They're just people like you and me doing this.
Some are retired. Others are still working.
They're in their 30s and 40s. Or 60s and older.
What they've all discovered is a surprising way to use government-mandated "100-F documents"...to reliably predict where and how far Wall Street's best-known stocks could go.
What's more, they're using that information to post 400–600% gains on those moves. Surprisingly fast. And even in down markets. Over and over again.
Is what they're doing illegal?
It can sure sound like it, since they're often using information not immediately available in the mainstream press. Yet the U.S. government is behind this strategy 100%.
Two days after seeing the government "100-F document" filed on Oct. 24, 2007...52-year-old David O'Connor was able to use what he knew to sock away $41,891
On Feb. 21, 2008, a certain "100-F document" was filed in Washington. Five trading days later, 47-year-old Gerald Lavine pocketed profits of $51,783
Roger Barnes of Colorado got more than a glimpse of the "100-F document" filed on Oct. 31, 2007. Six trading days later, he locked in a stunning $237,000 gain.
And the surprising truth is anyone can do this.
I lead a small group of individuals who are proving this right now.
Every week, this group and I share details pulled from what I collectively call "100-F documents" — even though most people know these documents by a few other names. I'll show you what we're finding in these documents in just a second.
I'll also show you how we're piling up winning market moves using a special system I've developed to take the best possible advantage of the details we discover.
For example, as I write this, we just locked in a 216% gain.
Bruce Bedford, one of the members of my group, just shot me a note...
"Dan, I sold my position today at $14...up 194% from $4.75 in 42 days...I'm delighted with the outcome...More, please!"
Believe me, we're just getting started.
But as I said, these quietly filed government-mandated "100-F documents" have a long history of revealing hidden details and golden opportunities. With some very impressive results...
Bob Gerry used an options move, five days after a key "100-F document" filing, to lock in a one-time gain of $254,944
H.B. Smith waited only 15 trading days after he saw another "100-F document" filing...to pocket $84,000 on the company that signed the papers
Cindy Feeback, an accountant in Houston, made $173,518 just 13 trading days after the company she was watching filed its "100-F documents" in D.C.
What's also surprising is how consistently effective this can be. In fact, even during the current calendar year, you can find at least 58 specific dates tied to specific "100-F"-driven opportunities.
Tuesday, July 15...Tuesday, July 29...Wednesday, July 30...Monday, Aug. 11...Thursday, Aug. 14...Friday, Aug. 29...Tuesday, Sept. 2...the list goes on.
On or very close to these dates, publicly traded companies across America are required by federal law to quietly file these confessional "100-F Documents"... full of buried facts and deep secrets the same companies don't dare share in their press releases and public puff pieces.
And reading these documents can be like reading a blueprint of tomorrow's financial headlines, every single one of them revealing things that could start driving the share price in one direction or another, provided you know how to read the details.
What I've created is a five-step system for doing exactly that. In a moment, I'll show you how it works. Including how you could use what you'll discover to make — over and over again — as much as double, triple, or even five or six times your money.
And I'll explain how you're uniquely situated to grab a personal 3 FREE months of "100-F" profit plays for an extremely limited time period...
But first, you're asking...
What Exactly Is a "100-F document"?
Imagine hearing the secret confessions of top CEOs...
Sitting behind closed doors at their boardroom jawing sessions.
Imagine knowing — before millions of American investors — exactly what the top-dog insiders at America's best and biggest companies are about to do with their money.
Normally, that's privileged information.
But on certain dates — at least 58 times per year — companies across America are ordered to file some of their deepest business secrets in these "100-F documents."
Two weeks after a certain company's "100-F documents" got filed in Washington, Ray Barker was able to make an options trade that made him $138,000
Aaron Broadwater, 61 years old and already once retired, added $135,000 to his nest egg...just 4 days after seeing another company's carefully filed "100-F documents"
On the day 49-year-old Matt Roche saw this "100-F document" filed, he quickly made an options trade on the move that netted an amazing $352,299.
The thing is, what you see companies reveal to the press is rarely as stark and honest as what you can pull from deep in the pages of these "100-F documents."
In fact, the gap between when they file these papers...and when the details get leaked to the press...can even give anyone a "loophole" opportunity to get the jump on opportunities, days before other investors.
As I'll show you in just a second.
Some knowledgeable market pros even call these documents "prediction papers"...because they realistically expose many of the secret plans, risks, and challenges for a stock over the coming year...
Why?
Because whereas company press releases get churned out by slick marketing pros...the "100-F documents" get filed under strict legal scrutiny. There's little wiggle room for insiders and fat cats to fudge the truth.
Recent takeovers and mergers...secret business deals that have yet to happen...hidden company plans...big successes, mistakes, pending lawsuits...even executive contracts gone sour...they all come out in the wash when a "100-F document" gets filed.
When the news is good, insiders don't mind if you get to take a peek.
When the news is bad, they wish you couldn't. But by law, you get to anyway.
And either way, you can turn that information into huge gains, once you know how.
The five-step system I'll show you is one way to do precisely that. I believe it's the best possible way, too. With reduced risk and highly predictable results...to the tune of four or five times every dollar invested.
Even if the company shares we're talking about are going down, rather than up.
Let me show you what I mean...
Systematic "100-F" Return #1: 600%
How a Bank's Reluctant Confession Could
Have Made a Few Smart Americans Very Rich
During the property boom, mega-bank Citigroup got cocky.
It loaded up on loans borrowers couldn't pay back. Then, based on the idea that housing prices don't crash, it packed up those loans...on the bet it could make billions more dollars trading them on Wall Street.
But it turned out Citigroup bet wrong.
As late as June 2007, you wouldn't have known it. Everybody figured Citi — one of the world's largest banks — had a pile of assets. That's what upper management wanted us all to believe, too.
At the time, Citi shares still traded above $50.
Which is why almost nobody knew Citigroup had secretly sat on a ticking time bomb...
See, while the press spin is often polished and positive...the government-mandated "100-F documents" can reveal the truth. And in this case, that's exactly what happened.
I studied those same details, ran them through a five-step system I've developed for evaluating these kinds of opportunities, and then shot a message to a very small group of interested market players, saying...
"This morning, Citigroup kicked off the third-quarter earnings season with a negative earnings preannouncement. Citi expects third-quarter net income will fall roughly 60% from a year ago, blaming 'dislocations in the mortgage-backed securities and credit markets, and deterioration in the consumer credit environment’...
"I see a value trap in bank stocks, as most of the analysis I read doesn't extend much beyond the parroted mantra that 'Banks are cheap on a price-to-earnings and price-to-book basis.' Citi's earnings preannouncement is reminding the market that earnings and book value should be taken with a grain of salt”...
By Oct. 1, 2007, Citi had already started to unravel. If you held shares, you braced for a wave of hurt. But anyone holding put options on the play could have turned sour grapes into a solid 600% return.
Options, of course, are a way for you to control a lot of shares of a stock at once...often at a much lower cost per share...and with potential gains as much as 10 or 15 times bigger than the move in the actual company shares.
When you think a stock is about to go up, you buy call options.
When you think a stock is about to plunge, you buy put options.
Making that call can be anyone's guess...unless you've got the power of what's revealed — as required by law — in the "100-F documents" I'm telling you about.
Take a look at this...
When I first applied my system and sent out my warning, it was available to only a very small group — a handful, really — and was not something I had a way to share with the general public.
But had you seen this disaster coming, your best move could have been to call your broker and ask for the January 2009 Citigroup $40 put options. They would have cost you only about $2 per share. And by January, you could have seen them soar past $14.
That's a gain of at least 600% in just over 90 days.
Here's another example...
Systematic "100-F" Return #2: 633%
The Little Detail That Turned a
"Lemon" Stock Into Lemonade
How many times have you bought a new stereo...a new television...a new laptop...or even something as simple as an iPod...only to have a salesman wave an "extra warranty" contract in your face?
Too often, I'm sure. And there's a reason.
See, some stores barely break even unless they can force lots of these extended coverage deals on their customers. That's how it was for nationwide retail chain Circuit City.
And you could see it, just by digging deeply enough in Circuit City's "100-F documents."
It was the detail even top execs ignored, however, when they tried to woo investors with highly publicized "cost-cutting" layoffs. Wall Street watchers love cost cuts. And they pumped money into Circuit City's shares.
They started bidding up the share price — from $5 to over $30 by March 2006. Circuit City fed the mania with $1.2 billion in capital-wasting share buybacks. Then, in March 2007, Circuit City did it again...cutting another 3,400 senior reps.
What watchers didn't realize was that the "cost cuts" meant dumping the stores' high-pressure, commission-driven sales team...and replacing it with hourly wage teenage salesclerks.
You can guess what happened next.
Without the pros to push those high-priced warranties and flat-screen TVs, Circuit City's sales figures sank faster than a bag of wet diapers in a kiddie pool...slamming Circuit City's stock.
Here's what it looked like...
Too bad for you if you held shares.
But what if you could have seen this coming?
You could have taken a ride on the tidal wave for gains as high as 633%.
How? Everything you would have needed to know you could have found buried in the "100-F documents" Circuit City was required by law to file in Washington.
The system my group and I use is designed to filter for these details.
And one perfect move you could have made at that time might have been to call your broker and request the Circuit City January 2008 $15 put options. It would have taken less than five minutes "work." And you could have paid just $1.50 per share.
Here's what could have happened for you next...
By the beginning of 2008, you could have turned around and sold those same put options for $11 per share...a gain of more than 633%.
Here's another example...
Systematic "100-F" Gain: 597%
Over 597% Gains in 60 Days,
Even After "Missing Out". . .
During the property boom, E*Trade must have gobbled up mortgage-related investments like candy. But any 4-year-old can tell you what happens when you gorge on candy.
You get sick.
That's exactly what E*Trade did.
By 2005, the company actually made more on the mortgage investments than it booked in brokerage fees. There was no way this could last forever.
Anyone who looked at the "100-F documents" could see the pressure building. Sure enough, when property started to unravel, so did E*Trade's bottom line.
From June–October 2007, E*Trade's highflying shares plunged from $25 down to $15...
Even if you "missed out" on the first part of the move, you still could have jumped in by early October...to snap up the January 2008 E*Trade $15 put options.
They were going for just $2.
Less than a month later, the "100-F documents" filed by E*Trade got much worse.
It couldn't hide any longer just how much the value of the subprime loans on its balance sheet had fallen. And it was obvious to anyone who looked how much cash E*Trade suddenly needed...just to stay in business!
That was perfect timing to step in and snap up the January 2008 E*Trade $15 put options.
Here's what could have happened for you...
By the end of December 2007, you could have walked away with another solid gain of more than 597%. But hang on. Why do so many of these "100-F document" moves point toward stocks that go down...while their put options go up?
The answer might surprise you...
Why I Love "Crashers" Even
More Than Stocks That Go Up
Don't get me wrong...
I'm no stranger to using this kind of deep research to find stocks that go up.
For years, I worked as a "detail man" and key researcher on a team that ran one of the world's 10 best-ranked high-end private mutual funds (you needed at least $2.5 million just to open an account).
That fund averaged an incredible 17.6% compounded annual return from 1990–2005. That’s unmatched by most of the 7,000-plus funds out there. And plenty of those gains came from playing the typical "long side" of the stock market.
But while I cut my teeth on that research, I learned something fascinating.
I discovered that there's a little-known "loophole" that you can use to play hundreds of opportunities many market amateurs regularly leave on the table.
A loophole that can let you make quite a bit of money by simply using a system like the one I've developed to help you find gains on the down, or "short," side of the market...
The Little "Loophole" That Can
Double Your Chances for Gains
See, study after study shows that when a company's "100-F documents" share good news, the top brass of the company can't wait for that information to get leaked to the press...even before the documents get filed in Washington.
But when the "100-F documents" expose bad news for a company's shares...company execs do the opposite, filing their legally required company plans and forecasts as quietly as possible...trying to not draw attention for as long as they can.
In other words, it can take as many as four trading days or longer — on average — for negative "100-F document" details to show up in places like The Wall Street Journal and Barron's.
And according to those same studies, even though a handful of financial pros watch the filings to make their moves...the big jumps in share prices don't happen until the details make it into the mainstream headlines.
That means you and I get a window we can use to make big gains on the news.
How Big a Window?
In October 2007, one University of California study — backed by the bigwigs at Barclays’ Global Investors unit — revealed that the more complicated the "100-F document" filings, the more time you have to make your play.
Here's something else...
Another study, from Pennsylvania State University, found you could track what the top dogs and insiders were doing — almost like setting your watch — around the filing dates of these secretive "100-F documents."
Just look at some recent examples...
