According to a recent Oxford Club teaser featuring Alex Green and Bill O’Reilly, massive stock buybacks are one of the “single best indicators” of a stock’s future success.
In short, Green believes that when a company announces a big buyback, “management is essentially betting their careers that the stock is undervalued.” And he suggests that share buybacks can “reward shareholders in a major way,” if you pick the right stock.
As for what he’s recommending, Green gave one away of his picks away for free during the pitch (C.H. Robinson) and teased three other “Super Momentum” stocks, which he shares in a report that subscribers of his ($2,095) Momentum Alert service get access to.
What are his three picks?
That’s what I’ll be looking into in this post. But first, let’s unpack Alex Green’s thesis to see why he’s so bullish on share buybacks right now.
Unpacking Alex Green’s “B Event” Teaser and “Favorite Buyback Stock Right Now”
Alex Green began the presentation by talking about a “single type of event” that he claims can “send stocks soaring upward,” which he referred to as a “B event.”
Long story short, the so-called “B event” he’s talking about is a “massive stock buyback,” and he says that this event can simultaneously increase the demand for a given stock while reducing the supply of shares.
“That’s exactly what a B event is.
“It’s an event that reduces the number of shares trading and, at the same time, increases the amount of dollars chasing those shares.
“In short, what I am talking about is a massive stock buyback.”
As Green explains in the presentation, stock buybacks are when a company uses its excess cash to buy back its own shares instead of paying a dividend, reinvesting it into the business, or holding it in an interest-bearing account.
It’s not hard to see how a company’s share price can go up if they’re buying their own shares in bulk without issuing new ones. But Green also made the point that large company buybacks can encourage other investors to jump in, further increasing demand while taking even more shares off the market.
Here’s how Green puts it:
“Buybacks are when a company uses extra cash in the bank to buy back shares of the stock.
“When they do this, they start by using hundreds of millions – or even billions – of dollars to buy up shares on the open market.
“This not only directly adds to total demand, but also encourages other investors and institutions to buy at the same time, pushing demand much higher.
“Then, once the company buys up their own shares, they take the shares off the market.
“This reduces the total supply of shares for future trading.
“In short, they’ve simultaneously increased demand and reduced supply.”
He also talked about how a CEO’s main objective is to increase shareholder value, and that because of this, when a company announces a big buyback, this could be a sign that the company thinks their stock is undervalued.
Of course, that doesn’t mean you’re guaranteed to make money. Companies buy back their own shares all the time, and the share price goes down afterward. So as Alex Green pointed out in his pitch, it’s not a foolproof method of predicting what a stock will do.
“No share buyback program is 100% foolproof.
“Sometimes, a company will buy back shares… and those shares will go down.
“That’s part of the risk in the stock market.”
What does he look for when picking a buyback stock?
According to Alex Green, there are “10 protocols” he looks for to identify the “best-performing stocks.” And the main ones he mentioned were that the shares are “actually” decreasing, that the buybacks are “big,” and “strong financial performance.”
“First, I want to see that shares truly are being reduced.
“Sometimes, companies will complete a share buyback. But then, they will reissue new shares afterward.”
[…]
“Second, I want to see BIG share buybacks.”
[…]
“Third, I want to see buybacks in stocks with strong financial performance.”
That’s the gist of what Green and O’Reilly talked about in the presentation, anyway. And shortly after explaining his thesis, Green gave away one of his “buyback stock” picks for free, which the presentation says is his “favorite buyback stock right now.”
The name of the company is C.H. Robinson (ticker: CHRW), a large U.S. multimodal transportation service and logistics provider.
“This company is exactly the type of opportunity I share with my subscribers in The Momentum Alert.
“But I’m going to give everyone this one for free.
“It’s a company few people have ever heard of called C.H. Robinson.
“It’s a Fortune 500 American company that offers freight transportation, warehousing, trucking and ocean transportation.”
– Alex Green (June 2022)
Why is he bullish on this company? According to Green, “business is booming,” and it passes his “protocols” with “flying colors.”
“It passes with flying colors.
“Revenue is up for six consecutive quarters.
“Its quarterly profits tripled from $78 million at the beginning of the pandemic to $230 million at the end of 2021.
“Best of all, the company has approved an enormous $2 billion share buyback program that should both increase the already-strong growth in earnings per share and help lift the stock even higher.
“This is a huge opportunity.”
As for the stock buyback Green’s referring to, that appears to relate to what is discussed in this December 2021 streetinsider.com article regarding the company’s plan to increase its share repurchase authorization by 20 million shares.
In any case, aside from that pick, Green teased three “super momentum” buyback stocks he’s bullish on. And while he didn’t share the details on them in the presentation, I looked into the clues shared on the Oxford Club website to see what I could uncover.
Alex Green’s 3 “Super Momentum” Buyback Picks
For whatever reason, Alex Green himself didn’t share many tangible clues about his three “Super Momentum” buyback picks in the presentation. However, I decided to visit the order page for the Oxford Club service he’s pitching (The Momentum Alert) to see if there were any clues there, and as it turns out, there were.
