New Supernova Mission: Explorer 1

The Motley Fool Supernova service has recently announced a new “mission” called “Explorer 1” to go along side their successful Odyssey and Phoenix missions.

They haven’t explained fully what the new mission will be but they have recently begun providing some clues and it has peaked my interest. The launch date for the mission is late January which coincides with the recent re-opening of the Supernova service to new members.

The structure of the mission seems to be based on their popular Battle Royale feature in their monthly podcasts where they pit random Supernova stocks against each other in a head to head tournament until they end up with one winner for the month. They recently posted an Explorer 1 preview video where they ran a similar tournament for wearable technology companies, coming up with a winner that they said would end up in the finals. So my guess is they will run groups of these tournament for stocks within a particular industry or investing trend and eventually pick an overall winner across all industries. I don’t know if this is going to be done in some way which will result in a real money portfolio of these stocks or if it will be done purely for educational purposes but they have alluded to community involvement as well.

Even if this purely educational, I like what I have seen so far. I think anything that provides more insights into the companies they cover and allows us to get the thoughts of David Gardner and his team is very beneficial to the members and is in line with what is expected from a premium service and its premium price tag.

{ 2 comments… add one }
  • Bob Cohen January 5, 2014, 2:42 pm

    Thanks Kevin for your excellent input. I previously belonged to Odyssey Supernova, but quit due to poor initial results. I realize now that was a mistake and patience is important. I am planning on rejoining Supernova when it reopens. Because many of the picks won’t be profitable, I wonder if it would be better to put a small amount of money on each recommendation, and then a much larger additional amount if that stock doubles. It seems as if once a stock doubles, it’s on it’s way to a substantial gain. I would appreciate your thoughts on this and specifically, once a recommendation doubles, how often ( in general ) does it suffer a significant pullback. Thanks for your input.

    • Kevin January 5, 2014, 5:19 pm

      Thanks for the question. The great thing about Supernova is that it is managed like a portfolio and the advisors tend to be pretty judicious about their allocations. So for riskier stocks they tend to allocate less initially. And they aren’t afraid to add to positions that are winning. So you could simply follow their advice and be in pretty good hands.

      I do agree with your thesis of buying more when a stock is successful but doubling may be too high a threshold. I like to add to stocks when they are up 40-50% which in itself is a substantial gain and allows you to capture more of the potential upside. I’ve also noticed that when stocks double there is often a pullback as I think people are taking profits. That can be a good time to jump in as well.


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