Buy This Stock: It Is Going To Fall 20%+ This Week!

Porter's Journal Issue #84, Volume #2

An Incredible Risk-To-Reward Opportunity

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This company has the very best underwriting process in the industry… It earns far more than most firms on its insurance float… It has increased its premiums at a 35% CAGR since 2015… Nearly every time it releases earnings, its share price falls… Buy this stock: it could produce gains of 50% in a month or two… A natural gas producer posts strong Q2 results… 

Table of Contents

I want you to buy a stock I’m virtually certain is going to fall 20%+ by the end of the week.

What you’ll read below won’t make any sense to most “normal” investors. But for those of you who understand risk versus reward, this is the best set up you’ll see all year. This is, essentially, a risk-free way to make around a 50% return.

The first part of understanding what we’re doing here is knowing why this particular stock, Kinsale Capital (KNSL), is so safe.

Long-time followers of our work know that we like the insurance industry for one key reason: capital efficiency. In almost every other kind of business, companies have a capital cost. They can either borrow capital or they can issue equity for additional capital, but the capital they need for expansion and growth almost always comes from outside the business. 

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