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Sometimes it takes an outside perspective to slap you back into reality. Like when your best friend tells you your girlfriend is a terrible person but you don’t realize it until you break up with her. Or when you finally leave that job that was slowly eating away at your soul. Those four years you spent as a Miami Heat fan. I’m here to provide you with that cold bucket of water. Today we’re going to learn how to recognize if you’re in a cult stock.
Real cult, charismatic leader. David Koresh convinced his followers he was the second coming of Jesus Christ. Cult stock, have you ever talked to Tesla investors about Elon Musk? Not going to lie, I’m a fan of Elon. The guy is the real life Tony Stark without the good looks or snarkiness. For investors, he’s the second coming of Nikola Tesla. Now if he moves Tesla HQ to Waco, Texas, watch out son.
Real cult, unshakable faith in its vision. When Marshall Applewhite led the Heaven’s Gate religious group to their mass suicide to catch a ride on the Hale Bop comet, 39 people died. They thought the Earth was going to be recycled and their only chance to survive was to try and become children of the next level. Cult stock Starbucks has been tricking us into downing lattes on their WiFi for years. They also offer up free college at Arizona State University for their employees. Obviously they use the term college loosely. But if that’s not an attempt to make you a child of the next level, I don’t what is.
Real cult, promises the apocalypse. Charles Manson spoke to members of his cult about Helter Skelter, an apocalyptic war arising from racial tension. Cult stock, remember when Jamie Dimon decided to put up billions of JP Morgan Chase money to bail out Bear Stearns and agreed to absorb the first billion of losses. It was the only way to avoid Armageddon for the banks. JP Morgan was effectively propping up the US economy.
Real cult, has you drinking the Kool Aid, figuratively and literally. Jim Jones had members of his group commit revolutionary suicide by drinking cyanide-laced grape-flavored Flavor Aid. The largest event saw 909 inhabitants die in a single day. Cult stock, Bill Ackman invested billions of dollars his own money and billions from his hedge fund in Valeant Pharmaceuticals . Then Ackman spent months defending his position while shares when from $263 to $25. That’s a nice tall glass of losses. Wonder if it was grape flavored.
Real cult, establishes front groups. David “Moses” Berg’s Children of God was an offshoot of Christianity that preached against moral decay and evolution. Turns out that dirty pervert was opposed to anti-pedophilia laws. Cult stock, Herbalife convinced investors it was a wellness brand that helped people lose weight. In actuality, it was a giant pyramid scheme that preyed on uneducated, poor people with a dream of a better life.
If you’re invested in what you think may be a cult stock, go to Zacks.com and immediately check out the stock’s Zacks Rank. It will tell you what the outside world thinks of your stock. For example, after some rough press, Herbalife (HLF - Free Report) is actually a Zacks Rank #2 (Buy). A big reason for the rank is analysts revising their earnings estimates for the current year. The bullish sentiment has pushed up our Zacks Consensus Estimate from $4.49 to $4.82. Also, a string of earnings beats capped off with last quarter’s 29 cent surprise with EPS coming in at $1.36.
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How to Tell if You're in a Cult Stock
Sometimes it takes an outside perspective to slap you back into reality. Like when your best friend tells you your girlfriend is a terrible person but you don’t realize it until you break up with her. Or when you finally leave that job that was slowly eating away at your soul. Those four years you spent as a Miami Heat fan. I’m here to provide you with that cold bucket of water. Today we’re going to learn how to recognize if you’re in a cult stock.
Real cult, charismatic leader. David Koresh convinced his followers he was the second coming of Jesus Christ. Cult stock, have you ever talked to Tesla investors about Elon Musk? Not going to lie, I’m a fan of Elon. The guy is the real life Tony Stark without the good looks or snarkiness. For investors, he’s the second coming of Nikola Tesla. Now if he moves Tesla HQ to Waco, Texas, watch out son.
Real cult, unshakable faith in its vision. When Marshall Applewhite led the Heaven’s Gate religious group to their mass suicide to catch a ride on the Hale Bop comet, 39 people died. They thought the Earth was going to be recycled and their only chance to survive was to try and become children of the next level. Cult stock Starbucks has been tricking us into downing lattes on their WiFi for years. They also offer up free college at Arizona State University for their employees. Obviously they use the term college loosely. But if that’s not an attempt to make you a child of the next level, I don’t what is.
Real cult, promises the apocalypse. Charles Manson spoke to members of his cult about Helter Skelter, an apocalyptic war arising from racial tension. Cult stock, remember when Jamie Dimon decided to put up billions of JP Morgan Chase money to bail out Bear Stearns and agreed to absorb the first billion of losses. It was the only way to avoid Armageddon for the banks. JP Morgan was effectively propping up the US economy.
Real cult, has you drinking the Kool Aid, figuratively and literally. Jim Jones had members of his group commit revolutionary suicide by drinking cyanide-laced grape-flavored Flavor Aid. The largest event saw 909 inhabitants die in a single day. Cult stock, Bill Ackman invested billions of dollars his own money and billions from his hedge fund in Valeant Pharmaceuticals . Then Ackman spent months defending his position while shares when from $263 to $25. That’s a nice tall glass of losses. Wonder if it was grape flavored.
Real cult, establishes front groups. David “Moses” Berg’s Children of God was an offshoot of Christianity that preached against moral decay and evolution. Turns out that dirty pervert was opposed to anti-pedophilia laws. Cult stock, Herbalife convinced investors it was a wellness brand that helped people lose weight. In actuality, it was a giant pyramid scheme that preyed on uneducated, poor people with a dream of a better life.
If you’re invested in what you think may be a cult stock, go to Zacks.com and immediately check out the stock’s Zacks Rank. It will tell you what the outside world thinks of your stock. For example, after some rough press, Herbalife (HLF - Free Report) is actually a Zacks Rank #2 (Buy). A big reason for the rank is analysts revising their earnings estimates for the current year. The bullish sentiment has pushed up our Zacks Consensus Estimate from $4.49 to $4.82. Also, a string of earnings beats capped off with last quarter’s 29 cent surprise with EPS coming in at $1.36.