On Sept. 5, 2007, shares of Krispy Kreme would have set you back $6.26. Sounds like a bargain for a doughnut maker that once traded near $50 — but on Sept. 6, 2007, a "100-F document" filed in D.C. revealed it could go lower. And it did, sliding to $3.24 just four days later
For nearly 14 years straight, Starbucks shares looked like portfolio caffeine...soaring to $41 per share. But a deeper look at the company's "100-F documents" revealed a slip in store traffic...and the steam was off the mug. By November 2007, shares hit $24...when "100-F documents" filed on Nov. 15 and Nov. 29 exposed more bad news. By April this year, shares hit a low of $15.66
Blue chip giant General Electric was the way to make money from the early
1960s to July 3, 2000...when you would have paid $58 per share. It's been down and dull for most of the years since, at about $38 per share by April 1 this year. On April 7, legally required "100-F documents" revealed news that sent shares falling to $32 by April 14...and below $30 by June 11, 2008.
The gap in those moves in the share price is the "loophole" that opens up. It's your opportunity to move on the shares before the tide of market investors jumps on the same trend.
And as I said, you can do that a couple of ways.
One risky way to play downturns is to "short" the stock. That means you borrow shares you don't own and keep the difference between what they're worth today and the lower price you expect them to have in the future. The risk is you could get it wrong and the shares could go up. And there's no limit to how much you could lose.
That's why I love to play these moves with put options, instead.
With put options on these downside moves, you limit the risk to only what you decide to put in. What's more, it can cost next to nothing per share for the options play. That means less on the line. But it can also mean much bigger gains. How big?
Up to 10 and 15 times the move in the underlying shares.
And sometimes more.
Imagine what you could have done, for instance, as those big stocks I just named dipped 48%...49%...and 62%. Put options on those moves might have given back as much as 480%...490%...620% or more.
What's surprising is how easy it can be to do this for yourself.
I've developed a strategic five-step system for filtering out the best opportunities. One thing I'd like to do for you immediately is rush you my newest research report, which details the five steps and tells you more about how you can tap these same events for gains.
I call this report Five Steps to Lock in Triple-Digit Gains Even as Stock Markets Crash.
I'll send you a copy at no charge. Free. You can download it after you read this letter, or I can put it in the mail to you immediately. And, for a very short time period, I'm willing to extend you 3 free months of my profitable plays and research, But you must act quickly...
Now, why would I want to do all of that for you?
Allow Me to Introduce Myself
My name is Dan Amoss.
Debt and credit risk analysis; total balance sheet review; interviews with not only the company’s managers, but also customers and the competition; context review to find the "inflection points" for the company in the overall industry...
Those kinds of things might bore you to tears.
But they fascinate me.
I even subscribe to a yawner of a magazine called Financial Analysts Journal.
No, it doesn't come with a centerfold or a free pencil sharpener.
Considering the fund I used to research for now manages close to $1.55 billion, being that much in love with details pays off. It's also why I agreed to join the team over at Agora Financial, an international research group with over 119,000 paid-up subscribers and an estimated combined net worth of over $14.7 billion.
But I couldn't bear to limit my recommendations to just simple "long" stock plays. Not when making money in the way I've shown you above has such a long history of making others rich...
Joe Kennedy, father of President John F. Kennedy, used this same strategy to make the Kennedy family fortune...long before any of his sons even thought about getting into politics
What's more, this same strategy for playing the downside of the market stands behind the top three most profitable market moves in history, plus 14 of the greatest stock market fortunes of all time
Former waiter Jim Fisk got so rich doing this that Hollywood made a movie about his life
Young Jay Gould used to sell hardware, until he used this strategy to become a multimillionaire – before his 21st birthday.
Market legend Jesse Livermore used this strategy to make $250,000 in a single afternoon. He did it again a year later and made $3 million. Over his lifetime, he piled up nearly $100 million using this unique approach
Fortune editor Alfred Jones launched the hedge fund industry when he founded a pool of investors who started doing this profitably back in the 1950s
Quantum Fund founder and billionaire George Soros made $1 million using this technique to play shares of Avon in the 1970s. He did it again to make $1.1 billion — in less than 24 hours — playing for leveraged gains on a crash of the British pound. And he's used it to triple the size of his hedge fund in just five years
Billionaire Paul Tudor Jones is famous for working the commodities market. But he also used this "crasher" strategy — playing the 1987 market collapse — to sock away $100 million
Even recently, three Goldman Sachs analysts played the downside of the crashing financial and banking stocks to haul in an incredible $4 billion
And 51-year-old Harvard grad John Paulson made what the Financial Times quotes one investor as calling "one of the greatest trades of all time" by playing leverage against the same crashing shares, for a one-time take of close to $12 billion!
Naturally, anything this successful makes governments nervous. Which must be why they've tried at least three times to outlaw this way of making money.
But with the mandated filing of "100-F documents," not only is this strategy perfectly legal, but it's easier now than it's ever been. Especially with the help of the simple system I've developed. I can show it to you in the free copy of Five Steps to Lock in Triple-Digit Gains Even as Stock Markets Crash I want to send.
There's something more I'd like to do for you, too.
Every week, I do all this homework for a small group of interested individuals. I dig into the reports companies have to file. I also dig into their shareholder communiqués...between the headlines...and deep enough into the markets to find a steady stream of these kinds of money-multiplying opportunities.
I run everything I find through my five-part system. Then I share my research with this small group every week in the alerts I send. Each alert is full of all of my analysis and my short, detailed, and easy-to-follow recommendations.
I'd like to start sending you these same valuable alerts every week. And as soon as possible, especially when you think about what some of America's top investors are already accomplishing right now, following this kind of market approach...
Andrew L. from California just used this same approach to falling stocks to sock away gains of more than 1,000% in less than a year. Michael Brandt, also from California, just did this and made 300%
J. Kyle Bass does this and has made back over 527%. He drives a $200,000 Porsche and takes vacations on private islands. He says, right now, we're looking at a "once-in-a-lifetime, low-risk, incredibly high-reward" opportunity to put this strategy to work
Daniel Loeb, a New York executive, says he's up “only” about 160% using this strategy so far. Of course, Loeb also manages $5.7 billion. Imagine making 160% even on a pile of cash a fraction of that size...in a market that's leaving most amateurs baffled about what to do.
Again, I use a very careful five-part system to find my recommendations. I show you how it works in the free copy of Five Steps to Lock in Triple-Digit Gains Even as Stock Markets Crash I'll send, just as soon as you finish reading this letter and give me your permission.
And then I want to introduce you to the brand-new research service I mentioned.
I call it the Strategic Short Report. This same meticulous five-step system is the core of how it works. But it shares all my other ongoing research too, just so you're never left wondering how I come to my recommendations. By the way, we even "beta-tested" this approach for six straight months, just to make sure it could work...and it passed the test with flying colors.
Even in today's trickier markets.
The good news is that not only does it work, but with the help of "100-F documents"...it has gotten a lot easier for the handful of people who follow my research to duplicate these same kinds of results.
And as I said, every blue chip company in America is quietly forced by the U.S. government to reveal its secrets in these filed documents. When it has to reveal bad news, you can bet it doesn't exactly take out full-page ads in The New York Times.
But I can still dig out the details for you.
Then I can show you how to easily turn what we find into gains many times bigger than moves in the underlying shares...with controlled risk...and a very easy price per share.
It's all detailed in your free copy of Five Steps to Lock in Triple-Digit Gains Even as Stock Markets Crash. I'll rush you a copy as soon as you accept my special invitation to accept 3 FREE months of my research, at the end of this letter.
How well can this work?
Systematic "100-F" Gains: 400%
The Fad Diet . . .That Could've
Given You Fat Gains of 400%
Back in May 2006, Wall Street still loved NutriSystem Inc.
But I saw something different taking shape.
Looking deeper into NutriSystem's legally required "100-F documents," I could immediately tell that the company's business model was dangerously outdated for a newer, less-forgiving economy.
I sent an urgent alert to a small group of individuals...
“NutriSystem Inc. has all the characteristics of a 'fad diet' rolled up into one convenient speculation...While I don't doubt that the service has produced incredible results for many satisfied clients, this business model is highly reflective of modern American prosperity and demand for convenience...[and] convenience will be near the top of the list of household budget cuts in harder times...
"Concerns about operating expenses don't seem to be a factor, either...Wall Street is enamored with the idea that NutriSystem has a largely outsourced business model...However, the company cannot forever escape the new reality in energy pricing...Shipping costs will likely be headed up in the future."
The insiders must have agreed. In just five months, they had dumped over $100 million of their own shares. The company's CEO, a former dot-com entrepreneur named Mike Hagan, had cashed out over $82 million of his own shares in less than a year.
When the fat cats don't want to eat their own cooking, that's a bad sign.
Take a look at what happened next...
By 2007, the rest of the market started to wake up to the truth.
But you know how markets can be. Sometimes it's hard for market amateurs to let go of an idea. By September 2007 — at $55 per share — it was clear NutriSystem was still flying too high.
And it turned out that was the perfect moment to strike.
Your best move, looking carefully at the data, might have been the January 2008 NutriSystem $50 put option.
You might have paid about $5 per share to get in...and could have cashed out as high as $25.
That's a 400% gain.
Here's what you could have seen happen...
I'd love nothing more than to have you join the small, savvy group that gets my special opportunity alerts every week with my new research service, Strategic Short Report...
Make Perfect Plays,
Even in an Uneasy Market
Just to give you some idea of how well this works when we put rubber to road, here's just a glimpse of what my small elite group of readers have seen so far...
American Axle quietly squeezed in four "100-F" filings in Washington just before the Friday, May 30, 2008, deadline...and 4 trading days later, I was able to tell readers to lock in a 38% gain
When I first saw TCF Financial's "100-F Documents,” I could tell it was a turkey...even before it quietly disclosed some more bad news on May 2, 2008. Four days earlier, I had already shot out an alert to my readers, showing them how to play our put options on the shares...for a 97% gain
When Systemax's first embarrassing "100-F Documents” came out, I called for another put option play...just ahead of the company's fishy accounting "adjustment." Anybody who followed it could have made gains of 178%
The details this company buried in its "100-F Documents,” filed Monday, May 12, 2008...were exactly the same details backing a play I had recently rolled out to my small group. We're already up 78%...but I expect to see it climb a lot higher
Lehman Brothers, the fat-cat financial firm, was forced by Washington to file three different "100-F Documents” in a row this June...revealing details it never wanted to reveal. When my analysis uncovered its dirty secret, we turned that into a put option play that just closed with a gain of 216%.
Even before the first official Strategic Short Report alert went public, we saw two beta moves shoot up 120% and 130%. That's better than double your money. Twice. And that's before we even hit the streets.
I'm proud, sure.
But make no mistake. Just because my readers and I aim for bigger gains than you could get just holding stocks...that doesn't mean we play the market like it's a roulette wheel.
Why take chances, after all, if you don't have to?
Strict Rules That Help
Ensure Your Success
I've already proved my system for playing these unique money-multiplying opportunities can work. But there are rules of "conduct" I follow, too. Four very simple ones that help protect my Strategic Short Report readers from any avoidable losses. And, just as much, to make sure you get every chance to maximize every possible gain...
Rule No. 1: Minimize Risk
As I said earlier, when some people think of playing the downside of a crashing company, they immediately think of "short selling" the stock.
But this is a very risky way to bet on a falling stock. It can also be expensive. And the amount you can make is strictly limited.
What I love about put options is that you can control the risk. You can't lose more than you decide to put on the line. And you can decide how long you want to hold the options, right from the start.
The "other" key to cutting risk is good old-fashioned elbow grease. I simply do a lot more work to find the right shares to play against. It's that simple.
It has to be that way, when you're looking to act on details most companies would love to bury. That's why my readers and I start with the "100-F documents.”
But it doesn't end there. In every alert I’ll send you, I'll show you the deeper research I do between recommendations...digging deep into the numbers, asking all the questions, forcing the answers out of the data...
All before I click “Send.”
If you don't have someone doing the homework for you, I agree this isn't something to just jump into blindly. But with all the work already taken care of, you'll never need to do more than decide whether you want to jump on the opportunity...make a five-minute phone call...and read off the instructions that I'll provide.
This can easily be a safer way to make money, if you're doing what I show you how to do...both in the free copy of Five Steps to Lock in Triple-Digit Gains Even as Stock Markets Crash and in every weekly Strategic Short Report alert I'll send.
Rule No. 2: Keep It Cheap
The other thing to love about using stock options to make these moves is that you can usually pick them up much cheaper than what you're used to paying for quality stocks.
Some of the moves we've already seen were as cheap as $4 per share and less...even though, with options, you're controlling a larger portion of the underlying company's shares.
The best part about starting low like this is that it gives you plenty of room to take your gains much higher. It's a lot easier to double $5 into $10 than it is to double $50 into $100.
Rule No. 3: Aim High
The best part of doing this through options is the power of options to turn even small market moves...into much bigger ones.
Each share of an option can be like owning 100 shares of the related company. Even though you're paying much less per share to get in.
That can take a small change in the price of a stock and magnify it into gains as high as 10 or 15 times larger. Sometimes even greater.
With options, that's true whether you're counting on a stock to go up or go down...as I've shown you so far in this letter...and as I show readers of my new Strategic Short Report in our weekly market alerts.
Let me welcome you into our circle of opportunity and you'll quickly see what I mean. By the way, if I don't come through the way I've promised today, it’ll have cost you nothing to give my system a try.
And finally...
