How I Really Made ,527 On This Stock

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Well holy smokies guys we got some big profits that we are gonna go ahead and talk about here today by the way if you’re new here i am jeremy this is a financial education channel i hope you guys are doing great out there i want to go ahead and talk about this specific stock how the stock came to me exactly how we really made so much on this particular stock because

I think a lot of people wonder you find a stock that makes you a lot of money how did it actually happen how did you come across that stock what process did you go through and what not and if you’re wondering what stock it is it’s good old elf on a shelf okay elf beauty which is a cosmetics company we have already booked this is booked profits of nine thousand

Five hundred and twenty seven dollars and ninety cents in our public account which in that particular account everything is documented every single trace documented by sells everything by the way if you’re interested in being part of that group it’s linked down there in the description and so that’s booked profits but then we also have unrealized profits of twelve

Thousand two hundred and fifty four dollars in that particular account meaning that basically we could sell those shares if we want it tomorrow and that wouldn’t bring our profit up to somewhere around twenty two thousand dollars somewhere around there roughly so needless to say it’s been a very successful stock and the craziest thing about this stock is it’s a

Stock that we’ve held for i don’t know maybe four or five months it’s not like it’s been a long-term hold the gains we have gotten in that stock have been absolutely insane okay especially if you’re looking at a percentage basis any of our shares we’ve either sold or we still have our up you know hundred plus percent eighty percent somewhere around there like the

Gains have been insane okay so let me go ahead and talk about this i think a lot of people when they see an insane gain they like that they’re like oh my gosh is that just locked is that inside information he must be getting some inside information well let me just tell you if it was about inside information like what the hell happened with gopro okay you’d better

Know i’m not getting any inside information okay so how this elf situation happened is basically my wife i noticed she was buying some cosmetics products this was probably like three years ago or so and she was buying a whole bunch of this one specific brand i never seen this brand in my life it was called elf cosmetics and their packaging was pretty cool she’s

Like yeah it’s really good quality products and therefore extremely cheap prices if i recall she was buying them at target at that particular time and they had just gotten in target very recently if i recall once again this is probably like three years go maybe a little longer than three years ago okay and then very shortly after basically the company goes public

Okay probably within a month or two months after the company actually goes public in the ceo goes on cnbc and he talks about the company i know we love the dog on cnbc a lot but i to be honest although a lot of times i don’t value their opinions very much they do have a lot of great ceos on from time to time who speak and give their opinions on their companies or

The economy and things like that so i know we like to mix it fun of cnbc sometimes but honestly cnbc can be valuable from a perspective of hearing ceos talk about their companies talk about the economy and things like that guys you know if you’re listening to them just for their opinions on stocks you know this is what it is you know take it with a grain of salt

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Let’s just put it that way okay but the company goes public and i’m kind of interested in this and my wife actually knew about as well she’s like should i buy the stock and so i went ahead and i actually did a full research on the company at that particular time i looked at their ipo prospectus i research like what type of retailers they were in and all those sorts

Of things okay so i looked into the company and i really liked the business model of the company i like the business overall but in the stock market there’s two things that matter what is the business the underlying business of that stock what is the valuation of that stock when those two things are great years an undervalued company it’s a great business that’s

When magic happens that was not the situation when elfin publicus was like a twenty dollar stock i think it had a valuation of a rounded billion dollars a little more than a billion dollars the price to sales ratio was extremely high the p/e ratio was extremely high the valuation did not match okay so i ended up not ever buying the stock i just felt like it was

Overvalued like the business didn’t like the stock overall okay so what do i go ahead and do i go ahead and i added the stock to my stock tracker app and a lot of times in this is why i tracked like 80s and 90s talks on my stock tracker app even though i might own like ten stocks at a particular time i still track another 8090 stocks and the reason is that there’s

Always businesses i’m looking into that i’m like i like that business a lot oh my gosh that business over there is a great business but the valuation on that business does not make sense so therefore i will not buy it you know stock market in general it’s all a game of patience it’s all a game of waiting for the great time to go ahead and buy a stock if that

Opportunity ever presents itself okay so i go ahead i add the stock to my stock tracker app it’s been on there for years now okay years i probably gone through two different phones and three different ipads for that amount of time okay and basically i watch a stock go from around 20 bucks where it i peeled somewhere around there roughly to a window to over 30

Dollars and i was thinking daymond i guess my wife should have put in that ipo because the stock went up quite a bit from his ipo price okay and then over time i watch the stock continue to crash okay early 2019 i see the stock is trading under $15 a share okay drop over 50% like well over 50% from its highs it had reached like a year or two previous okay so i

Decide okay this stock has fallen so much i got to find out what’s going on with that company i need to do a deep dive into this company is falling so much that maybe now i’m gonna be able to find a diamond and a rough with this talk and this is what i do with a ton of stocks all i’ll add them in the past i’m like i love that business don’t like the valuation it

Comes down huge over time because either the stock got way overvalued or something happen in the market or something happened that particular stock so i do a deep dive on this elf company i look at his 10k look at this 10 q i listen to conference calls i get completely caught up with the business and what do i find i find a company that absolutely still love just

As much as ever and i find a company that is starting to do some very successful things in the social media landscape with big-name youtubers and the makeup industry and things like that and i’m loving what i find okay so i love the business and now the stock has fallen so much that i actually loved the valuation okay and so what i go ahead and do is i start buying

