The Investing Club released another afternoon update. They called it the Homestretch. Catchy name for telling people what to buy when the market's almost closed.
This one says an industrial gas giant deserves its premium valuation. Not just deserves it. Should be owned. Two separate claims packaged as one inevitable truth.
Industrial gases. We're talking oxygen, nitrogen, argon. Stuff that exists in the air you're breathing right now for free. But compressed into tanks and sold to manufacturers who apparently can't figure out how to do that themselves.
The valuation is premium. Premium means expensive. Expensive means the stock costs more relative to earnings than its competitors. Why does it deserve this? The article will explain using metrics that have predicted exactly nothing about future returns but sound very intelligent when you say them out loud at a dinner party.
Here's what premium valuation actually means: other people already bought it and drove the price up. Now you get to buy it at the high price. Congratulations on your timing.
The Homestretch comes out every weekday just in time for the last hour of trading. Perfect window for maximum panic. You've got sixty minutes to decide if you believe them. Sixty minutes to wonder if everyone else already knows something you don't. Sixty minutes to prove you're the kind of person who acts on actionable afternoon updates.
They say it should be owned. Not by them, apparently. By you. They'll tell you all about how great it is while you're the one clicking the buy button on shares trading at twenty-four times earnings because industrial gas is finally having its moment.
The company sells compressed air at a markup and somehow convinced analysts this business model deserves a trophy.
Photo by david Griffiths on Unsplash
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