By February 9, Chief Income Strategist Marc Lichtenfeld had already landed seven wins for the year in his Stock Sequence Trader research service. It was a strong start, but a lot of negative things have happened since early February... A pandemic, an economic downturn, riots. And in most cases, these events would be pretty damning for a portfolio's performance... Unless you're Marc Lichtenfeld, who has continued what he started in Stock Sequence Trader. So far this year, subscribers to Marc's Stock Sequence Trader have had the chance to earn an average annualized return of 218%. (The actual annualized return of the S&P 500 is a measly 0.1%.) Marc has closed out 25 winning positions in 2020 - 11 of which were triple-digit gains. Here are some of the highlights: - 129.3% on Silicon Motion (Nasdaq: SIMO)
- 142.1% on Alphabet (Nasdaq: GOOG)
- 156.3% on KKR & Co. (NYSE: KKR)
- 172.2% on eHealth (Nasdaq: EHTH)
- 230% on Charter Communications (Nasdaq: CHTR).
So how does he do it? Today, we're pulling back the curtain. According to Marc, he screens for three specific catalysts that drive up share prices when he makes a recommendation. - First-time dividend initiation
- Merger or acquisition
- Earnings report
Let's break down each catalyst to see how it works (and how it's led to that 218% annualized return)... First, Marc looks for companies that he expects will initiate their first dividend within the next 12 months. "When a company initiates a dividend for the first time," Marc says, "it's a sign to Wall Street that things are going very well. It means that cash flow is stable - most likely growing - and that management expects cash flow to continue to be strong for the coming years. "The last thing a CEO wants to do is initiate a dividend and then have to cut it later. So a dividend initiation is a huge vote of confidence by management. In turn, that attracts investors and drives up share price." Luxury sports car maker Ferrari (NYSE: RACE) is a great example... An options play soared 4,891% in just 16 months after its dividend initiation on February 16, 2017. Second, Marc looks for companies that are potential candidates to be bought out by a larger company. On Wall Street, this once-in-a-lifetime event is called either a merger or an acquisition. The second an acquisition is announced, the value of the company being acquired skyrockets. That's because when a smaller company is acquired by a larger one, it receives a sudden influx of new capital, talent and distribution channels. It suddenly has the backing of a powerhouse to propel its business to the next level. Also, the acquiring company almost always offers a premium for the stock in order to complete the deal. And so, the stock price rockets. Case in point... | 
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