Subscribers to my investment newsletter, PowerTrend Profits, know I look at the intersection of economics, demographics, psychographics and more to zero in on profitable, long-term investments. As a part of my filtering process, I look for companies with strong earnings growth prospects, solid cash flow, pristine balance sheets and, if they have it, a rising dividend yield policy. That???s the financial side of the equation, but there is another aspect that I look for in PowerTrend candidates for my subscribers — pain points.
Pain points are those problems or vexing issues that a company or even a person may have to contend with in business or as part of his or her life. An example of a company???s pain point is a sudden increase in its cost structure. My subscribers have seen this happen with beef prices, which are up more than 50% during the last several quarters, and those subscribers have profited handsomely as we invested in the right protein alternative at the right time. I say protein alternative because pork and shrimp prices were climbing alongside beef prices. I mentioned “the right time” to reference the fact that they were advised of this opportunity back in early January, well before Wall Street started paying attention to the looming beef shortage.
Read more about pain points and the Living Longer Lives PowerTrend at Eagle Daily Investor.