The Trend

Boring Stocks Can Be the Most Exciting Stocks

Sometimes, boring is better.

Tell me – would you rather invest in a company that’s soaring on the latest, hottest trend.  Or, would you rather buy a stock that’s so boring, it’s been years since it’s had any press?

Like most of us you’d choose the first one. 

Unfortunately, sometimes, the trendy stocks will cost you – a lot.  Just look at the SNAP IPO disaster.  It hit a high of $29.44 and fell $10 a share.  Not a good move.

But believe it or not, it’s the boring, snooze-fest stock that’s the better.  In fact, most times, you’ll pay much less for this one than for a high-priced trendy stock.

Plus, you stand to do even better.  In fact, the more boring, the better it is for your portfolio.  That’s because by the time most investors have woken up to the same opportunity it’s already far too late for them to profit from it. Unfortunately, many of us are too quick to ignore a stock simply because it appears to be unworthy of our investment.  It’s too boring. 

What you’ll find most often, though, is that’s the wrong move.

Sure, your “boring” trade may take time to move.  But much like the story of the tortoise and the hare, you’ll find that slow and steady actually wins the race.  Small cap stocks often fall into this category.  Look at a stock like Pulmatrix Inc. (PULM) for example.

For months, it went greatly unnoticed, trading in a tight sideways pattern.  But it wasn’t just another “boring” stock.  The company was working on something big behind the scenes that would eventually send the stock from a low of about 60 cents to $7.

In January, the company already announced that it had received the "Qualified Infectious Disease Product" (QIDP) from the U.S. Food & Drug Administration for PUR1900, its drug candidate for treating fungal infections in the lungs of cystic fibrosis (CP) patients.

Then, a Harvard scientist highlighted the company for its “dry powder” technology to deliver drugs directly to the lungs and help treat chronic obstructive pulmonary disease (COPD) and other illnesses.  If successful, the company could reach an addressable market of 30 million Americans that do suffer from COPD.  Other current treatments on market aren’t as efficient for drug delivery.  That’s reportedly not the case with the PULM “dry powder” technology, which can deliver three to 50 times more drugs to the lungs when compared to the competition.

By not avoiding boring stocks, traders had the opportunity to bank more than 1,000% returns.

Or even ACADIA Pharmaceuticals (ACAD).  For quite some time, even this stock was greatly ignored at less than $2.  It, too, was considered a boring stock.  But what traders missed cost them big.  In fact, the stock would eventually run to $51.99 highs on the heels of great news on its Parkinson’s disease Psychosis (PDP) and Alzheimer’s disease Psychosis (ADP) drug.  It would run up more than 4,000% as a one-time boring stock.

Bottom line – never avoid what you may believe is a boring stock for a trendy one.  You may be passing on an opportunity to make an obscene return.