Rule No. 4: Keep It Easy
Pros love this strategy. Billion-dollar hedge funds use it all the time.
But that doesn't mean doing this has to be difficult. With my new service and our weekly research alerts, it doesn't matter if you've never made an options play on a stock before.
I walk you through it, with every recommendation.
First, I explain why we're considering each move. Then I tell you exactly what you would want to repeat in a phone call to your broker.
Start to finish, no alert will take you more than 10 minutes to read...or five minutes to put into play. My system makes each move thorough.
But no more thorough than we need to be to get the job done.
Obviously, I do all the footwork for you. I dig up everything we need to know about an upcoming opportunity, using the "100-F documents" and whatever else in my analysis that I can get my hands on.
With each alert, you read my summary and then decide if it's for you.
It's that simple.
You'll also get started with the easy-to-follow primer I send every new member of our little circle, Five Steps to Lock in Triple-Digit Gains Even as Stock Markets Crash.
It lays out my system for you in plain terms. And then you're up and running, ready for your first Strategic Short Report alert in no time flat.
There's only one thing I'll ask from you in return.
And that's that you'll let me know if you're ready to accept my invitation soon. Because right now, I believe there's never been a better time for my strategy to work...
Easily the Richest Time in History
Lots of market amateurs — and even pros — are worried right now about where shares are headed. Given the hype and the headlines, I don't blame them.
But the fact is what spells a crisis for some spells opportunity for others.
Especially for my Strategic Short Report readers.
I'm watching dozens of key moves right now...connected with the next wave of credit blowouts...an explosion of credit card debt and a coming student loan lending crisis...recession-vulnerable businesses...
Any one of them could yield the next wealth-tripling move.
I'd hate for you to miss out. Let me start by sending your copy of Five Steps to Lock in Triple-Digit Gains Even as Stock Markets Crash immediately. Inside, you'll find out...
The one secret number that exposes companies about to bleed cash
How to tell when company "fat cats" have tried to fluff up share prices
How companies fake sales...and the easy filter I use to catch them
The one big lie "blue chips" love to tell and how to gain when it gets found out
Plus more...
I simply can't give you the full details of my five-part system here. That wouldn't be fair to my friends and paid-up subscribers in the Short Report inner circle.
But you can see everything in the free report I'll send to get you started. What's more, even if you ultimately cancel the service for a full refund, I'm going to ask you to just keep the report for yourself. You'll have the first 90 days to decide. So feel free to take your time.
Just don't take too long. Because I'd hate for you to miss out on the next opportunity I have lined up for my Strategic Short Report readers...
The "Other" Way to Triple
Every Dollar Before 2009
I'm convinced this next move is at least a 200% gain in the making.
And I expect it to play out quickly over the weeks ahead.
This one is a private lender — not a bank, exactly — that takes shareholder money and invests it in loans to small businesses. For five decades straight, it's been a solid company.
But that's changed.
See, I've been digging into this company's latest "100-F Documents"...and it's clear to me that, like the big banks and financial firms, this private business lender is bogged down with piles of small business loans that are at least as toxic as the "subprime" loans that started bringing down other financial stocks last summer.
In other words, just like the greedy real estate lenders, this company stuck its neck out and gave piles of cash — billions of dollars — to risky small companies that will get slammed during the current rocky economy.
Businesses that, by the way, might never have gotten a business loan from any other bank. Even in the best of times. Worse, most of these mini "investments" are locked into consumer and service sectors. And many of them are already taking a recessionary pounding, financially.
Those losses get passed up to this lender.
And when this news finally hits Wall Street, I'm convinced this otherwise highly respected firm is going down for the count. When it does, my Strategic Short Report readers will have had the chance to put my put option recommendation in place. The same move, of course, you can read about immediately in a second free report I want to rush you.
It's called The Single Best “Short Report” Play in the Market Right Now.
It reveals the name of this next company we'll play. And it's yours at no charge. Just to thank you for giving my new weekly urgent alert service, Strategic Short Report, a FREE try for the next 3 months...
So let's run through this invitation just one more time...
What You'll Get
When You Join Us. . .
Too many Strategic Short Report readers acting on the same information would make some of my recommendations move too quickly. And that wouldn't be fair to paying subscribers.
So I'm allowing only the next 1500 people I hear from a chance to get in at this time. I may open that circle up again in the future, but we want to do this right.
So for now, the limit stands firm.
If I hear from you in time for you to qualify to get in, the first thing I'll do is immediately rush you a copy of Five Steps to Lock in Triple-Digit Gains Even as Stock Markets Crash.
This is your thorough primer on how to get started.
It immediately gives you everything you need to know about my system and how it works. All in simple steps and plain language. You'll find it a clear, easy read. With answers to every question you might have about how this works.
I'll also include a free copy of the second free research report we talked about, The Single Best “Short Report” Play in the Market Right Now — which immediately gives you my newest research on a recommendation I'm convinced could get you started with a gain of at least 200%.
Then I'll add you automatically to my list for receiving weekly Strategic Short Report alerts. These will arrive in your e-mail inbox once a week, usually Friday, but sometimes earlier, if the news warrants it.
In each alert, I'll name all the companies to watch...I'll catch you up on what's happening with all our current plays...and I'll give you a full picture of what we're looking at next.
Some plays will work out very quickly. Others we'll take our time with as they evolve. Either way, I want you to be ready to act as soon as you get my reports. Each time, I'll give you the exact "action to take" phrase you can share with your broker.
All you have to do is pick up the phone, dial, and read the recommendation verbatim. Then sit back and let the move play out. I’ll send you every piece of news and word of every market shift on every open position.
There's one more thing.
Once a month, I'll also send you a full new research report on a favorite play. This is on top of your weekly alerts, at no extra charge. It's included with your subscription. And each of the extra monthly reports will give you an even fuller profile of our latest favorite plays.
And of course, you can access all of this — anytime you like — archived on the private members-only Strategic Short Report Web site. I'll send you a private password immediately, just as soon as you accept my invitation.
How much should something like that cost you?
$10,000 Worth of Research
at a Fraction of the Price
As I said, I'm not the only guy doing this work.
Others track this side of the market. And do a very good job, too. But as I'm sure you can imagine, doing this kind of research doesn't come cheap.
To get diamonds, you've got to dig.
And of course, I happen to know that at the top-ranked private fund where I got my start, we shelled out $10,000 each year for the research service we used.
But Strategic Short Report won't cost you $10,000.
In fact, I have a subscription to a research service that costs $8,000 per year. But that's a lot more than I'll ask from you before you can join our inner circle of subscribers.
See, the fact is just by inviting a certain number of members into these opportunities, my publisher and I are able to spread out the costs for the research service...for producing and laying out my reports...for even my own fees as head analyst.
That makes it possible to let you into a Strategic Short Report slot right now for just $995 per year. And keep in mind that includes a special opportunity alert EVERY WEEK for a full year.
But it gets one step better than that.
For an extremely limited time, you can have a 3 FREE months with your membership to Strategic Short Report.
That means you pay just $750 for a full year of profitable research - saving yourself an extra 25% off the normal membership fee. But you must act immediately, as this discount will disappear right at midnight on Thursday.
Plus the extra monthly research reports you'll also get each month...your free copies of Five Steps to Lock in Triple-Digit Gains Even as Stock Markets Crash and The Single Best “Short Report” Play in the Market Right Now...and unlimited access to the members-only Strategic Short Report Web site.
If you're not a subscriber already, I'll give you a FREE subscription to the highly praised and widely read Daily Reckoning. On top of that, you'll get elite access to the Agora Financial Executive Series. The Executive Series is a members-only dispatch of two profit-laden e-mails, the Rude Awakening and the 5 Minute Forecast. These dailies will alert you to specific investment research and recommendations from across the entire world of investment opportunities that Agora Financial covers.
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Try Strategic Short Report with no risk for the next 90 days. If you're not happy with my research for any reason, just tell my publisher and he'll immediately send you a full refund. Every penny. No questions asked.
You'll keep everything I send. And if you’re not satisfied after 90 days, just tell us and you'll still be entitled to a full refund on the remainder of your subscription. I'm sure that sounds like a square deal.
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Hidden Government "100-F Documents" That Let You Predict Which Stocks Will Go up or Down
Posted by
kandy
at
1:39:00 AM
1 comments
Labels: Stock
UNEMPLOYMENT SURVIVAL GUIDE
Judy Stark, the Homes and Garden editor for the St. Petersburg Times , writes that it is a “sign of the times” when a local county-sponsored workshop on vegetable gardening has suddenly hit the 200-person capacity of the room.
She says that this means, “there is great interest in growing your own food so you know what’s in it or on it, and avoid high prices at the grocery store.”
Fabulous! So now we know that the economic miracle that Alan Greenspan at the Federal Reserve was supposed to be delivering to us with all of that excessive creation of money and credit to finance the creation of permanent government programs, permanent inflation in the money supply, permanent inflation in consumer prices and permanent inflation in government employment has now required some people to take up subsistence farming to survive!
And it may be Canadians becoming small-scale farmers again, too, as Forextv.com reports that “Economists Say Canadian Labour Force Drop Shows Job Boom Is Over”, which is the reaction to a CEP News report that “55,200 Canadian jobs disappeared in July, the largest monthly drop since the early 1990s. The unemployment rate actually shrank, dropping a tenth of a point to 6.1% as an even larger number of people – more than 74,000 of them – dropped out of the labour force during the month.”
The numbers are similar in Quebec, as the unemployment rate there “edged up by two ticks to 7.4% while in Ontario, the rate fell to 6.4% from 6.7% in June as 42,000 people left the labour market.”
It makes you wonder how people “left the labor market”, as this would imply that their families did not constantly hound them and harass them to get another job right away, right now, now, now, now, and how me just sitting there on the couch in nothing but a pair of underwear and sucking down yet another bottle of cold brew proves that “Mom was right! You are a terrible, worthless, lazy father who doesn’t care about us!” and I am screaming back at them, “I could have told you that, you stupid damned kids!”
As I interpret it, Forex.com figures that the government is gearing up for a frontal assault on the people, where they will herd us mercilessly into processing facilities to turn us into Soylent Green, as is suggested by the fact that “A gain of nearly 30,000 public sector positions partially offset the loss of 95,000 in the private sector.”
In fact, “Since July of 2007, employment in the public sector has grown by 6.1% compared with +0.5% for the private sector.” Yikes!
All of this unemployment must be impacting demand for goods and services, which may be what prompted Jim Sinclair of jsmineset.com to ask a lot of questions, including “Do you really believe that present inflation is demand driven?”
This is the crux of the argument by Mark Gertler, a professor at New York University, who unbelievably writes to the Financial Times to take issue with the whole idea “that monetary policy is the root cause of the recent increase in the relative prices of energy and food.” Huh? Astonishingly, he says that concentrating on the increases in the supply of money “dismisses the critical non-monetary factors, including increasing commodity demand from strong capacity growth of the global economy, coupled with short-run supply constraints and various government distortions.”
To this, I laugh out loud and make rude noises in his direction as if someone farted, which makes me laugh out loud some more, and so I make more farting noises, which makes me laugh even louder, and then I am laughing so hard that I actually fart for real, which makes it even FUNNIER and pretty soon I am laughing so hard I can’t catch my breath, which is good because it smells like someone farted.
Well, I soon realized that the farting thing was not my most brilliant attention-getting device, as I can see the security guards gathering to plan their rush upon my position and hustle me out of here.
So, not wasting another precious moment and obviously without waiting to be asked why I am frantically waving my hand in the air like a lunatic and shouting, “Hey! Hey!” over and over, I instead shout out, “Hold on there, doofus! Demand is but desire made manifest, and there is no limit on desire! And if you don’t believe me, take your New York University butt over to my house and ask my family something like ‘Hey, how would you like a nice burrito?’ and you will notice they all say they would love to have a burrito!
“Then ask them ‘Hey, how would you like a new car?’ and they will all say that they would love to have a new car AND a burrito! And when you ask them, ‘And how are you going to pay for this stuff, you greedy little bastards?’ you will learn the ugly fact (as they have learned the ugly fact), that without the money to finance infinite desires, ‘demand’ doesn’t really mean squat.
“And so you can also forget about ‘capacity growth’, too, because without the money to fuel the demand growth, there ain’t no stinking capacity growth, and thus there won’t be any ‘short-run supply constraints’, although there will always be ‘various government distortions.’”
In short, the availability of money (the increase in the money supply) must come first if you are going to get systemic inflation in prices, and not the other way around, which you would think some hotshot economist from New York University would know!
And I’ll bet he doesn’t know that gold and silver are the “investment of choice” in response to such monetary insanity, either, so he’ll get his comeuppance, which pleases me greatly, for some reason! Hahahaha!
Posted by
kandy
at
6:52:00 AM
1 comments
The Word on the Street
A lot to talk about today...
The “word” on the street is “subprime.” According to the American Dialect Society, it’s the most important new word this year. Along with “jingle mail,” “exploding ARMs” and “liars’ loans,” it came into the popular language recently...and now everyone uses the term “subprime” to describe anything that is cheap, low down, or deceitful...says the ADS.
