One gold mine in a remote region of Africa helped a company based on a tiny British island blow the S&P 500 away.
It was during one of the worst stock market crashes in recent memory.
In 2020, amid a global pandemic, the stock market took a nosedive of more than 31% from January to the end of March.
But there was one company that rebounded with force and outpaced the broader market nearly 100-to-1 through the middle of July.
Today, I’ll show you why its performance is significant as market weakness continues.
The Blanket Mine of Zimbabwe and Caledonia Mining
In 1904, Matabele Reefs and Estate Co. established a small gold mine in the southwest corner of Zimbabwe.
It didn’t produce a ton of gold at first … a least not as much as its neighbor, South Africa.
But, eventually, the Blanket Mine expanded to extract around 40,000 ounces of gold from the ground per year.
It wasn’t an easy history for the small mine.
It was shut down and changed hands five times from its inception, due to political instability and other factors such as company mergers. But it’s the final owner that’s important.
Caledonia Mining Corp. (NYSE: CMCL) is headquartered on Jersey, a tiny island located between England and France. It acquired the Blanket Mine from Kinross Gold Corp. in 2006 and became the principal owner in 2019.
The next year, in the wake of a global pandemic, that one small mine helped CMCL become a market-beater.
2020: The Year of Caledonia Mining
For no other reason than an increase in the price of gold and upping its stake in a small Zimbabwean mine, CMCL took the market by storm in 2020.
Global markets sank in March as the COVID-19 pandemic ravaged the world.
But after the bottom fell out, the recovery was just as strong.
It just wasn’t as strong as it was for CMCL:
From January 31, 2020, to July 17, 2020 (I’ll explain why these dates are important in a second), CMCL stock climbed 98% while the broader S&P 500 managed a -1.8% return.
One question you might be asking is: Why is this significant?
Let me tell you…
Adam’s System Flagged CMCL
Our chief investment strategist, Adam O’Dell, spent painstaking months back testing his Infinite Momentum Alert strategy.
The strategy is quite simple: Adam trades just 10 stocks aimed at beating the broader market. After four weeks, if a stock (or multiple stocks) has lost momentum, he sells the laggards and buys new leaders.
Since 1999, the strategy hammered the S&P 500 300-to-1 with 35% annualized gains.
But what’s more impressive is that from January 31, 2020, to July 17, 2020, Adam’s back test of the Infinite Momentum portfolio held … you guessed it … Caledonia Mining Corp.
That one stock alone beat the S&P 500 nearly 100-to-1 as the broader market melted down and slowly regained its footing.
CMCL is just one of many examples of stocks with the kind of near-term momentum Adam’s strategy has identified.
And now that Infinite Momentum Alert is live, he’s going to help you find and invest in companies with the potential for the same level of success.
Bottom line: Just because the market is down doesn’t mean every stock follows suit.
The key is to find those rare gems outpacing the market whether it’s up or down.
And that’s exactly what Adam’s Infinite Momentum Alert strategy is designed to do. It targets 10 stocks with the greatest potential and then reevaluates that portfolio every four weeks — rotating out of stocks that are losing steam and replacing them with stocks that have that momentum potential.
If you want to add this strategy to your investing toolkit, click here to see how to join. But I have to express some urgency here. After getting a short extension from our publisher, we’re closing the doors to this initial offer at midnight Eastern time tonight.
Matt Clark, CMSA®
Chief Research Analyst, Money & Markets