Massive Momentum to Spot Frontier Profits
In 1904, Matabele Reefs and Estate Co. established a small gold mine in the southwest corner of Zimbabwe.
The area was already home to artisanal mining — with locals panning for gold in the streams and digging through the rich tropical soil.
The new Blanket Mine marked the northwest end of the country's “Gwanda Greenzone Belt,” an area whose production paled in comparison to that of neighboring South Africa.
Eventually, as operations expanded, the Blanket Mine grew to extract around 40,000 ounces of gold from the ground per year.
But it wasn't easy going.
The mine has been shut down and changed hands five times since its inception due to political instability and other factors, such as company mergers.
So … why am I telling you about an obscure little gold mine half a world away?
Because the Blanket Mine was instrumental in turning one small company's stock into the biggest momentum breakout of 2020.
The Overlooked King of Pandemic-Era Profits
Obviously, 2020 is a tough year to look back on. COVID-19 took a serious toll on many American families, and it wreaked havoc on investors' portfolios.
Over roughly two months, the S&P 500 plunged 31%.
But there was one company that rebounded with force, outpacing the stock market more than 100-to-1 before the dust settled.
Caledonia Mining Corp. (NYSE: CMCL)
is headquartered in Jersey, a tiny island located between England and France. It acquired the Blanket Mine from Kinross Gold Corp. in 2006 and became the principal owner in 2019.
The next year, in the wake of a global pandemic, that one small mine helped CMCL become a market-beater.
2020: The Year of Caledonia Mining
For no other reason than an increase in the price of gold and upping its stake in a small Zimbabwean mine, CMCL took the market by storm in 2020.
Global markets sank in March as the COVID-19 pandemic ravaged the world.
But after the bottom fell out, the recovery was just as strong.
It just wasn't as strong as it was for CMCL:
From January 31, 2020, to July 17, 2020 (I'll explain why these dates are important in a second), CMCL stock climbed 98% while the broader S&P 500 managed a -1.8% return.
One question you might be asking is: Why is this significant?
Let me tell you…
Adam's System Flagged CMCL
Our chief investment strategist at Money & Markets, Adam O'Dell, spent painstaking months backtesting his Infinite Momentum strategy.
The strategy is quite simple:
Adam trades just 10 stocks aimed at beating the broader market.
After four weeks, if a stock (or multiple stocks) has lost momentum, he sells the laggards and buys new leaders.
Since 1999, the strategy hammered the S&P 500 300-to-1 with 35% annualized gains.
But what's more impressive is that from January 31, 2020, to July 17, 2020, Adam's backtest of the Infinite Momentum Alert portfolio held … you guessed it … Caledonia Mining Corp. (NYSE: CMCL).
That one stock alone beat the S&P 500 nearly 100-to-1 as the broader market melted down and slowly regained its footing.
CMCL is just one of many examples of stocks with the kind of near-term momentum Adam's strategy has identified.
And now that Infinite Momentum Alert is live, he's going to help you find and invest in companies with the potential for the same level of success.
Bottom line:
Just because the market is up, down (or stuck in neutral) doesn't mean every stock follows suit.
The key is to find those rare gems outpacing the market — no matter the overall trend.
And that's exactly what Adam's Infinite Momentum strategy is designed to do.
It targets 10 stocks with the greatest potential and then reevaluates that portfolio every four weeks — rotating out of stocks that are losing steam and replacing them with stocks that have that momentum potential.
If you want to add this strategy to your investing toolkit, click here to see how to join.
But I have to express some urgency here.
Adam just rebalanced the portfolio on Friday, so it's a perfect time to get in and start investing with this strategy now — before these stocks potentially go on a “maximum momentum” run.
Safe trading,
Matt Clark, CMSA®
Chief Research Analyst, Money & Markets