We also want to talk about the collapse of gold and commodities...
About the coming surprise to investors...
And more about the fraudulent economic model America has been flowing for the last quarter century...
But first...something important:
“You’ve ruined my summer,” said Elizabeth over the weekend.
“Oh. How’d I do that?”
“You’re just such a wet-blanket...such a fuddy duddy. You never want to go out and have a good time.” More about that below...
But back to the news. On Friday, the meltdown of gold and commodities continued. Oil slipped $1.35. The commodities index, the CRB, fell below 500. The dollar rose to $1.46 per euro. The pound is losing value faster than at any time in 37 years. And get this – gold dropped $21 to close below $800, at $792.
So, what can we expect? Will everything go back to where it was in 2002? After climbing the mountain, will Jacks and Jills all over the world merely tumble down the other side? Oil – will it go back to where it was before the Bush administration attacked Iraq – at about $25 a barrel? Will the dollar go back to where it was just after the euro made its debut 10 years ago – at 88 cents? Will gold roll all the way back to where it was when George W. Bush was first elected president – at about $262 an ounce?
And maybe we’ll all be 10 years younger too!
Nah, too bad...but it doesn’t work that way. Every day, everything ages...changes...twists...corrupts...wrinkles...and decays. Nothing wrong with that, of course...that’s just the way it works. But it’s why, when you get a house, a wine, a stock or a woman, you want one that ages well – one that time improves.
But let’s not get distracted...
The slump in the U.S. continues. Foreclosures are still rising in California.
There’s “blood in the street,” says Barron’s of America’s most famous street, located in lower Manhattan.
Fortune tells us that the “next wave of mortgage defaults” is coming.
And down in Flawda, the Miami Herald reports that the unemployment rate has risen over 6% – its highest level in 13 years. Florida, along with California and Nevada, is where house prices are falling fastest. Many of the people who used to work in construction, or real estate, or installing granite countertops, or financing houses are now looking for work.
And here, we pause a moment to remember what a joke of an economy we Americans have created. We mentioned it last week. Fortune magazine reported a study that compared Germans to Americans. It found that Americans did not work more hours, after all. We work about the same number of hours as Europeans, generally. But Americans tend to do their work at low-skill, service jobs – like flipping hamburgers or cleaning driveways. Germans work at real careers, cook their own hamburgers and clean their own driveways. Germans put in fewer hours “on the job,” as a result.
But in the curious way in which statistics become confused with knowledge, the statistics on hamburger joint revenue get fed into the figures for GDP growth. Then, it looks like the U.S. economy is doing better than the German economy, even though both groups may be eating exactly the same number of hamburgers. And then, too, U.S. economists and politicians believe they have found the secret to economic success; because the US model puts people to work...and boosts GDP growth. Soon, they are giving advice to the Chinese and wagging their fingers at the Europeans. It’s only later, when the credit runs out and their service industries go broke...that they get the punch line – good and hard. Then, they have to cook their own hamburgers again.
*** Occasionally you come across a small insect – a moth or a mosquito – fossilized in a drop of amber. The insect landed on bit of sticky tree say, millions of years ago, and then was covered by the flowing sap, which later hardened into amber.
The prices you see in today’s markets reflect all the latest ideas, information, prejudices and hallucinations of investors – the sap at that moment. The next moment, they are history, past tense...and the investor, like that poor bug – is stuck. The sap looks attractive...but once he lights down on it...he’s finished. He gets whatever he has coming.
The sap always keeps flowing...and saps are always surprised by it. So where is tomorrow’s surprise coming from? There are two possibilities we can see. Either the global slump turns out to be much more punishing than investors expect. That is, instead of a soft landing for the world economy, there will be a smash-up that sends equities, property, and bonds a lot lower than people expect – with trillions of dollars in capital losses, tens of millions of families bankrupt, and a recession that is surprisingly deep and dreadful.
Another surprise might be that the reports of inflation’s death were exaggerated. Inflation may not be dead at all – but just taking a rest. Oil may be going down, but it’s not likely to go back to where it was in 2002. And since oil is so essential to the modern economy, higher priced oil is likely to continue working its way into consumer prices all over the world. And maybe China, India and Russia don’t fall into such a deep slump that they stop using so much oil and other raw materials. And maybe their labor costs continue to rise at 10% per year – which then pumps up their export prices at double digit rates.
And, perhaps most important, neither the people nor the theories in modern central banking have changed. They are committed to a system with the dollar as its foundation...a system that ALMOST guarantees inflation.
We don’t know what will happen – every day is a new day, after all – but we know how these central bankers think. And the more a recessionary downturn grips the world, the more Bernanke & Co. will fight against it. And they fight dirty – with counterfeit money.
It’s the “Endgame for Fannie and Freddie” says this week’s Barron's . And the weekend news brought word that the “US Likely to Recapitalize Fannie and Freddie.” We expected nothing less. The two lenders are said to be worth about a negative $50 billion each – for a grand total of $100 billion. Of course, the feds don’t exactly have a spare $100 billion lying around. But so what...they’ve got plenty of funny money. As the endgame comes for more American businesses and households, you can expect to see a lot more funny money passing itself off as the real stuff.
So which surprise is it likely to be? A deeper deflationary slump? Or a wilder ride on the inflation roller-coaster?
Both is still our guess.
Buy gold on dips; sell stocks on rallies. We don’t have much of a rally in the stock market, but we have a nice dip in gold. Take advantage of it...and buy gold with your pocket change. See how here .
*** “You are such an anti-social fuddy duddy...” said Elizabeth. “We are here in a country where we’re not related to anyone...we have no natural ties with anyone. And we don’t want to live like hermits cut off from the rest of the world. We need to get out and socialize. That’s what makes like worth living – or at least, it’s part of what makes life worth living.
“And since we’ve decided to live here...where we’re not automatically or naturally part of the social scene – because we have no old friends or family here – we have to make a special effort to fit in. We have to work harder than most people just to have an agreeable social life, with friends and acquaintances whose company we can enjoy...
“But all you want to do is to write your Daily Reckonings , paint shutters and work on your various projects. You know perfectly well you actually enjoy going out...but you don’t like being interrupted. And I feel like I’m interrupting you or imposing on you whenever I want to invite people over...
“It’s just not a very pleasant way for us to live together. We’re at odds. I know you have different ideas about how to live...but this is an important issue. We’re going to be here – I guess for the rest of our lives. The children are leaving. It’s just going to be the two of us. And we’re going to be pretty lonely if we don’t have friends in the area...”
By nature, your editor is only interested in two things – work and love. If he has his work to do...and his family around him...he is content. But there is more to life, or so they say – and even he feels a certain hollowness when the family grows up and leaves.
On Saturday, we went to a “dinner in white,” on the night of the Assomption of the Virgin. We were instructed to bring a picnic basket, a folding table and all the accoutrements of an elegant dinner – including candlesticks.
Your editor was a bit grumpy about it...reluctant to leave his work and his family to spend the evening with strangers. But he set off without complaint.
We drove down small, oak-lined roads for about 15 minutes. Then, we saw a group of cars parked in a field and a group of people – all dressed in white – standing near a stone farmhouse. A young man appeared as we parked, offering to carry our table and chairs. These were placed in a row with others – out in a field behind the house. The table cloth was laid on...candlesticks set up...bottle of wine opened...
The group of people in white greeted us...we chatted with the few people we knew and enjoyed a glass of champagne. Then, after an hour or so, when a full moon was rising over a pond in the distance...and a haze appeared over the fields, we took our places at the table. Elizabeth and I sat at our table, next to a good-looking youngish couple. Then, our host spoke:
“All men stand up. Shift from where you are now down to the next row of tables.”
So, as it turned out...we enjoyed a delightful, candle and moonlight lit dinner with a woman we had barely ever met. There were about 50 or so people in the group, but out in the dark of night, at our little portable tables, each group of 4 dinners was surprisingly cozy. Even more surprising, the Virgin herself must have smiled on the whole assembly. Almost every night in August we have had wind or rain – usually both. Saturday night, whilst we dined under the moon and stars, there not even a breeze...and not a cloud in the sky.
The woman opposite us was from a from a large family – with a big farm nearby. Her husband had developed the farm into a place for corporate retreats – with hunting...fishing...and team-building obstacles.
“Which one is your husband?” we asked, looking around.
“Oh, he died 4 years ago in a car accident.”
“Very sorry to hear it.”
“Well, life goes on. Is your wife here?”
The conversation was unexpectedly sweet, witty and intimate. We were still at our tables at midnight. Then, the children built a roaring fire. We stood around, talked...and drank...until it was time to go home.
Elizabeth was right, of course.
Posted by
kandy
at
6:46:00 AM
1 comments
The 5 Best Ways to Invest in Gold
The ultimate dollar hedge investment will always be gold. Investing in gold through ownership of the metal itself, mutual funds, or gold mining stock provides the most direct counter to the dollar. As the dollar falls, gold will inevitably rise. In a moment, we'll provide you with many ways for positioning your portfolio to profit from a bull market in gold. For now, we emphasize the high probability of gold's future. The real potential for profits in the coming years and decades is not going to be found in the traditional American blue chip industry. That is a financial dinosaur that can no longer compete in the world market.
The future growth is going to be seen in gold. The world economy may remain off the gold standard, but ultimately the tangible value of gold as the basis for real value-whether acknowledged by central banks or not-will never change. Historically, this has always been the case, and it always will be. In other words, we are on a "gold standard" in spite of the popularity of fiat.
In the following paragraphs, you'll discover five ways to invest in gold. Based on your level of market experience and familiarity with products, one of these will be appropriate for you.
You have many choices.
1, Direct ownership. There is nothing like gold bullion, the ultimate expression of pure value. Historically, many civilizations have recognized the permanence of gold's value. For example, Egyptian civilizations buried vast amounts of gold with deceased pharaohs in the belief that they would be able to use it in the afterlife. Great wars were fought, among other reasons, to pillage stores of gold. Why the allure? The answer: Gold is the only real money, and its value cannot be changed or controlled by government fiat-the underlying reason for governments to go off the gold standard, unfortunately.Gold's value will rise based on the pure forces of supply and demand, no matter what Mr. Greenspan decrees regarding interest rates or greenbacks in circulation. The big disadvantage to owning gold is that it tends to trade with a wide spread between bid and ask prices. So don't expect to turn a fast profit. You'll buy at retail and sell at wholesale, so you'll need a big price jump just to break even. However, you should not view gold as a speculative asset, but a defensive asset for holding value. Since your dollars are going to fall in value, gold is the best place to preserve value. The best forms for gold ownership are through minted coins: one-ounce South African Krugerrands, Canadian Maple Leafs, or American Eagles.
2, Gold exchange-traded funds. The recent explosion in exchange traded funds (ETFs) presents an even more interesting way to invest in gold. An ETF is a type of mutual fund that trades on a stock exchange like an ordinary stock. The ETF's exact portfolio is fixed in advance and does not change. Thus, the two gold ETFs that trade in the United States both hold gold bullion as their one and only asset. You can locate these two ETFs under the symbol "GLD" (for the streetTRACKS Gold Trust) and "IAU" (for the iShares COMEX Gold Trust). Either ETF offers a practical way to hold gold in an investment portfolio.
3, Gold mutual funds. For people who are hesitant to invest in physical gold, but still desire some exposure to the precious metal, gold mutual funds provide a helpful alternative. These funds hold portfolios of gold stocks-that is, the stocks of companies like Newmont Mining that mine for gold. Newmont is an example of a senior gold stock. A senior is a large, well-capitalized company that has been around several years and has a profitable track record. They tend to own established mines that produce known quantities of gold each year. For many investors, selection of such a company is a more moderate or conservative play (versus picking up cheap shares in fairly young companies).
4, Junior gold stocks. This level of stock is more speculative. Junior stocks are less likely to own productive mines, and may be exploration plays-with higher potential profits but also with greater risk of loss. Capitalization is likely to be smaller than capitalization of the senior gold stocks. This range of investments is for investors whose risk tolerance is broader, and who accept the possibility of gold-based losses in exchange for the potential for triple-digit gains.
5, Gold options and futures. For the more sophisticated and experienced investor, options allow you to speculate in gold prices. But in the options market, you can speculate on price movements in either direction. If you buy a call, you are hoping prices will rise. A call fixes the purchase price so the higher that price goes, the greater the margin between your fixed option price and current market price. When you buy a put, you expect the price to fall. Buying options is risky, and more people lose than win. In fact, about three-fourths of all options bought expire worthless. The options market is complex and requires experience and understanding. To generalize, options possess two key traits-one bad and one good. The good trait is that they enable an investor to control a large investment with a small, and limited, amount of money. The bad trait is that options expire within a fixed period of time. Thus, for the buyer time is the enemy because as the expiration date gets closer, an option's "time value" disappears. Anyone investing in options needs to understand all of the risks before they spend money. The futures market is far too complex for the vast majority of investors. Even experienced options investors recognize the high risk nature of the futures market. Considering the range of ways to get into the gold market, futures trading is the most complex and, while big fortunes could be made, they can also be lost in an instant.
