This little-known Wall Street technique produces win/win scenarios, but it only works if you know exactly where to find them.
Not a single fund manager could use this technique even if they knew about it, but you could use it to your advantage right now.
There’s a Wall Street duel that’s been going on for quite some time, and I personally really like how one the two stocks looks right now. It could produce the win/win deal you’ve been searching for…
When two major companies are competing to be the best in a specific market, you’ll often find that their stock prices become very competitive.
They’ll start climbing above each other, alternating which company has the highest stock price, but what most people don’t see is the win/win deal that we can get out of these types of situations.
As long as we know when to get in and out of each one as they alternate, we should see healthy profits each time we make that win/win trade.
These Wall Street duels don’t happen every day, and that’s because most of the time you’ll have one big company that dominates a certain market, and all the other competitors will be trailing behind.
But I’ve recently found a gem of a duel that could prove to be very profitable for us:
Starbucks (SBUX) vs. Dunkin’ Donuts (DNKN)
These two giants of the coffee-shop industry are about as equal as it gets. Even though there’s some other players in the market (McDonald’s, Tim Horton’s, etc.), the question always seems to be: Do you prefer Starbucks or Dunkin’?
So, in terms of numbers, how even are they?
While Starbucks has a couple thousand more open stores than Dunkin’ Donuts, their stock prices show a fairly even playing field.
Their prices are within a dollar of each other, with Starbucks around $56.81 a share and Dunkin’ Donuts around $58 a share, and when one gets higher than the other, the other subsequently pushes harder for that leader spot.
Even though Starbucks has had almost 20 more years on the stock market, their histories are fairly similar.
Starbucks held its initial public offering (IPO) in 1992 for $17 a share, while Dunkin’ Donuts held its IPO in 2011 at $19 a share.
Both stocks are up just over 200% from their initial prices, and both are also trading near their all-time highs (SBUX within $6; DNKN within $2).
It’s reasonable to say that these two companies aren’t looking to back down any time soon, and if you’re able to act at the right time, you could ride the coattails of each rising stock as they race to take control of the market.
I’m a big fan of the action I’m seeing in Dunkin’ Donuts right now, and I think it could be a very profitable trade when the timing is right.
Even though Starbucks is on top at the moment, the signs that’ll trigger a Dunkin’ Donuts “buy” could be seen at any moment, and your win/win deal from this Wall Street duel could start any day now.
