One of the single best stocks to own over the last two years had nothing to do with oil, biotech… or really anything revolutionary.

The company – LightPath Technologies (LPTH) wasn’t really anything special at all.

It designs, manufactures and distributes optical and infrared components – like molded glass aspheric lenses and assemblies, infrared lenses and thermal imaging assemblies for the defense, medical, automotive, and telecom industries.

Nothing really too exciting… It’s not like it’s going to be the next Apple or anything like that.

But I did recommend the stock to subscribers of The Cheap Investor back in April 2013 at 75 cents.

It was the perfect recommendation.

At the time, the stock was down more than 78%. The market decided to sell off the stock… even as the company was producing profitable quarters, impressive backlog, and revenue.

The markets wrote off a good stock with great numbers, sending it to unsustainable lows.

Over time, though, the market woke back up to the potential of this greatly unknown stock, as its profitable quarters increased over time. In fact, in the latest earnings filing, the company posted a 26% jump in revenue thanks to momentum in global sales.

We also found significant gross margin expansion of 56% in the latest quarter, as compared to the 38% gross margins year over year.

It’s just part of the reason the stock has accelerated as it has over the last two years. In fact, since our initial recommendation at 75 cents, the stock has soared 405% to a high of $3.79.

It’s a perfect illustration of our core investment philosophy.

Like most investors, your top goal has been to enjoy a financially secure portfolio. It’s mine, too.

But to do so, your portfolio needs to generate above-market returns with as little risk, as possible. Unfortunately, with recent market volatility and massive market declines, your portfolio has taken recent hits on global concerns, oil, and risks of recession.

Many of the most well respected funds have lost you money, too. Bill Ackman’s Pershing Square fund for example lost 20.5% last year… and was down more than 14% in the first few weeks of January 2016.   That’s terrible… and it wiped out millions.

Others have fared much worse, betting on oil upside.

Despite that news, I’ve found a technique that’s created above-market returns for the better part of 30 years… with strong consistency.

Basically, I look for a company that’s fundamentally solid, with increasing sales and earnings that is selling near its 52-week low price. In its simplest form, it’s finding the bargain. I’ve used that philosophy successfully for over 30 years, and call it the “CHEAP” philosophy, as I’ve noted in my book – Making Big Money in Small Stocks.

It’s how I uncovered stocks like ACADIA (ACAD), which soared more than 4,000% in years.

PetSmart returned close to 3,000%. Pre-Paid Legal paid out 5,141%. Vanda Pharmaceuticals returned more than 4,400%, too.

I’m simply recommending stocks at lows that have been panned by those not paying attention in the markets. It’s the “Buy low, sell high” mentality. And logically, that is the only way an investor will make money.

The problem most investors have is they don’t think for themselves. Instead, they follow the herd. They get caught up in momentum buying, where they buy a stock that has hit new highs on the assumption that it will keep going higher.

Investors now realize that investment strategies, like momentum investment, which worked in the bull market of the 90s, may not make the grade in today’s more uncertain market. Political upheaval, terrorism, and accounting irregularities in the billions of dollars have caused an edgy market to become ever more volatile.

Where should the investor turn?

Back to the basics…

Looking back over 30 years of various investment strategies touted by different experts, the one strategy that I’ve seen work in both good markets and bad is buying low and selling high. J. Paul Getty stated it best in his well-known book, How to be Rich. He wrote that an investor should “Buy when everyone else is selling and sell when everyone is buying. This is more than a catchy slogan. It is the very essence of successful investing and accumulating wealth.”

Quality, low priced stocks are very attractive to the small investor because they have the potential for huge profits. However, it is vital that you invest in a company that has solid fundamentals AND purchase the stock at the right price.

The markets aren’t considered fully safe at the moment. But what I can tell you is that with this 30-year time-tested strategy with a focus on heavily ignored, revenue-generated stocks, you’ll outperform the markets with great consistency. I have…

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