We cannot know, predict, or even guess, when the demise of the dollar is going to occur, or how quickly it will take place. But we do know it is going to occur. The tragic mismanagement of monetary policy by the Fed over many years has made this inevitable.
Removing the U.S. monetary system from the gold standard was not merely a decision of short-term effect. Nixon may have seen the move as a means for solving current economic problems, but it had long-lasting impacts: trade deficits, growing federal debt, and the ability to print money endlessly and build a new credit-based economy. Internationally, the decision by the United States virtually forced all other major currencies to also go off the gold standard.
Any investor who views the economic situation broadly-both domestically and internationally-can see that trouble lies ahead. We have delayed the inevitable because China is a partner in our monetary woes.
The Chinese are building their own debt on the dubious foundation of the U.S. dollar, and other Asian economies have been forced to go along for the ride. When the dollar falls, many other countries will suffer as well. The offset, logically, is found in commodities. Investing in oil stocks makes sense, for example, because the price of oil is rising and as it becomes more difficult to drill oil those companies that own drilling and exploration operations will benefit. It makes sense to invest in other commodities as well.
The tangible asset play is clearly where future value is going to lie. With China's never-ending need for coal, iron ore, tungsten, copper, oil, and other metals, the future of tangible markets is the bright spot in the gloomy financially based economics of the world.
Leading the charge is gold. It is ironic that monetary policy follows a predictable pattern.
Governments overprint money and their currency crashes. Inevitably, they always return to gold, but often at great expense and with considerable suffering. We find ourselves in another one of those moments in time where irresponsible monetary policy has put us at risk. But we don't have to simply hold on and wait for the demise of the dollar; we can take action now because that demise is great for your portfolio-if you position yourself in tangible assets rather than in empty fiat promises and the bizarre economic premise of U.S. monetary policy.
Goods and services can be paid for only with goods and services. Currency is nothing but an IOU, a promissory note that is not backed up with any tangible value. Once we reach our national credit limit, monetary policy will be forced to retreat. When that happens, traditional investors and their savings accounts are going to be hit hard. The beneficiary of the falling dollar will be the investor whose holdings emphasize tangible value of goods: resources and precious metals.
Every danger to one group of people is invariably an opportunity to another. It all depends on where you position yourself. Those investors positioned in dollar-based investments are going to suffer the loss of purchasing power when the dollar's value disappears. Those who have moved their investments to higher ground will benefit from the change.
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The Power of “100-F” Documents
They're just people like you and me doing this.
Some are retired. Others are still working.
They're in their 30s and 40s. Or 60s and older.
What they've all discovered is a surprising way to use government-mandated "100-F documents"...to reliably predict where and how far Wall Street's best-known stocks could go.
What's more, they're using that information to post 400–600% gains on those moves. Surprisingly fast. And even in down markets. Over and over again.
Is what they're doing illegal?
It can sure sound like it, since they're often using information not immediately available in the mainstream press. Yet the U.S. government is behind this strategy 100%.
Two days after seeing the government "100-F document" filed on Oct. 24, 2007...52-year-old David O'Connor was able to use what he knew to sock away $41,891
On Feb. 21, 2008, a certain "100-F document" was filed in Washington. Five trading days later, 47-year-old Gerald Lavine pocketed profits of $51,783
Roger Barnes of Colorado got more than a glimpse of the "100-F document" filed on Oct. 31, 2007. Six trading days later, he locked in a stunning $237,000 gain.
And the surprising truth is anyone can do this.
I lead a small group of individuals who are proving this right now.
Every week, this group and I share details pulled from what I collectively call "100-F documents" — even though most people know these documents by a few other names. I'll show you what we're finding in these documents in just a second.
I'll also show you how we're piling up winning market moves using a special system I've developed to take the best possible advantage of the details we discover.
For example, as I write this, we just locked in a 216% gain.
Bruce Bedford, one of the members of my group, just shot me a note...
"Dan, I sold my position today at $14...up 194% from $4.75 in 42 days...I'm delighted with the outcome...More, please!"
Believe me, we're just getting started.
But as I said, these quietly filed government-mandated "100-F documents" have a long history of revealing hidden details and golden opportunities. With some very impressive results...
Bob Gerry used an options move, five days after a key "100-F document" filing, to lock in a one-time gain of $254,944
H.B. Smith waited only 15 trading days after he saw another "100-F document" filing...to pocket $84,000 on the company that signed the papers
Cindy Feeback, an accountant in Houston, made $173,518 just 13 trading days after the company she was watching filed its "100-F documents" in D.C.
What's also surprising is how consistently effective this can be. In fact, even during the current calendar year, you can find at least 58 specific dates tied to specific "100-F"-driven opportunities.
Tuesday, July 15...Tuesday, July 29...Wednesday, July 30...Monday, Aug. 11...Thursday, Aug. 14...Friday, Aug. 29...Tuesday, Sept. 2...the list goes on.
On or very close to these dates, publicly traded companies across America are required by federal law to quietly file these confessional "100-F Documents"... full of buried facts and deep secrets the same companies don't dare share in their press releases and public puff pieces.
And reading these documents can be like reading a blueprint of tomorrow's financial headlines, every single one of them revealing things that could start driving the share price in one direction or another, provided you know how to read the details.
What I've created is a five-step system for doing exactly that. In a moment, I'll show you how it works. Including how you could use what you'll discover to make — over and over again — as much as double, triple, or even five or six times your money.
And I'll explain how you're uniquely situated to grab a personal 3 FREE months of "100-F" profit plays for an extremely limited time period...
But first, you're asking...
What Exactly Is a "100-F document"?
Imagine hearing the secret confessions of top CEOs...
Sitting behind closed doors at their boardroom jawing sessions.
Imagine knowing — before millions of American investors — exactly what the top-dog insiders at America's best and biggest companies are about to do with their money.
Normally, that's privileged information.
But on certain dates — at least 58 times per year — companies across America are ordered to file some of their deepest business secrets in these "100-F documents."
Two weeks after a certain company's "100-F documents" got filed in Washington, Ray Barker was able to make an options trade that made him $138,000
Aaron Broadwater, 61 years old and already once retired, added $135,000 to his nest egg...just 4 days after seeing another company's carefully filed "100-F documents"
On the day 49-year-old Matt Roche saw this "100-F document" filed, he quickly made an options trade on the move that netted an amazing $352,299.
The thing is, what you see companies reveal to the press is rarely as stark and honest as what you can pull from deep in the pages of these "100-F documents."
In fact, the gap between when they file these papers...and when the details get leaked to the press...can even give anyone a "loophole" opportunity to get the jump on opportunities, days before other investors.
As I'll show you in just a second.
Some knowledgeable market pros even call these documents "prediction papers"...because they realistically expose many of the secret plans, risks, and challenges for a stock over the coming year...
Why?
Because whereas company press releases get churned out by slick marketing pros...the "100-F documents" get filed under strict legal scrutiny. There's little wiggle room for insiders and fat cats to fudge the truth.
Recent takeovers and mergers...secret business deals that have yet to happen...hidden company plans...big successes, mistakes, pending lawsuits...even executive contracts gone sour...they all come out in the wash when a "100-F document" gets filed.
When the news is good, insiders don't mind if you get to take a peek.
When the news is bad, they wish you couldn't. But by law, you get to anyway.
And either way, you can turn that information into huge gains, once you know how.
The five-step system I'll show you is one way to do precisely that. I believe it's the best possible way, too. With reduced risk and highly predictable results...to the tune of four or five times every dollar invested.
Even if the company shares we're talking about are going down, rather than up.
Let me show you what I mean...
Systematic "100-F" Return #1: 600%
How a Bank's Reluctant Confession Could
Have Made a Few Smart Americans Very Rich
During the property boom, mega-bank Citigroup got cocky.
It loaded up on loans borrowers couldn't pay back. Then, based on the idea that housing prices don't crash, it packed up those loans...on the bet it could make billions more dollars trading them on Wall Street.
But it turned out Citigroup bet wrong.
As late as June 2007, you wouldn't have known it. Everybody figured Citi — one of the world's largest banks — had a pile of assets. That's what upper management wanted us all to believe, too.
At the time, Citi shares still traded above $50.
Which is why almost nobody knew Citigroup had secretly sat on a ticking time bomb...
See, while the press spin is often polished and positive...the government-mandated "100-F documents" can reveal the truth. And in this case, that's exactly what happened.
I studied those same details, ran them through a five-step system I've developed for evaluating these kinds of opportunities, and then shot a message to a very small group of interested market players, saying...
"This morning, Citigroup kicked off the third-quarter earnings season with a negative earnings preannouncement. Citi expects third-quarter net income will fall roughly 60% from a year ago, blaming 'dislocations in the mortgage-backed securities and credit markets, and deterioration in the consumer credit environment�...
"I see a value trap in bank stocks, as most of the analysis I read doesn't extend much beyond the parroted mantra that 'Banks are cheap on a price-to-earnings and price-to-book basis.' Citi's earnings preannouncement is reminding the market that earnings and book value should be taken with a grain of salt�...
By Oct. 1, 2007, Citi had already started to unravel. If you held shares, you braced for a wave of hurt. But anyone holding put options on the play could have turned sour grapes into a solid 600% return.
Options, of course, are a way for you to control a lot of shares of a stock at once...often at a much lower cost per share...and with potential gains as much as 10 or 15 times bigger than the move in the actual company shares.
When you think a stock is about to go up, you buy call options.
When you think a stock is about to plunge, you buy put options.
Making that call can be anyone's guess...unless you've got the power of what's revealed — as required by law — in the "100-F documents" I'm telling you about.
Take a look at this...
When I first applied my system and sent out my warning, it was available to only a very small group — a handful, really — and was not something I had a way to share with the general public.
But had you seen this disaster coming, your best move could have been to call your broker and ask for the January 2009 Citigroup $40 put options. They would have cost you only about $2 per share. And by January, you could have seen them soar past $14.
That's a gain of at least 600% in just over 90 days.
Here's another example...
Systematic "100-F" Return #2: 633%
The Little Detail That Turned a
"Lemon" Stock Into Lemonade
How many times have you bought a new stereo...a new television...a new laptop...or even something as simple as an iPod...only to have a salesman wave an "extra warranty" contract in your face?
Too often, I'm sure. And there's a reason.
See, some stores barely break even unless they can force lots of these extended coverage deals on their customers. That's how it was for nationwide retail chain Circuit City.
And you could see it, just by digging deeply enough in Circuit City's "100-F documents."
It was the detail even top execs ignored, however, when they tried to woo investors with highly publicized "cost-cutting" layoffs. Wall Street watchers love cost cuts. And they pumped money into Circuit City's shares.
They started bidding up the share price — from $5 to over $30 by March 2006. Circuit City fed the mania with $1.2 billion in capital-wasting share buybacks. Then, in March 2007, Circuit City did it again...cutting another 3,400 senior reps.
What watchers didn't realize was that the "cost cuts" meant dumping the stores' high-pressure, commission-driven sales team...and replacing it with hourly wage teenage salesclerks.
You can guess what happened next.
Without the pros to push those high-priced warranties and flat-screen TVs, Circuit City's sales figures sank faster than a bag of wet diapers in a kiddie pool...slamming Circuit City's stock.
Here's what it looked like...
Too bad for you if you held shares.
But what if you could have seen this coming?
You could have taken a ride on the tidal wave for gains as high as 633%.
How? Everything you would have needed to know you could have found buried in the "100-F documents" Circuit City was required by law to file in Washington.
The system my group and I use is designed to filter for these details.
And one perfect move you could have made at that time might have been to call your broker and request the Circuit City January 2008 $15 put options. It would have taken less than five minutes "work." And you could have paid just $1.50 per share.
Here's what could have happened for you next...
By the beginning of 2008, you could have turned around and sold those same put options for $11 per share...a gain of more than 633%.
Here's another example...
Systematic "100-F" Gain: 597%
Over 597% Gains in 60 Days,
Even After "Missing Out". . .
During the property boom, E*Trade must have gobbled up mortgage-related investments like candy. But any 4-year-old can tell you what happens when you gorge on candy.
You get sick.
That's exactly what E*Trade did.
By 2005, the company actually made more on the mortgage investments than it booked in brokerage fees. There was no way this could last forever.
Anyone who looked at the "100-F documents" could see the pressure building. Sure enough, when property started to unravel, so did E*Trade's bottom line.
From June–October 2007, E*Trade's highflying shares plunged from $25 down to $15...
Even if you "missed out" on the first part of the move, you still could have jumped in by early October...to snap up the January 2008 E*Trade $15 put options.
They were going for just $2.
Less than a month later, the "100-F documents" filed by E*Trade got much worse.
It couldn't hide any longer just how much the value of the subprime loans on its balance sheet had fallen. And it was obvious to anyone who looked how much cash E*Trade suddenly needed...just to stay in business!
That was perfect timing to step in and snap up the January 2008 E*Trade $15 put options.
Here's what could have happened for you...
By the end of December 2007, you could have walked away with another solid gain of more than 597%. But hang on. Why do so many of these "100-F document" moves point toward stocks that go down...while their put options go up?
