8 May

Catalyst Swing Trade Alert


Stocks were mixed today, as the market faces uncertainty going into Friday’s trade deadline. As of now, the U.S. is expected to hit China with further tariffs unless some type of resolution can be reached in the coming days.

And whenever you have uncertainty…volatility will follow. That said, it shouldn’t come as a shock to see stocks sell-off when fear enters the market. But until there is a resolution, trading might stay choppy till Friday.

However, if you stick to trading stocks that have catalysts, that is stocks that have recent or fresh news, there is a better likelihood they will trade different from the rest of the market.

For example, if there is no news in the Home Depot, it’s going to get crushed with the rest of the Dow stocks when it’s down as much as it was yesterday. That’s why traders love stock market sell-offs because they move fast and are more volatile (than slow grind bull runs).

That said, I’m not too worried about what’s going to happen Friday. After all, my focus is on patterns, catalysts, and values. Most of the stocks I trade and alert my clients are on their own island (they are not correlated to the overall market).

Furthermore, I don’t believe my latest catalyst swing trade alert will move with the market (if there is a sell-off). You see, there are a series of events the company has lined up, that I believe will drive shares significantly higher from where they are.

But, before I explain more about the company, let me briefly tell you what my catalyst swing trade alerts are all about.

Now, if you’re a Jason Bond Picks client, you receive about 10-15 of these alerts a month. Of course, I can’t share all of them with you, it wouldn’t be fair paying clients. However, I do like to share some with you too, to get a taste of what part of my service is about.

Keep in mind, the holding period for the typical catalyst swing trade alert could be weeks or even longer. However, the profit potential is also more substantial on these type of trades, which aims for returns as high as 20-40%

Of course, the way these type of trades work is it’s a numbers game. You’ll have some losers… but the size of the winners should wash out the losers and then some… As we’ve already seen this year with trades like (HAIR) and (AFMD)

That said, my latest alert is a small-cap company with multiple catalysts coming up… read on to find out why I have a bullish bias and game plan on how to play it.

Catalyst Swing Trade Alert

My latest catalyst swing trade alert has some events coming up… and it could see a strong run higher in less than a month. Before we get into the play, let’s get a brief overview of the company.

Genius Brands (GNUS) is a content and brand management company. It’s a media company that creates and licenses animated multimedia entertainment content. The company distributes its content in all formats as well as a broad range of consumer products based on its characters. In the children’s media sector, its portfolio features content with a purpose for toddlers to tweens. This content includes baby genius, rainbow rangers, Netflix Llama Llama, Spacepop, Warren Buffett’s secret millionaire’s club, Thomas Edison’s secret lab, and Stan Lee’s cosmic crusaders. In addition, the company also acts as a licensing agent for certain brands, leveraging its existing licensing infrastructure.

Basically, the company is creating some fantasies that last a lifetime. The movie industry is tough to be successful as success is not driven by talent but also by the opportunity to have the world know your talent. You can create the most amazing painting, but if no one sees it, it will not be classified as a success.

Genius Brands Big Plans in 3Q 2019

Genius focuses on creating animated characters that inspire our youth at a very young age. This young company, led by a management that is very experienced in this industry, has some new series in their portfolio that are gradually conquering the world. They are 5 years old and have built a catalog that contains over 470 episodes of animated content. Their two flagship brands are Llama Llama, now in its second season on Netflix, and Rainbow Rangers, still in its first season on Nick Jr. Besides this they are planning to have approximately 450 different products coming into the market, beginning in the third quarter of 2019.

The team involved in Genius is very experienced, even only looking at who is involved in Rainbow rangers says enough: “From the creative dream team that includes Rob Minkoff (The Lion King), Shane Morris and Tim Mansfield, who co-wrote, (Disney’s Frozen), and key designs by legendary Disney designer Ruben Aquino, designer of key Disney characters from The Little Mermaid through Frozen, comes Rainbow Rangers”.

If you are still doubting this company… here’s a statement from the Chairman and CEO Andy Heyward – from a recent investor conference, “As many people know, the first cartoons I worked on were the Flintstones, the Jetsons, and Scooby Doo. They are all still around today, they are all still selling toys and cereals and backpacks and vitamins, and they are all many times more valuable today than when they were first created.”.

I’m convinced they have all the capabilities in house to create a new brand or trend in the cartoon industry that could last for years and decades!

Just recently, Nickelodeon ordered a second season of Rainbow Rangers. This pivot point indicates a longer-term commitment and opens the door for starting the lucrative merchandising. They intend to start up this merchandising during the summer but even more interesting is the fact that they will launch 2 new products shortly and these are the main catalysts we will be playing!

GNUS Upcoming Catalysts

1)  New Product Announcements

In Genius Brands’ latest earnings conference call, CEO Heyward stated, “Well, I’m going to say, we have two very strong and powerful brands coming forth. When I say powerful brands, I say in the magnitude of Rainbow Rangers and Llama Llama, ones which will be very widely licensed, which will have a lot of products coming into the marketplace, and which will be on major broadcasters. We plan to announce one of them prior to licensing show, which will be coming up in 60 days in Las Vegas.” This show in Las Vegas is the largest licensing trading expo and will be held on 4 June.

2) Announcing Master Toy Licensee

With all the new merchandising planned to hit the market this summer, they will have to appoint a master toy licensee. Such a licensee could design, produce and bring to the market the Llama Llama and Rainbow Warrior merchandise. It could even be an exclusive worldwide license.

In the recent earnings call, the CEO mentioned “… We have a very close relationship with Walmart, with Target, with Amazon …” At the time they announce this master toy licensee, a big name will probably be linked with Genius and attracting a lot of investors.

Now that we know the upcoming catalysts and dates, let’s look at the play.

GNUS Brands Play

Here’s a look at the daily chart in GNUS.

With the stock trading in the range $1.90 – $2.10 over the last month (the stock caught a nice pop today, but is coming back into the $2 area), it looks like it could be a good long before the catalysts hit the news wires.

Now, a stop could be placed around $1.75 level. Ideally, the two catalysts will hit at the same time – sending the stock higher. Although Genius has signs of a very good long term play, if you’re in it for the catalyst trade… it makes sense to take profits when the news hits the wire (or before June 4).

If you want catalyst swing trade alerts, as well as real-time alerts, click here to get started.

1 Comment

  1. Matt

    Nice, Jason!


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