Skill... Or Luck?

At noon on June 25 of this year, Jason Williams and I clipped on our mics and quickly glanced over our notes one last time before the cameras started rolling… 

“Hello! Welcome to The Wealth Advisory Top 10 for June.”

I made that introduction up all by myself. I thought it was pretty good…

We published our first Top 10 in April 2016. Because The Wealth Advisory has a portfolio of about 30 stocks, we were frequently getting questions from our subscribers about which stocks we like best. And that got me thinking (yes, it happens from time to time)…

I never expected my readers to own every stock in the portfolio (though if you did, you’d be up 51%). And while we do a very comprehensive update for each one in the monthly issue, it’s still a lot to take in. Plus, there’s a very nice range of investment options in the portfolio. 

You’ll find some fantastic dividend stocks that focus on health care, internet traffic, and online retail. We’ve got some energy plays. We’ve got tech stocks, marijuana stocks, consumer discretionary stocks… no surprise that a reader would want a little more detail on what they should be buying right now.

Enough people asked what stocks were currently my favorite that I had a fantastic and completely unique idea: “Hey, what if made a list of our 10 top stocks every month? We could even call it the Top 10! Genius!”

Jason and I have absolutely trounced the market with our Top 10. Just crushed it. Still, there was something missing…

So Jason and I started doing Top 10 videos back in June. 

Unrehearsed and Unscripted

Our Top 10 videos are wildly popular with The Wealth Advisory subscribers. They get more page views than anything we’ve ever done. 

Jason and I have made this a competition. We use a fantasy draft format, where we each select five stocks for our “team” and then see who gets the best performance over the next month. We’re pretty evenly matched — I think I’m 2–2 (but only due to a technicality involving a lag time between filming and the publish date, otherwise I’d be 3–1).   

The monthly loser gets the advantage of picking first. But he also has to endure the humiliating punishment that our videographer, Jordan, comes up with. And I’ll tell you: Jason looked great in that sundress from the September Top 10…

I wish I could share that with you. I REALLY wish I could publish it here. But it would be a pretty big violation of trust. No, not with Jason. With our subscribers who pay us $49 to get a year of fantastic stock picks and analysis from The Wealth Advisory. 

Now, with that said, I am allowed to share a stock or two with you from time to time. And so I want to tell you about Pyxus International (NYSE: PYX), the stock that got Jason into a dress and will have him suffering something even better (worse?) when we do the November Top 10 video in a few weeks…

So Much Winning…

I hitched my wagon to Pyxus for the August Top 10. This little beauty has kept me in the winners’ circle ever since…

Pyxus (formerly known as Alliance One) is a marijuana stock, sort of…

Its primary business is selling tobacco to cigarette makers. But that’s not a great business. It’s fairly stable, but there’s not a lot of growth. I discovered it back in March after it made some investments to get into the legal cannabis market. 

Now, there are a lot of new small cannabis companies that are making headlines lately. And that’s great — the fundamentals for this emerging consumer product are darn good. I expect there will be some winners out of this group. (And, in fact, we have one brand new company in The Wealth Advisory portfolio that we are convinced will be a winner — in fact, it already is. The company is growing revenue and has doubled its share price… and cannabis isn’t even fully legal yet!)

But for the most part, I believe it is the established consumer product companies that will be the ultimate victors…

I’ve written about New Age Beverages (NASDAQ: NBEV) here before. It’s a new company making cannabis-infused beverages like coffee. Great idea. But how will it stack up when Starbucks has a line of infused coffees for the same price? Starbucks already has legions of devoted customers. Its stores are already a destination. Seems to me it can easily leverage its strengths to ensure that a new product is a success…

And that’s why I like Pyxus. It already has a lot of experience distributing leafy material. It’s got relationships, a sales team, customers, supply chains, and so on…

Selecting Pyxus for The Wealth Advisory portfolio is an example of the analytical skill that keeps our subscribers consistently profitable. But there’s definitely an element of luck to the #1 pick for my Top 10 portfolio this week…

On Monday, shares of Pyxus jumped like 40% to $38 and change when it finally got some real attention. Yesterday, it added another $10. It’s back to $38 today, and there may be a little more downside still. But I think I’m looking pretty good to stay in the Top 10 winner’s circle, while Jason looks pretty good in… another dress? 

We’ll see…

And if you’d like be on board for November to see just how good Jason looks in a dress (or whatever), here’s how.

Until next time,

Briton Ryle

@BritonRyle on Twitter

The Wealth Advisory on Youtube

The Wealth Advisory on Facebook

A 21-year veteran of the newsletter business, Briton Ryle is the editor of The Wealth Advisory income stock newsletter, with a focus on top-quality dividend growth stocks and REITs. Briton also manages the Real Income Trader advisory service, where his readers take regular cash payouts using a low-risk covered call option strategy. He is also the managing editor of the Wealth Daily e-letter. To learn more about Briton, click here.