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The stock somewhere around roughly $10 per share okay and meantime the stock goes down more and more rate after i buy those initial shares and this is why i don’t go all in on a shares right off the bat or something like that or invest super heavy this is why i buy usually in two to five thousand dollar chunks at a time when i first start buying a company because

A lot of times it’s gonna go lower okay this stock was an absolute falling knife and it continued to fall so i start my initial position somewhere around 10 roughly i start buying into the stock next thing you know the stocks in the seven to eight dollar range is that’s when i actually start loading the boat i like to call it where i start buying in five thousand

Dollars at a time ten thousand dollars at a time fifteen thousand dollars at a time in different accounts because i’m looking at this talk and i’m like it’s gotten to a place where the valuation is ridiculous entire company was trading at a market cap of like 300 million to four hundred million dollars and for this brand in the focus i was starting to see from

The management team as far as expanding into social media landscape and things like that i was like 300 or 400 million is ridiculous for this company i am literally stealing this company from the public markets okay so i absolutely start loading the boat and the majority by far and away majority of the shares i got were in the seven eight dollar range so needless

To say i was feeling pretty good about my position meanwhile jeffrey star was one of the most popular like youtubers when it comes to makeup industry was doing videos about elf and these videos were getting 5 to 10 million views and when you’re talking about someone that influential and is getting that many views you’re gonna talk about a lot of increased sales

And a lot of super positive things about the brain because jeffrey star was putting out these unbelievably positive videos about elf and you start putting all these pieces together and it’s almost like a perfect storm for a stock to go up in a ridiculous amount of time ok i wasn’t personally counting on the stock to go up this much this fast ok if i knew it was

Going to go up this much as fast i would’ve put every dollar i have in it obviously there wouldn’t have been an intelligent decision from a diversification in the stand point or something like that but if i knew 100% for sure it was gonna happen like that like obviously i would’ve went crazy with the stock right who knows if that would ever happen but let us say

Everything was going kind of perfect for this situation and the stock basically goes from a $7 stock to it’s over to xed in a matter of four or five months which is absolutely ridiculous i mean the stock trade is it trades today well over $15 a share market cap on it’s around i think somewhere around 800 million now or approaching 800 million when i was buying in

The stock just a few months ago the market cap was trading in the 300 million to 400 million range so the stock has gone absolutely parabolic and i think the moral of the story for this particular stock and what happens with a lot of stocks for me in the market is it’s all without timing the stock market in general is all about timing there’s probably 500 500 stocks

That i fully understand their business models and i love their business models and i believe they’ll expand in the future ok but there’s a select amount of stocks like 10 to 15 stocks maybe at a particular time that i can say i love the business i understand the business perfectly and the valuation matches so i absolutely love that business and let me go ahead and

Own that stock this is a very rare situation so the stock market’s all about patience it’s all about playing the right hand ok from my poker players out there right you could technically play every hand you get when it comes to cards right you doesn’t matter what cars you got oh i got a 2 7 offsuit let me go ahead and play that not really the smartest idea right you


Know wait till you got ace king you want to wait till you got you know king queen suited or something like that you want to wait till you get the rate cards to start playing a hand and when you get the right hand and you got the best hand you’re gonna go ahead and throw a lot of your chips into that pot and that’s exactly what we did with elf we waited for years

On the stock literally we waited for years on the stock we tracked it for all that time and then we got our opportunity and we’ve already booked profits of nearly $10,000 we have unrealized gains of 12,000 plus just in the public account alone and so needless to say we’re gonna made you know a car basically a nice car on the elf position all because we put in work

Several times all because we didn’t get impatient with the company we waited for the right time and when we got the right opportunity we went ahead in dovan and that’s honestly the name of the sock market honestly it’s all a game of patience it’s all a game of just knowing when’s the right time to take that risk because any stock you buy in the market it’s a risk i

Don’t care if you buy an apple stock i don’t care if you’re buying google stock facebook amazon the biggest of the biggest companies or a small little company like health they’re all taking a risk they could all go down the short term or a long term it’s all about picking the right opportunity when you say okay i understand this business well i know it inside and

Out the valuation on the stock is way undervalued let me go ahead and push some chips into this stock and let me go ahead and start buying it and let me take advantage of this for the longer-term opportunity obviously elf it’s gone up so much in the short term that we started selling some shares if continues to go up huge like it is will probably continue to sell

The rest and that wasn’t the plane going in it was a stalker i might have held for you know years but when it goes up this much this fast and the valuation over doubles as far as the market cap and things like that it starts to get to a place where okay now it’s starting to reach fair value i’m not as interested in it when i might have some other stocks going on

Now that are the next elf’s so that’s the name of the game in the stock market and when you get a stock like that i mean it can be addicting don’t expect all the stocks to be like that because they’re so unrealistic and when i get a stock like this i just have to remember they’re not all like this okay if i can get 20% a year from a stock that’s amazing the fact

That this stock many of our shares are up a hundred plus percent in a few months time it’s super unrealistic it was just the perfect storm for the stock and we’ve gotten to take full advantage of this guy so i hope you really enjoyed this story today make sure you smash the thumbs up if you did and make sure you share this with somebody who might be interested in

Getting involved in the stock market okay and let me know in the comment section if you guys have ever experienced something like a like an unbelievable gain in a particular stock i would love to hear from you guys down there in that comment section about your stories thank you for watching and have a great day

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How I Really Made $9,527 On This Stock By Financial Education

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