Van’s Note: Readers of The Bleeding Edge know our focus is tech. But we also like to share worthy ideas from our rolodex of colleagues when they come across our desk…
Today’s insight comes from E.B. Tucker, editor of Casey Research’s Strategic Trader. I’ve known E.B. for a few years now. His eye for contrarian investing has always impressed me.
Last year, over dinner in Miami Beach, E.B. told me about a new investing idea he was preparing to share with readers. He calls these investments “Omega shares.” And his readers are now sitting on gains of over 800% thanks to one Omega share investment.
Today, E.B. shows how these Omega shares can capture explosive upside while limiting risk…
Read on to find out more.
By E.B. Tucker, Editor, Strategic Trader
842% in less than a year.
That’s the top gain that one group of investors are sitting on right now.
And it’s not the only triple-digit gain they’ve seen. Two other investments have doubled or more in the past 10 months.
It’s an impressive record. But I’ll understand if you’re skeptical about getting these kinds of returns on stocks in such a short period of time.
Except these are not stock returns.
Nor are they returns from cryptocurrencies, options, bonds, or ETFs. In fact, they’re due to an entirely different kind of security that most investors don’t know about.
That’s a shame because it’s not unusual to see double- and triple-digit gains in a short time span when investing in these securities (I call them “Omega shares” for reasons I’ll explain later).
I’ll tell you more about them below… and why they represent a great opportunity for racking up big gains without using options or cryptos.
Upending the Mattress Industry
The company tied to that 842% gain is called Purple Innovation (PRPL). It’s an online mattress retailer that’s making money hand over fist by shaking up the mattress business.
It’s not exactly the most exciting industry in the world, but when there’s a 842% gain on offer, who cares?
Founded by a rocket scientist, Purple Innovation originally developed cushions for wheelchairs. The company only started making mattresses in 2013.
By the way, I have a history in the mattress business. In my early twenties, I was one of the top wholesale reps for Serta.
E.B. working as a mattress salesman around 2005
If you’ve ever shopped for a new mattress, you know how unpleasant it can be.
But every so often, some innovative folks figure out a better way to sell products that millions of people need. Investing in those innovations can turn a small grubstake into millions.
Just think of what Amazon did to the brick-and-mortar retail sector.
The weak link in the mattress business is the extra cost tacked on by retailers. Direct-to-consumer companies like Casper represent a huge threat to the multibillion-dollar traditional mattress sales channels.
You may have seen Purple Innovation’s products advertised on TV or online. It is the company behind the Purple Mattress. It sells direct to consumers, cutting out the middleman and a host of fees.
Keep in mind that I’m not recommending that you buy Purple Innovation stock now. The time to buy was last year. But while I believe it’s too late to get into this company now, it’s a great example of the power of “Omega shares”…
Thanks to its innovative business model, Purple Innovation has been doing well. Since February last year, the stock has more than doubled. It went from $5.59 a share to above $12. Take a look…
Not too shabby. For regular investors, a 125% gain in less than a year is pretty satisfying.
But you shouldn’t have to settle for “pretty satisfying” returns. We can do better than that.
Check out the next chart…
As I said above, Purple Innovation’s “Omega shares” have climbed over 800% in the past year – more than six times the gain of the regular stock shares.
And there’s another benefit to Omega shares that you need to know about…
Limiting Your Risk
Omega shares offer a way to profit without breaking the bank. It only takes a little bit of money to capitalize.
When I first recommended Purple Innovation “Omega shares,” they cost 19 cents, compared to the regular share price of $5.59.
So if you bought 100 regular shares of Purple Innovation, you were in the hole for $559.
But if you bought 100 “Omega shares”… you only paid about $19 – a difference of $540.
The good news is that even though you’re laying down a smaller stake, you’re capturing the explosive upside while limiting your risk at the same time.
If a company soars, like Purple Innovation did, its “Omega shares” will soar too. Only they soar much more than the regular shares. That’s why I call them “Omega shares” – their value increases at a greater rate than the equivalent shares.
If the company does okay, they’ll still be worth quite a bit of money. And if the company flames out, you’ve only staked a small amount anyway, so no harm, no foul.
Now, these securities have typically been off-limits to normal investors. But I’ve recently unlocked a “backdoor” way that gives you access to them.
I’ll tell you everything you need to know in my Explosive Profits Summit on Wednesday, February 5, at 8 p.m. ET.
In fact, during my summit, I’ll give away one of my top “Omega shares” picks for free, offering you a head start on capturing these eye-opening gains yourself.
Editor, Strategic Trader
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