The answer might surprise you...
Why I Love "Crashers" Even
More Than Stocks That Go Up
Don't get me wrong...
I'm no stranger to using this kind of deep research to find stocks that go up.
For years, I worked as a "detail man" and key researcher on a team that ran one of the world's 10 best-ranked high-end private mutual funds (you needed at least $2.5 million just to open an account).
That fund averaged an incredible 17.6% compounded annual return from 1990–2005. That�s unmatched by most of the 7,000-plus funds out there. And plenty of those gains came from playing the typical "long side" of the stock market.
But while I cut my teeth on that research, I learned something fascinating.
I discovered that there's a little-known "loophole" that you can use to play hundreds of opportunities many market amateurs regularly leave on the table.
A loophole that can let you make quite a bit of money by simply using a system like the one I've developed to help you find gains on the down, or "short," side of the market...
The Little "Loophole" That Can
Double Your Chances for Gains
See, study after study shows that when a company's "100-F documents" share good news, the top brass of the company can't wait for that information to get leaked to the press...even before the documents get filed in Washington.
But when the "100-F documents" expose bad news for a company's shares...company execs do the opposite, filing their legally required company plans and forecasts as quietly as possible...trying to not draw attention for as long as they can.
In other words, it can take as many as four trading days or longer — on average — for negative "100-F document" details to show up in places like The Wall Street Journal and Barron's.
And according to those same studies, even though a handful of financial pros watch the filings to make their moves...the big jumps in share prices don't happen until the details make it into the mainstream headlines.
That means you and I get a window we can use to make big gains on the news.
How Big a Window?
In October 2007, one University of California study — backed by the bigwigs at Barclays� Global Investors unit — revealed that the more complicated the "100-F document" filings, the more time you have to make your play.
Here's something else...
Another study, from Pennsylvania State University, found you could track what the top dogs and insiders were doing — almost like setting your watch — around the filing dates of these secretive "100-F documents."
Just look at some recent examples...
On Sept. 5, 2007, shares of Krispy Kreme would have set you back $6.26. Sounds like a bargain for a doughnut maker that once traded near $50 — but on Sept. 6, 2007, a "100-F document" filed in D.C. revealed it could go lower. And it did, sliding to $3.24 just four days later
For nearly 14 years straight, Starbucks shares looked like portfolio caffeine...soaring to $41 per share. But a deeper look at the company's "100-F documents" revealed a slip in store traffic...and the steam was off the mug. By November 2007, shares hit $24...when "100-F documents" filed on Nov. 15 and Nov. 29 exposed more bad news. By April this year, shares hit a low of $15.66
Blue chip giant General Electric was the way to make money from the early
1960s to July 3, 2000...when you would have paid $58 per share. It's been down and dull for most of the years since, at about $38 per share by April 1 this year. On April 7, legally required "100-F documents" revealed news that sent shares falling to $32 by April 14...and below $30 by June 11, 2008.
The gap in those moves in the share price is the "loophole" that opens up. It's your opportunity to move on the shares before the tide of market investors jumps on the same trend.
And as I said, you can do that a couple of ways.
One risky way to play downturns is to "short" the stock. That means you borrow shares you don't own and keep the difference between what they're worth today and the lower price you expect them to have in the future. The risk is you could get it wrong and the shares could go up. And there's no limit to how much you could lose.
That's why I love to play these moves with put options, instead.
With put options on these downside moves, you limit the risk to only what you decide to put in. What's more, it can cost next to nothing per share for the options play. That means less on the line. But it can also mean much bigger gains. How big?
Up to 10 and 15 times the move in the underlying shares.
And sometimes more.
Imagine what you could have done, for instance, as those big stocks I just named dipped 48%...49%...and 62%. Put options on those moves might have given back as much as 480%...490%...620% or more.
What's surprising is how easy it can be to do this for yourself.
I've developed a strategic five-step system for filtering out the best opportunities. One thing I'd like to do for you immediately is rush you my newest research report, which details the five steps and tells you more about how you can tap these same events for gains.
I call this report Five Steps to Lock in Triple-Digit Gains Even as Stock Markets Crash.
I'll send you a copy at no charge. Free. You can download it after you read this letter, or I can put it in the mail to you immediately. And, for a very short time period, I'm willing to extend you 3 free months of my profitable plays and research, But you must act quickly...
Now, why would I want to do all of that for you?
Allow Me to Introduce Myself
My name is Dan Amoss.
Debt and credit risk analysis; total balance sheet review; interviews with not only the company�s managers, but also customers and the competition; context review to find the "inflection points" for the company in the overall industry...
Those kinds of things might bore you to tears.
But they fascinate me.
I even subscribe to a yawner of a magazine called Financial Analysts Journal.
No, it doesn't come with a centerfold or a free pencil sharpener.
Considering the fund I used to research for now manages close to $1.55 billion, being that much in love with details pays off. It's also why I agreed to join the team over at Agora Financial, an international research group with over 119,000 paid-up subscribers and an estimated combined net worth of over $14.7 billion.
But I couldn't bear to limit my recommendations to just simple "long" stock plays. Not when making money in the way I've shown you above has such a long history of making others rich...
Joe Kennedy, father of President John F. Kennedy, used this same strategy to make the Kennedy family fortune...long before any of his sons even thought about getting into politics
What's more, this same strategy for playing the downside of the market stands behind the top three most profitable market moves in history, plus 14 of the greatest stock market fortunes of all time
Former waiter Jim Fisk got so rich doing this that Hollywood made a movie about his life
Young Jay Gould used to sell hardware, until he used this strategy to become a multimillionaire – before his 21st birthday.
Market legend Jesse Livermore used this strategy to make $250,000 in a single afternoon. He did it again a year later and made $3 million. Over his lifetime, he piled up nearly $100 million using this unique approach
Fortune editor Alfred Jones launched the hedge fund industry when he founded a pool of investors who started doing this profitably back in the 1950s
Quantum Fund founder and billionaire George Soros made $1 million using this technique to play shares of Avon in the 1970s. He did it again to make $1.1 billion — in less than 24 hours — playing for leveraged gains on a crash of the British pound. And he's used it to triple the size of his hedge fund in just five years
Billionaire Paul Tudor Jones is famous for working the commodities market. But he also used this "crasher" strategy — playing the 1987 market collapse — to sock away $100 million
Even recently, three Goldman Sachs analysts played the downside of the crashing financial and banking stocks to haul in an incredible $4 billion
And 51-year-old Harvard grad John Paulson made what the Financial Times quotes one investor as calling "one of the greatest trades of all time" by playing leverage against the same crashing shares, for a one-time take of close to $12 billion!
Naturally, anything this successful makes governments nervous. Which must be why they've tried at least three times to outlaw this way of making money.
But with the mandated filing of "100-F documents," not only is this strategy perfectly legal, but it's easier now than it's ever been. Especially with the help of the simple system I've developed. I can show it to you in the free copy of Five Steps to Lock in Triple-Digit Gains Even as Stock Markets Crash I want to send.
There's something more I'd like to do for you, too.
Every week, I do all this homework for a small group of interested individuals. I dig into the reports companies have to file. I also dig into their shareholder communiqu�s...between the headlines...and deep enough into the markets to find a steady stream of these kinds of money-multiplying opportunities.
I run everything I find through my five-part system. Then I share my research with this small group every week in the alerts I send. Each alert is full of all of my analysis and my short, detailed, and easy-to-follow recommendations.
I'd like to start sending you these same valuable alerts every week. And as soon as possible, especially when you think about what some of America's top investors are already accomplishing right now, following this kind of market approach...
Andrew L. from California just used this same approach to falling stocks to sock away gains of more than 1,000% in less than a year. Michael Brandt, also from California, just did this and made 300%
J. Kyle Bass does this and has made back over 527%. He drives a $200,000 Porsche and takes vacations on private islands. He says, right now, we're looking at a "once-in-a-lifetime, low-risk, incredibly high-reward" opportunity to put this strategy to work
Daniel Loeb, a New York executive, says he's up �only� about 160% using this strategy so far. Of course, Loeb also manages $5.7 billion. Imagine making 160% even on a pile of cash a fraction of that size...in a market that's leaving most amateurs baffled about what to do.
Again, I use a very careful five-part system to find my recommendations. I show you how it works in the free copy of Five Steps to Lock in Triple-Digit Gains Even as Stock Markets Crash I'll send, just as soon as you finish reading this letter and give me your permission.
And then I want to introduce you to the brand-new research service I mentioned.
I call it the Strategic Short Report. This same meticulous five-step system is the core of how it works. But it shares all my other ongoing research too, just so you're never left wondering how I come to my recommendations. By the way, we even "beta-tested" this approach for six straight months, just to make sure it could work...and it passed the test with flying colors.
Even in today's trickier markets.
The good news is that not only does it work, but with the help of "100-F documents"...it has gotten a lot easier for the handful of people who follow my research to duplicate these same kinds of results.
And as I said, every blue chip company in America is quietly forced by the U.S. government to reveal its secrets in these filed documents. When it has to reveal bad news, you can bet it doesn't exactly take out full-page ads in The New York Times.
But I can still dig out the details for you.
Then I can show you how to easily turn what we find into gains many times bigger than moves in the underlying shares...with controlled risk...and a very easy price per share.
It's all detailed in your free copy of Five Steps to Lock in Triple-Digit Gains Even as Stock Markets Crash. I'll rush you a copy as soon as you accept my special invitation to accept 3 FREE months of my research, at the end of this letter.
How well can this work?
Systematic "100-F" Gains: 400%
The Fad Diet . . .That Could've
Given You Fat Gains of 400%
Back in May 2006, Wall Street still loved NutriSystem Inc.
But I saw something different taking shape.
Looking deeper into NutriSystem's legally required "100-F documents," I could immediately tell that the company's business model was dangerously outdated for a newer, less-forgiving economy.
I sent an urgent alert to a small group of individuals...
�NutriSystem Inc. has all the characteristics of a 'fad diet' rolled up into one convenient speculation...While I don't doubt that the service has produced incredible results for many satisfied clients, this business model is highly reflective of modern American prosperity and demand for convenience...[and] convenience will be near the top of the list of household budget cuts in harder times...
"Concerns about operating expenses don't seem to be a factor, either...Wall Street is enamored with the idea that NutriSystem has a largely outsourced business model...However, the company cannot forever escape the new reality in energy pricing...Shipping costs will likely be headed up in the future."
The insiders must have agreed. In just five months, they had dumped over $100 million of their own shares. The company's CEO, a former dot-com entrepreneur named Mike Hagan, had cashed out over $82 million of his own shares in less than a year.
When the fat cats don't want to eat their own cooking, that's a bad sign.
Take a look at what happened next...
By 2007, the rest of the market started to wake up to the truth.
But you know how markets can be. Sometimes it's hard for market amateurs to let go of an idea. By September 2007 — at $55 per share — it was clear NutriSystem was still flying too high.
And it turned out that was the perfect moment to strike.
Your best move, looking carefully at the data, might have been the January 2008 NutriSystem $50 put option.
You might have paid about $5 per share to get in...and could have cashed out as high as $25.
That's a 400% gain.
Here's what you could have seen happen...
I'd love nothing more than to have you join the small, savvy group that gets my special opportunity alerts every week with my new research service, Strategic Short Report...
Make Perfect Plays,
Even in an Uneasy Market
Just to give you some idea of how well this works when we put rubber to road, here's just a glimpse of what my small elite group of readers have seen so far...
American Axle quietly squeezed in four "100-F" filings in Washington just before the Friday, May 30, 2008, deadline...and 4 trading days later, I was able to tell readers to lock in a 38% gain
When I first saw TCF Financial's "100-F Documents,� I could tell it was a turkey...even before it quietly disclosed some more bad news on May 2, 2008. Four days earlier, I had already shot out an alert to my readers, showing them how to play our put options on the shares...for a 97% gain
When Systemax's first embarrassing "100-F Documents� came out, I called for another put option play...just ahead of the company's fishy accounting "adjustment." Anybody who followed it could have made gains of 178%
The details this company buried in its "100-F Documents,� filed Monday, May 12, 2008...were exactly the same details backing a play I had recently rolled out to my small group. We're already up 78%...but I expect to see it climb a lot higher
Lehman Brothers, the fat-cat financial firm, was forced by Washington to file three different "100-F Documents� in a row this June...revealing details it never wanted to reveal. When my analysis uncovered its dirty secret, we turned that into a put option play that just closed with a gain of 216%.
Even before the first official Strategic Short Report alert went public, we saw two beta moves shoot up 120% and 130%. That's better than double your money. Twice. And that's before we even hit the streets.
I'm proud, sure.
But make no mistake. Just because my readers and I aim for bigger gains than you could get just holding stocks...that doesn't mean we play the market like it's a roulette wheel.
Why take chances, after all, if you don't have to?
Strict Rules That Help
Ensure Your Success
I've already proved my system for playing these unique money-multiplying opportunities can work. But there are rules of "conduct" I follow, too. Four very simple ones that help protect my Strategic Short Report readers from any avoidable losses. And, just as much, to make sure you get every chance to maximize every possible gain...
