With brand-new tax legislation making its way through Washington, WSI TV has been doing nothing but investigating how to make sure it means money goes into YOUR pocket.
And I’m excited to say that we’ve done just that!
So, let me ask you this: how would you like to get TWO tax returns…?
Any sort of major economic change means money will be going out of certain doors, and straight into others. And there’s no denying that the new tax code fits this description.
We just need to make sure we see where the money is going and position ourselves in the same exact spot.
This reminds me of a great Warren Buffett quote that we discussed recently on WSI TV:
“Opportunities come infrequently. When it rains gold, put out the bucket, not the thimble.”
Well, we see an opportunity, so get your bucket ready…
In a nutshell, a relatively obvious consequence of the new tax legislation is that highly taxed companies should see a significant immediate benefit from the lowering of the corporate tax rate from 35% to 21%.
So, it’s time to start looking for quality companies that currently have a big tax bill…
More specifically, look for quality companies with the highest effective tax rates, or the average rate at which pre-tax profits are taxed.
Why?
Well, the new tax law projects to have a direct impact on the bottom lines of these kinds of companies, meaning there’s a very good chance the stock price of these companies will get a big boost.
So a bet placed on these companies at the right time means an easy payday as a sort of “second tax return” you’ll be getting from the new tax legislation!
And although I strongly encourage you to dig deeper and find even more opportunities in this regard, I’ve already picked out a few of my favorites…
- Humana, Inc. (HUM) currently has an effective tax rate over 45%. That’s why this healthcare stock gets a nod as one of the companies set to benefit the most from the decreasing corporate tax rate.
- Amazon (AMZN) shouldn’t be a surprise here. With a gigantic tax rate and fantastic stock performance since 2015 and beyond, this stock will certainly reap rewards from the new tax rules. President Trump may not like AMZN CEO Jeff Bezos, but that shouldn’t play a part in this equation.
- Broadcom (AVGO) is currently poised to get a bump in stock price no matter what, but especially considering this tech company’s large tax bill.
- Centene Corp. (CNC) is another healthcare company with a massive effective tax rate (about 47%). Mixed with an impressive performance for the stock in spite of that, the move down to a 21% corporate tax rate stands to be a big benefit to CNC’s bottom line.
So, with your bucket in hand as you wait for the gold to start raining down on you, all that’s left is timing.
Pulling the trigger while any of these companies’ stock prices are overbought could be disastrous for your position even if the new tax rules have the expected impact.
If you want that “second tax return” by making the right bets on those companies above, you’ll have to do so at the right time! But that’s exactly what we plan to do, and when the time comes, subscribers to our premium recommendation services, like Highfliers Hotline, will be alerted right away…
