Giving Jon Najarian a Great Call

Dear Wall Street Daily Reader,

“Based on the bearish Power Gauge rating, I think the risk of a negative earnings surprise is too great.”

I said those words in 2012… as I was appearing, for the first time, on CNBC’s Fast Money Halftime Report.

On the panel next to me was Jon Najarian. I’m guessing you’ve heard of him…

The NFL-linebacker-turned-high-profile-trader had become a household name in the financial world by then. He would go on to sell his publishing and trading platforms, optionMONSTER and tradeMONSTER, to E-Trade just a few years later… for $750 million.

He was at the peak of his financial career. And although I’d been making the rounds on CNBC, this was the first time we had crossed paths.

The stock we were talking about was online travel agency Priceline (which later changed its name to Booking Holdings). It was one of Jon’s bullish trades at the time. And I had just told CNBC viewers that it looked too risky…

The thing is, I didn’t know anything about Priceline. But I did have the Power Gauge to guide me. And that was all I needed…

The Power Gauge is the culmination of my life’s work. It combines more than 56 years of data-driven market research. And it packages everything I’ve learned about the markets into actionable information for every stock it processes.

So, I didn’t need to know much about Priceline. I simply typed in the ticker and got my report.

Instantaneously, I was able to see that Priceline was set up to release disappointing earnings. The Power Gauge made it clear.

Obviously, the interface for the Power Gauge has gotten more refined over the years. Here’s an example of another stock that the Power Gauge turned bearish on recently…

Chaikin Power Gauge

You’ve probably never heard of Aerojet Rocketdyne (AJRD). But that’s not important – because the Power Gauge has.

Each of these sliders is backed by data that can be further explored. And the data shows us that AJRD is in a risky spot for investors right now.

That was the kind of setup I saw when I told Jon Najarian – one of the most famous traders in finance at the time – that Priceline looked like a no-go. The Power Gauge had provided me with the most important (and most relevant) information.

Again, Jon was excited about the stock. But he was a professional. And that means he was willing to re-examine his ideas.

The interview ended with Jon saying, “I’m going to take a harder look, since Marc Chaikin doesn’t like it.”

That was Monday, August 6, 2012. On Wednesday, the day after Priceline’s earnings, the Halftime Report did a highly unusual follow-up.

The host started by asking Jon, “Chaikin spooked you a little bit?”

“He did indeed. And I think [… ] a lot of folks followed Mr. Chaikin. Those of us that picked up some cheap out-of-the-money puts [… ] well, they worked out like a charm.

“Those puts went from like $1.80 last night to $15, $16,” Jon continued. “Again, great call by Marc Chaikin. And thanks, Marc, for helping me out.”

In short, the Power Gauge was right. Priceline missed earnings. And Jon listened to it, made a bearish bet, and racked up big profits instead of taking major losses.

Now, one great call is just that… a single great call. But it was only possible because I had the Power Gauge at my side.

The Power Gauge uses the best data available to help individual investors make consistently great calls. And my goal is to share that power with as many investors as I can.

I’ll share more on how it works in the coming days.

Good investing,

Marc Chaikin
Stansberry Research

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Marc Chaikin

Marc Chaikin has done it all on Wall Street... He started as a broker more than five decades ago. He's worked as an analyst. And he's built quantitative models that the financial elite use to make buy and sell decisions every day.

Eventually, Marc decided he was done helping the rich folks on the Street...

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