Here’s what that page had to say about his three picks:
“Alexander Green estimates that these three momentum plays could give you the chance to pocket 700% gains or more in the coming months.
“There are huge share buybacks taking place in these three stocks.”
Source: https://secure.oxfordclub.com/journey/DAYTO2095MALLTAGBOMT/1?organization-abbreviation=OXC
That same page shared clues about each of Green’s three picks. So let’s look at each set of hints, and then I’ll show you what I think each company is.
Pick One
“The first is an apparel company based in New York City…
“Revenue over the past year hit $2.77 billion, jumping 35% from $2.06 billion the year prior.
“Net profit margin is up 132%… and earnings per share skyrocketed 743% to $4.05, the highest in company history.
“The board of directors increased the existing share repurchase program to 10 million shares.
“That’s nearly 21% of the shares outstanding!”
One quick Google search for apparel companies in New York City that match those revenue figures led me to an article on cpp-luxury.com about G-III Apparel Group (GIII).
G-III Apparel is a clothing company that was founded in 1956 and designs, manufactures, and markets clothing in the U.S. and abroad.
And regarding the share buyback clue, this benzinga.com article states that the G-III board has increased its share repurchase program to 10 million shares.
Pick Two
“The second is an advertising powerhouse based in New York…
“The company enjoyed a record first quarter, reporting…
“Revenue of $643 million, an increase of 255%
“Gross profit of $101 million, an increase of 325%.
“And a huge $125 million share buyback program is now underway.”
This one, I believe, is Stagwell (ticker: STGW), a New York-based global marketing and communications group that was founded in 2015.
Why do I think that’s Green’s second pick?
Because aside from being a New York ad company, the revenue numbers shared above line up with what’s discussed in Stagwell’s Q2 2022 earnings report. And the company recently announced a stock repurchase program to the tune of $125 million.
Pick Three
“And the third is an entertainment company based in Virginia…
“This company is enjoying stellar performance.
“Recent quarterly results were just announced, showing revenue totaling nearly $258 million, up 130% year over year.
“And gross profit for the most recent quarter hit $108 million… up 296% from the prior year’s quarter.
“It just recently announced a massive $200 MILLION share buyback program.”
What could it be?
My research suggests that Alex Green’s third pick is Bowlero Corp. (ticker: BOWL).
Bowlero Corporation is a U.S. bowling center operator based in Virginia, and according to Wikipedia, it’s the largest ten-pin bowling center operator in the world. The company has 100s of centers globally, which average 40 lanes (much larger than the U.S. average).
As for how the clues match, the figures shared on the Oxford Club website line up with what’s shown on this company earnings report. And according to citiybiz.co, the company recently announced a $200 million share repurchase program.
So, there you have it… Alex Green’s three “Super Momentum” stock picks.
I obviously can’t guarantee that my guesses are right, but based on the clues, those appear to be the companies he recommends inside the report titled, “3 Ultra-Cheap’ Super Momentum’ Stocks Set to Surge in the Next Year.”
How can you know for sure?
The best way to get all the details about Alex Green’s picks is to see the above report, and the only way to do that is to fork out around $2k to join his Momentum Alert service.
I chose not to do that, but I will give you a quick overview of what this service is about in case you’re thinking about giving it a go.
Recommended: Go here to see my #1 rated stock advisory of 2024
What Is The Momentum Alert?
The Momentum Alert is an Oxford Club stock advisory service run by Alexander Green, a former Wall Street guru who’s been researching stocks for four decades. And according to Green, this service is a culmination of his life’s work.
“This service is a culmination of my life’s work… everything I’ve learned tracking the markets, working on Wall Street and analyzing stocks for around 40 years.
“I call it The Momentum Alert because we are actively trying to identify stocks that have unstoppable momentum driving them higher.”
Green says that part of his strategy with The Momentum Alert is targeting “big” buyback stocks that meet his “10 growth protocols.” And based on what is stated in the presentation, the service involves some form of options trading.
What do you get if you join?
According to the Oxford Club website, subscribers get two new trade recommendations each month, access to a model portfolio, updates on his picks, and research reports he’s put together detailing his recommendations, including the one I mentioned earlier. Subscribers also get video training and guides on following Green’s strategy (among other things).
How much does it cost?
The cost to join The Momentum Alert through the presentation is either $2,095 for one year or $3,095 for two years, and those amounts are non-refundable.
As for whether or not it’s worth joining, I can’t say as I’m not a member. But I have looked into numerous Alex Green stock teasers and uncovered some of his picks. So if you want to find out about his previous recommendations, check out the article I just shared.
Bottom Line
Alex Green’s “stock buyback” pitch highlighted the potential benefits of finding great companies that are buying back their own shares. And during the presentation, he gave one pick away for free and teased three others, which I think I’ve managed to uncover.
I have no idea if any of these companies will go up in price, nor do I know if his service will help you make money; nobody can predict those sorts of things.
But at least now you have an idea of what his three “Super Momentum” picks could be, so I hope you found this post helpful. Thanks for reading!
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