Rule No. 1: Minimize Risk
As I said earlier, when some people think of playing the downside of a crashing company, they immediately think of "short selling" the stock.
But this is a very risky way to bet on a falling stock. It can also be expensive. And the amount you can make is strictly limited.
What I love about put options is that you can control the risk. You can't lose more than you decide to put on the line. And you can decide how long you want to hold the options, right from the start.
The "other" key to cutting risk is good old-fashioned elbow grease. I simply do a lot more work to find the right shares to play against. It's that simple.
It has to be that way, when you're looking to act on details most companies would love to bury. That's why my readers and I start with the "100-F documents.�
But it doesn't end there. In every alert I�ll send you, I'll show you the deeper research I do between recommendations...digging deep into the numbers, asking all the questions, forcing the answers out of the data...
All before I click �Send.�
If you don't have someone doing the homework for you, I agree this isn't something to just jump into blindly. But with all the work already taken care of, you'll never need to do more than decide whether you want to jump on the opportunity...make a five-minute phone call...and read off the instructions that I'll provide.
This can easily be a safer way to make money, if you're doing what I show you how to do...both in the free copy of Five Steps to Lock in Triple-Digit Gains Even as Stock Markets Crash and in every weekly Strategic Short Report alert I'll send.
Rule No. 2: Keep It Cheap
The other thing to love about using stock options to make these moves is that you can usually pick them up much cheaper than what you're used to paying for quality stocks.
Some of the moves we've already seen were as cheap as $4 per share and less...even though, with options, you're controlling a larger portion of the underlying company's shares.
The best part about starting low like this is that it gives you plenty of room to take your gains much higher. It's a lot easier to double $5 into $10 than it is to double $50 into $100.
Rule No. 3: Aim High
The best part of doing this through options is the power of options to turn even small market moves...into much bigger ones.
Each share of an option can be like owning 100 shares of the related company. Even though you're paying much less per share to get in.
That can take a small change in the price of a stock and magnify it into gains as high as 10 or 15 times larger. Sometimes even greater.
With options, that's true whether you're counting on a stock to go up or go down...as I've shown you so far in this letter...and as I show readers of my new Strategic Short Report in our weekly market alerts.
Let me welcome you into our circle of opportunity and you'll quickly see what I mean. By the way, if I don't come through the way I've promised today, it�ll have cost you nothing to give my system a try.
And finally...
Rule No. 4: Keep It Easy
Pros love this strategy. Billion-dollar hedge funds use it all the time.
But that doesn't mean doing this has to be difficult. With my new service and our weekly research alerts, it doesn't matter if you've never made an options play on a stock before.
I walk you through it, with every recommendation.
First, I explain why we're considering each move. Then I tell you exactly what you would want to repeat in a phone call to your broker.
Start to finish, no alert will take you more than 10 minutes to read...or five minutes to put into play. My system makes each move thorough.
But no more thorough than we need to be to get the job done.
Obviously, I do all the footwork for you. I dig up everything we need to know about an upcoming opportunity, using the "100-F documents" and whatever else in my analysis that I can get my hands on.
With each alert, you read my summary and then decide if it's for you.
It's that simple.
You'll also get started with the easy-to-follow primer I send every new member of our little circle, Five Steps to Lock in Triple-Digit Gains Even as Stock Markets Crash.
It lays out my system for you in plain terms. And then you're up and running, ready for your first Strategic Short Report alert in no time flat.
There's only one thing I'll ask from you in return.
And that's that you'll let me know if you're ready to accept my invitation soon. Because right now, I believe there's never been a better time for my strategy to work...
Easily the Richest Time in History
Lots of market amateurs — and even pros — are worried right now about where shares are headed. Given the hype and the headlines, I don't blame them.
But the fact is what spells a crisis for some spells opportunity for others.
Especially for my Strategic Short Report readers.
I'm watching dozens of key moves right now...connected with the next wave of credit blowouts...an explosion of credit card debt and a coming student loan lending crisis...recession-vulnerable businesses...
Any one of them could yield the next wealth-tripling move.
I'd hate for you to miss out. Let me start by sending your copy of Five Steps to Lock in Triple-Digit Gains Even as Stock Markets Crash immediately. Inside, you'll find out...
The one secret number that exposes companies about to bleed cash
How to tell when company "fat cats" have tried to fluff up share prices
How companies fake sales...and the easy filter I use to catch them
The one big lie "blue chips" love to tell and how to gain when it gets found out
Plus more...
I simply can't give you the full details of my five-part system here. That wouldn't be fair to my friends and paid-up subscribers in the Short Report inner circle.
But you can see everything in the free report I'll send to get you started. What's more, even if you ultimately cancel the service for a full refund, I'm going to ask you to just keep the report for yourself. You'll have the first 90 days to decide. So feel free to take your time.
Just don't take too long. Because I'd hate for you to miss out on the next opportunity I have lined up for my Strategic Short Report readers...
The "Other" Way to Triple
Every Dollar Before 2009
I'm convinced this next move is at least a 200% gain in the making.
And I expect it to play out quickly over the weeks ahead.
This one is a private lender — not a bank, exactly — that takes shareholder money and invests it in loans to small businesses. For five decades straight, it's been a solid company.
But that's changed.
See, I've been digging into this company's latest "100-F Documents"...and it's clear to me that, like the big banks and financial firms, this private business lender is bogged down with piles of small business loans that are at least as toxic as the "subprime" loans that started bringing down other financial stocks last summer.
In other words, just like the greedy real estate lenders, this company stuck its neck out and gave piles of cash — billions of dollars — to risky small companies that will get slammed during the current rocky economy.
Businesses that, by the way, might never have gotten a business loan from any other bank. Even in the best of times. Worse, most of these mini "investments" are locked into consumer and service sectors. And many of them are already taking a recessionary pounding, financially.
Those losses get passed up to this lender.
And when this news finally hits Wall Street, I'm convinced this otherwise highly respected firm is going down for the count. When it does, my Strategic Short Report readers will have had the chance to put my put option recommendation in place. The same move, of course, you can read about immediately in a second free report I want to rush you.
It's called The Single Best �Short Report� Play in the Market Right Now.
It reveals the name of this next company we'll play. And it's yours at no charge. Just to thank you for giving my new weekly urgent alert service, Strategic Short Report, a FREE try for the next 3 months...
So let's run through this invitation just one more time...
What You'll Get
When You Join Us. . .
Too many Strategic Short Report readers acting on the same information would make some of my recommendations move too quickly. And that wouldn't be fair to paying subscribers.
So I'm allowing only the next 1500 people I hear from a chance to get in at this time. I may open that circle up again in the future, but we want to do this right.
So for now, the limit stands firm.
If I hear from you in time for you to qualify to get in, the first thing I'll do is immediately rush you a copy of Five Steps to Lock in Triple-Digit Gains Even as Stock Markets Crash.
This is your thorough primer on how to get started.
It immediately gives you everything you need to know about my system and how it works. All in simple steps and plain language. You'll find it a clear, easy read. With answers to every question you might have about how this works.
I'll also include a free copy of the second free research report we talked about, The Single Best �Short Report� Play in the Market Right Now — which immediately gives you my newest research on a recommendation I'm convinced could get you started with a gain of at least 200%.
Then I'll add you automatically to my list for receiving weekly Strategic Short Report alerts. These will arrive in your e-mail inbox once a week, usually Friday, but sometimes earlier, if the news warrants it.
In each alert, I'll name all the companies to watch...I'll catch you up on what's happening with all our current plays...and I'll give you a full picture of what we're looking at next.
Some plays will work out very quickly. Others we'll take our time with as they evolve. Either way, I want you to be ready to act as soon as you get my reports. Each time, I'll give you the exact "action to take" phrase you can share with your broker.
All you have to do is pick up the phone, dial, and read the recommendation verbatim. Then sit back and let the move play out. I�ll send you every piece of news and word of every market shift on every open position.
There's one more thing.
Once a month, I'll also send you a full new research report on a favorite play. This is on top of your weekly alerts, at no extra charge. It's included with your subscription. And each of the extra monthly reports will give you an even fuller profile of our latest favorite plays.
And of course, you can access all of this — anytime you like — archived on the private members-only Strategic Short Report Web site. I'll send you a private password immediately, just as soon as you accept my invitation.
How much should something like that cost you?
$10,000 Worth of Research
at a Fraction of the Price
As I said, I'm not the only guy doing this work.
Others track this side of the market. And do a very good job, too. But as I'm sure you can imagine, doing this kind of research doesn't come cheap.
To get diamonds, you've got to dig.
And of course, I happen to know that at the top-ranked private fund where I got my start, we shelled out $10,000 each year for the research service we used.
But Strategic Short Report won't cost you $10,000.
In fact, I have a subscription to a research service that costs $8,000 per year. But that's a lot more than I'll ask from you before you can join our inner circle of subscribers.
See, the fact is just by inviting a certain number of members into these opportunities, my publisher and I are able to spread out the costs for the research service...for producing and laying out my reports...for even my own fees as head analyst.
That makes it possible to let you into a Strategic Short Report slot right now for just $995 per year. And keep in mind that includes a special opportunity alert EVERY WEEK for a full year.
But it gets one step better than that.
For an extremely limited time, you can have a 3 FREE months with your membership to Strategic Short Report.
That means you pay just $750 for a full year of profitable research - saving yourself an extra 25% off the normal membership fee. But you must act immediately, as this discount will disappear right at midnight on Thursday.
Plus the extra monthly research reports you'll also get each month...your free copies of Five Steps to Lock in Triple-Digit Gains Even as Stock Markets Crash and The Single Best �Short Report� Play in the Market Right Now...and unlimited access to the members-only Strategic Short Report Web site.
If you're not a subscriber already, I'll give you a FREE subscription to the highly praised and widely read Daily Reckoning. On top of that, you'll get elite access to the Agora Financial Executive Series. The Executive Series is a members-only dispatch of two profit-laden e-mails, the Rude Awakening and the 5 Minute Forecast. These dailies will alert you to specific investment research and recommendations from across the entire world of investment opportunities that Agora Financial covers.
And of course, everything you get when you accept my offer is protected by my publisher's 100% Satisfaction Guarantee:
Try Strategic Short Report with no risk for the next 90 days. If you're not happy with my research for any reason, just tell my publisher and he'll immediately send you a full refund. Every penny. No questions asked.
You'll keep everything I send. And if you�re not satisfied after 90 days, just tell us and you'll still be entitled to a full refund on the remainder of your subscription. I'm sure that sounds like a square deal.
So now there's only one thing left...
Let me hear from you now and you'll lock in your place our Strategic Short Report "insider's circle."
Posted by
kandy
at
10:19:00 PM
0
comments
Labels: "100-F" Documents, Wealth
old Refining Squeezes Silver Bar Production?
A man emailed me a few days ago to "clue me in" that there is no silver shortage.
He wrote: I just came across your article. (Editor's note: Silver Shortages Cause Price Disconnect August 17, 2008) You are badly misinformed & this is causing you to misinform your readers. I am a dealer of gold & silver. There is way too much silver around. The problem is that there is not enough customers therefore J.M. & Engelhard have discontinued producing the 100 ozt bars. If you were to want gold or silver grain which is what the typical customer uses of this you can get how much you were to want. For the few oddballs that still want 100 ozt bars the only way someone can get them is if someone else sells them. This is not a shortage.
I do not write well but if you e-mail me back I can give you my number & we can speak.
We exchanged a few emails, and had an excellent phone conversation yesterday, and I shared a few things with him, too.
I'll take him at his word, everything he said made sense, and he had solid industry knowledge; in business since 1978. He was a physical precious metals buyer and seller, and he refines much of his own material. He buys and sells to Johnson Matthey on the slimmest of margins, and deals in up to 10,000 ounces of gold at a time. His main trade is to sell to the jewelry trade, selling physical gold and silver shot that he has refined himself to the manufacturers, who, in turn, sell to the jewelry shops.
He assured me there is no silver shortage. So, I shared with him the standard silver statistics, and he didn't dispute any of it.
I wrote: Here's what I know from the CPM Group, and Silver Institute.
Annual mine supply is about 600 million ounces.
Scrap recovery about 200 million ounces.
Government sales about 50 million ounces.
That's 850 million oz. of "total" annual supply.
Demand is 45% industrial, about 30% jewelry, and about 20% for photography.
That leaves about 5-10% for us tiny investors.
Investors do trade with investors, of course, and that's not counted in these, which are "net" flows. So, the 5%-10% for investors, is about 40-60 million ounces, again, NET. At current silver prices, that's $1 billion of total investor demand, NET.
NET means that if silver traders are selling $10 billion, they are buying $11 billion, or $1 billion more, NET.
But I have no idea of total trading. There is a lot of paper trading, and very little physical, comparitively.
For example, LBMA market has 75 million ounces of physical silver, on $30 billion annual trading volume. I don't see how that can happen without fraud, and nobody has ever commented intelligently on that.
Counting NET, your silver market is 3-6 times bigger than my silver market, and probably more stable.
