Earlier this week, we saw familiar clouds as the gigantic shadow of Nvidia Corp. (NVDA) earnings passed across the broader market. But I have to say, all those clouds have barely been murky enough to hold our stocks back. If anything, names like Sow Good Inc. (SOWG) should keep inching forward even when the Nasdaq steps back, counsels Hilary Kramer, editor at IPO Edge.
And when we get a ray of light, it’s enough to wipe out a lot of anxiety. The worst July in a decade is now a fast-fading memory, with performance so far in August being dramatic enough to give us an 8% end-to-end gain across the Buy List this summer.
That’s enough to beat the big benchmarks, especially the Nasdaq, which keeps stalling when it should be soaring. But that’s not our problem. Unlike market-weight portfolios that force investors to buy the biggest stocks and hold for functionally forever, we have the freedom to buy small, hold for a reasonable amount of time, and then decide where to pull the plug or let profitable positions ride.
Sow Good Inc. (SOWG)
We’ve done that this summer. Factor out the pools of dead money we’ve cleared out since the end of May and our score on the active portfolio basically doubles. It’s clear now that a few names had become a significant drag on performance. Letting go lets us focus on the names that are really working.
Those names are working extremely hard on our behalf. Even tiny little SOWG, which has fallen so hard from the heights in the last few weeks, had what it took to rebound slightly recently. In fact, there was nothing in its earnings report to keep it from recovering $20 in the foreseeable future...even if it takes another nine to 11 months to get there.
Remember, we’ve only been in SOWG since mid-May. In that accelerated timeline, this obscure stock has already given us a strong hint of what it can do when the market cooperates. Jay Powell isn’t going to be a threat much longer. Go, go, go!
Four months to go in 2024. Let’s see where we end up.
Recommended Action: Buy SOWG.
