You’ll Never Guess What’s Sold Out Across America Right Now!
As I’m sure you know, the race for a vaccine is on… with each second the markets are open. The direction of the market depends on whether the vaccine news flow is positive or negative.
You saw that positive impact on Monday, when the Dow soared 1,000 points on the promise of Moderna’s (Nasdaq: MRNA) vaccine.
You also saw the negative impact yesterday afternoon, when doubt was planted about the true validity of Moderna’s vaccine effectiveness – and the markets got hit with a sharp and sudden reversal.
Clearly, the direction of the markets now hinges on the vaccine news – which is a second-by-second coin flip.
So this means you must remain nimble and balanced as you navigate through a market that’s entirely driven by the vaccine news cycle.
But surprisingly enough, today’s Trade of the Day has nothing to do with a vaccine.
You may think that it comes totally out of left field… and you’d be right.
You see, I’m going to explain why Poolcorp (Nasdaq: POOL) has grabbed my attention…
I caught up with a college friend last week. She’s been trying to buy a backyard swimming pool for her kids this summer – and it’s been nearly impossible.
In fact, she resorted to a bidding war on eBay because pools are sold out everywhere else.
If you think about it, the logic makes total sense…
The looming threat of entertaining your kids all summer long means products that provide backyard amusement and recreation (such as swimming pools and trampolines) are back in high demand.
That’s where Poolcorp comes into play…
Poolcorp is a global pure play on swimming pools. It distributes swimming pool supplies, equipment and related leisure products in North America, South America, Europe and Australia.
The company also offers maintenance and repair products, like chemicals, supplies, accessories, and more for both in-ground and above-ground pools.
If you’ve ever had a pool – or know someone who has – you know that they’re expensive to maintain – and Poolcorp stands to capitalize on this consistent revenue stream for the lifetime of that backyard pool.
Talk about a reoccurring revenue model!
Not only that, but Poolcorp also offers construction and remodeling services for existing pools, as well as irrigation and landscape products. This even includes professional lawn care equipment and supplies. Add it all up, and Poolcorp is a winner that I really like, with or without a vaccine.
Action Plan: Poolcorp is an expensive stock, which means that the options carry a big premium. However, this might make for a nice stock play – or even a put sell.
Now, I admit – unemployment is at an all-time high, with 33 million Americans out of work over the last two months. But that hasn’t stopped Poolcorp. On April 24, the company gained 7% after reporting adjusted earnings of $0.71 per share, which beat the consensus estimate of $0.65 and increased 20.3% from a year ago. Quarterly net revenues totaled $677.3 million, which also surpassed the consensus mark of $636.5 million and increased 13.4% year over year. So as we head into summer, I like the idea of dipping a toe into the water on shares of Poolcorp (yes, pun intended).
So what are you waiting for? Dip a toe into the water, and join me in The War Room today!
P.S. Our biggest performance guarantee EVER – coming soon…
Right now, behind the scenes, we’re preparing toofficially launch one of the biggest performance guarantees we’ve ever offered. I can’t say anything more right now – except that you’ve never seen anything quite like this. So be sure to keep your eyes open because this is truly unprecedented. More to come…