My REAL #1 Stock Pick is....

American Retirement Corp. (ACR). Geez what can I say about ACR that you don't already know? ALOT! That's cause you don't know ACR and probably never heard of it. But I'll tell you though, smart money has heard of ACR..and I'm talking about before IBD ran a quick little "stocks in the news" blurb with a small chart of ACR which no one saw. I did see it and the fact that it is a retirement company caught my interest. Why is that? Why would I have any interest in a boring 'ol retirement company that takes care of old people?! Am I nuts? Nah, far from it. I know for A FACT...that in the upcoming years, their will be an increased need in retirement and assisted living/care facilities in the U.S, due to the aging population, in particular the baby boomers. Yeah I know, Cramer constantly airs a re-run of one of his shows that addresses this need. But even without the show you don't need to be a rocket scientist to know that there will be a need for assisted living facilities in the future. Plus Cramer never mentioned ACR. The average and low volume also indicates that not too many know about it either.

American Retirement Corp. (ACR) 1yr Chart

So what makes ACR so special? Why not the other retirement/assisted living stocks? Why not Manor Care, and Sunrise Senior Living? Why not?! Ok, here it goes! Have you actually seen the insider buying at ACR?! Unbelievable! Not since CHK have I seen such robust insider buying! Insiders bought near $73,000,000 worth of stock! Yes, seventy-three Million dollars worth of stock....no typo. Hmm...with all those buys you think they have a good feeling this stock will be a great performer? This is a no brainer. Just buy some! And hold on to it!

Approach: Okay, you have two choices with ACR. You can buy some now in the 18/high 17 level, or wait for a small dip to high 16's. I have a feeling it may hit 16's again just to give insiders another buying opportunity. Then again it may never go to that price. I just noticed some big buy orders for the 16 range so I figured somebody really wants them cheaper...so be alert. My opinion is, buy some now and buy the rest of your position on dips.

Time Frame: Whoa, whoa! Hold on. This is a Long-Term Investment. This is meant for the long run so if you are not the patient type, then forget it, go with something else. Maybe can trade this, but you will not get to experience the full reward.

Target: 1st target is $23. 2nd target is 27.05 3rd target is.........???

Edit: Just out of curiosity, I compared ACR's amount of insider purchases to CHK's and I found out that ACR's insiders have invested over $20 million more than CHK's insiders. Hmmm... makes you think