From my perspective, there is a silver shortage, since 90% of the people of the world are concerned about inflation, and they have no way to get physical silver.
So, I asked him, if he deals with Johnson Matthey, why are they so far behind on refining 100 oz. bars? And, I asked him how long would it take to get silver from them? He said he could get 10,000 ounces in silver shot from them within a week.
He said JM was probably behind on bar orders because it's such a small part of their business, or that they get less for them.
I said that's not true, because investors are willing to pay a hefty premium for 100 oz. bars.
Proof of premium, and proof of delay: http://www.coloradogold.com/
That was news to him. I explained that on ebay, 100 oz. bars are selling for up to $4 over spot if you sell them individually. One went for $1900 yesterday!
He said that's part of the problem, (and he apologized, saying, "you'll probably say I'm one of the guys causing part of the problem") because he deals only in very large sizes, and wouldn't want to waste his time with such small trades.
I said he's not the problem, it's other guys in the trade who have run out, and who will take your money, and not deliver product for up to 2 months or more, that are the problem. Businesses such as Kitco, Perth Mint, Northwest Territorial Mint, and others.
We traded stories back and forth about how things change so quickly in this business from product to product; how Gold Maples are now among the cheapest kind of gold, because people get upset if they are scratched, and .999 gold scratches too easily.
He said that the refining business is way up; but in gold. He said people are now having these tupperware-like house parties where they get together to sell their old gold jewelry for immediate cash.
And gold refining is more profitable now than silver refining.
I also explained what changed recently, that silver buyers/investors now outnumber the investors who are sellers, so that the flow of silver from the coin shops is not getting to the refiners anymore, but needs to come from the refiners, to go out to investors.
He said that the number of 100 oz. silver bars he comes across (that are sold to him) was certainly dwindling. He said last week, he sold a small lot of 10 oz. silver bars and 100 oz. silver bars to another coin dealer "at spot", and the guy was literally drooling over them. I explained the premiums out there on these things now, because investors are now net buyers, not sellers. He said "maybe not so much where he is located" yet.
So, I said, "Well then, if there is no silver shortage, if that's what you are telling me, then I should sell out all of my 100 oz. silver bars, at the current high premiums, and then, buy another form of silver, at spot, with the money, right?"
He said, "Problem is, what kind of silver would you then get? Because 1000 oz. bars are too clunky, and the silver shot that he deals in and makes for the jewelers is not really suitable for investors. When he gets that kind of silver from JM, they know it's pure, but they would not want to buy that stuff "off the street", because it might be contaminated and hard to know what you are buying. Furthermore, silver shot would not be the kind of thing you'd want to leave to you children as a "legacy investment".
So, he admitted that for investors, 100 oz. bars would probably be the most ideal.
So, he also said, "I used to take 100 oz. bars and melt them down into silver shot, and so, you are saying that I should not do that anymore?" I said, "Right!" He said something like, "Well, Ok!"
I said, "Refiners could get squeezed because they are not going to get silver from the coin shops as much anymore, if at all." He said, "Not really, because we are making more money in gold refining now".
So, I suppose then, one way of looking at it is that it's the silver investor who gets squeezed, because it's not so profitable to service 100 oz. silver bar demand, when so much time and energy is going into other refining activities.
For example, I would imagine that if you make 5% refining gold at $800, then you make $40/oz. profit. You can't make so much by refining silver! Looking at it like that, the refiners refine silver "as a favor" to us!
Regardless, this brings me back to my main point. The silver market is tiny. Too tiny. And the silver price is cheap. Too cheap! Too cheap to motivate Johnson Matthey to make enough bars for us.
In silver, the jewelry business is still much larger than the investor market. Silver going into jewelry is still probably about 3-6 times as large as silver going into investment products.
Basically, neither one of us refuted the other. And everything he said confirms everything I know, and the things I said, confirmed what he knew. And now, you know, too.
In sum, increased silver investment demand is squeezing out silver jewelry buying. However, since jewelry is sold at a significantly higher mark up, per ounce, investors will have to bid ever higher to get more silver.
The days of getting "abundant" silver 100 oz. bars at 20 to 60 cents over spot, that investors used to sell into the trade that used to be melted down for jewelry, are probably about over.
Investors will have to bid higher, to create the incentive to create new 100 oz. bars.
A man asked me the other day, "Why don't dealers start bidding higher, to make sure they get product?" Well, I think the reason that they don't is that the ultimate buyer of last resort is the largest buyer in any market. Currently, in silver, the largest buyer is still jewelry, and before that, there are the refiners, and they pay just below spot. Therefore, it is a risk to bid above spot, because you have to trust that investment demand will continue to stay high. It's always hard for people and industry to adapt to change, but change is here.
Many coin shops must be still stuck in the old mentality, falsely thinking that "bars will come in" to fill our orders that we have locked in. If they don't, they are in trouble, and you can be in trouble if you ordered from the wrong place.
Here's what I suggest. FIND YOUR LOCAL COIN SHOP and go there, in person. Or visit the dealers who are recommended at:
www.find-your-local-coin-shop.com
In fact, now might be a good time to meet up other Silver Stock Report readers.
In my last email, I suggested that everyone visit their favorite local coin shop on September 1, at 1PM. But it was pointed out to me that's Labor Day. Let's try this:
September 2, 2PM on TUESDAY. Easy to remember.
Posted by
kandy
at
10:18:00 PM
1 comments
Labels: Wealth
Build Resource Royalty Wealth While You Sleep
Doing nothing while collecting royalties has to be one of the best — and easiest — ways to get rich. For instance, David Sengstack does nothing and collects royalty paychecks of $2 million per year... just because his dad was smart enough to buy the commercial rights to a song you've sung a hundred times, "Happy Birthday to You."
Michael Jackson does nothing and collects royalties every time a Beatles song plays on the radio (he bought the rights years ago). But Paul McCartney — now a billionaire — does nothing and collects even more on the 3,000 song rights from other artists that he owns.
Paul Newman made plenty acting. But licensing his name piles up even more donations for his favorite charities — over $200 million so far — from royalties on the Newman's Own food line.
Even boxer George Foreman does better doing nothing than he did fighting in the ring, thanks to the $137 million royalty checks he gets for lending his name to a grill.
No wonder the world's richest investor calls collecting royalties the best business in the world. It's literally one of the easiest ways to do nothing and "make money while you sleep."
What might shock you is that there actually IS a way for anybody to tap into a pool of growing royalties... wealth that piles up by itself... that, ultimately, could be worth more than the entire Beatles catalog, all the commercial rights to "Happy Birthday," and the total value of the top 25 most expensive works of art in the world... combined.
And you can set it up in less than five minutes.
I call it the "Chaffee Royalty" program, after a former schoolteacher and wealthy American millionaire, Jerome B. Chaffee. Just like people who make a living collecting royalty checks, you don't need to do anything once you've tapped into the program.
You just sit back and watch the money pile up.
8 Americans Who Just Cashed in
on "Chaffee Royalties"
Even though I'm almost positive you've never heard of "Chaffee Royalties," some of America's wealthiest families have — though by another name. In fact, it's a secret that's made more than a few Americans exceedingly rich.
Robert Friedland made millions of dollars when his "Chaffee Royalty" holdings jumped in value from $4 to $167 in just two years
George Hearst borrowed the $3,000 he used to buy his way into "Chaffee Royalties" in Nevada. Within months, his stake had grown to $91,000 — money he used to buy even more royalty rights, which ultimately launched his empire
Jim Fair, a former Illinois farmer, got so rich with his "Chaffee Royalties" he was able to hand his daughter a $1 million check as a wedding present
William O'Brien earned enough from his "Chaffee Royalties" to make him one of the 100 richest Americans of all time
Former California carpenter John Mackay scraped together $500 to buy his first share in a "Chaffee Royalty" program. He made enough to build a mansion surrounded by 70 acres of land and formal gardens for his son
E.J. "Lucky" Baldwin parked his last $800 in "Chaffee Royalties" while living in Virginia City, Nev. By the time he was through, he'd piled up royalty wealth worth over $5 million
James Flood, who came to the U.S. with next to nothing, got so rich on "Chaffee Royalties" he was able to build a beautiful sandstone home on top of San Francisco's famous Nob Hill. It's still there today
Then there's Stanley Dempsey. A lawyer who quit law and put his money into "Chaffee Royalty" contracts now makes his living collecting on 23 different streams of royalty income. Forbes even featured Dempsey and called his fortune "virtual gold," since he barely has to do or run anything to keep the money rolling in.
But there's no reason you can't collect anytime you like.
In fact, now that these "Chaffee Royalty" programs trade directly on the stock exchange, you can get in anytime you like. And with the right timing, you can get in at a very good price. And then start seeing gains from "Chaffee Royalties" immediately.
This is the situation we're in right now.
Which is why I'm writing you today.
See, in 2002, one of the most impressive "Chaffee Royalty" opportunities of all time closed its doors to new funds, just after delivering a 50-to-1 payoff for its earliest "members."
Today, that opportunity is back.
And for reasons I'll share, the timing now is better than ever.
What's more, today, there's more than one way to lock into "Chaffee Royalties." And one of those options, according to research that took me nine months to pull together, could pay out even better than what was once the most profitable "Chaffee Royalty" opportunity of all time.
We'll get to those details.
But first, let's start at the beginning...
The "Chaffee Royalty Program"
That Changed America
Jerome B. Chaffee didn't make enough as a schoolteacher. So he took a job as a sales clerk in a dry goods store. Then he took that money and started a dry goods store of his own.
When that wasn't enough, he packed his bags and went to Colorado in 1860.
See, Colorado then — as right now — was mineral rich. And even though Chaffee knew next to nothing about mining, he saw the possibilities. And started snapping up the "royalty rights" on as many gold and silver claims as he could afford.
Every time one started to pay off, he bought more. Until he had a business making between $300,000–500,000 per year — or as much as $17.3 million today.
Suddenly the ex-schoolteacher was very rich. And powerful.
Chaffee took up politics, pushing for laws that would lock in the same kinds of opportunities for everybody. He even went to Washington and became a senator — and a friend of the president, Ulysses S. Grant.
Chaffee's own daughter even married the president's son, Ulysses S. Grant Jr.!
In 1872, Grant expanded on protecting the resource rights that Chaffee championed by signing the General Mining Act, a law that still safeguards mineral rights today... has already created countless American millionaires... and helped blow open the gateway to the American West.
"Chaffee Royalties" let you tap into rich mineral rights more easily than so many others did years ago. You don't need a lot to get started. In fact, you do practically nothing. Even as the rich resource wealth piles up.
I've done all the legwork already. It's written up in my newest research report, Big Mining Money Without the Big Risks: How to Build Resource Royalty Wealth While You Sleep.
You cannot buy this report anywhere. However, at the end of this letter, I can show you how to download your own copy very easily. Inside, you'll find details on why now is easily the best time in history to make money tapping into "Chaffee Royalties."
I then go ahead and name for you my top five favorite ways to get started, including the No. 1 "Chaffee Royalty" opportunity available today.
And getting in right now won't cost you more than about $6 per share.
Almost Nothing to Get Started. . .
Provided You Act on This Quickly
The better known these "Chaffee Royalty" opportunities become, the faster the entry price goes up. That's just the way they work. Simply because new capital lets them add even more rich royalty streams, increasing the value of the program for shareholders.
For instance, in my report, I tell you about one royalty-collecting group that let in new "members" for just $3 per share as recently as June 2005. But as royalty assets grew, so did the cost of entry — up to $19 per share today.
That's a 530% return if you got in early. I see it going still higher, but the longer you wait, the more of these gains you'll miss out on in the future.
Then there's another one of these unique "Chaffee Royalty" opportunities I name in the report that first hit the open market at just $1.10. As of this writing, it's already asking new "members" for $32 per share. That's a solid 2,809% return so far — turning every $5,000 into well over $140,000.
While I see still more ahead, this, too, is far from the best gain I expect you to have the opportunity to make. In fact, one of the most famous "Chaffee Royalty" plays of all time — which I'll tell you about in detail in just a second — soared from just a few dollars per share to more than $180 per share before it was through.
Anyone with the luck to get in early had the chance to make as much as $50 for every $1 invested — or $250,000 for every $5,000. And then, in 2002, this particular "Chaffee Royalty" miracle closed its doors to new investors.
As you'll see, it's back again. And already piling up new royalty stream income for the new wave of shareholders. You can easily move on this right now. But before you do, let me show you a way I believe you can do even better than by revisiting any of these already time-tested "Chaffee Royalty" moves.
Again, it's all in my new report, Big Mining Money Without the Big Risks: How to Build Resource Royalty Wealth While You Sleep.
So why haven't you heard of "Chaffee Royalties" before?
Because most mainstream headlines don't look deep enough into the deals to discover them. At least, not until the early opportunities are long gone.
As an ex-commercial banker who used to handle $400 million contracts for breakfast, looking deep behind the scenes... for Special Situations like this... is my specialty.
That's what first got me looking into "Chaffee Royalties" as a unique new way for investors to get very rich. It's also what has me convinced, along with some very smart and very rich investors, that this may be one of the best undiscovered ways to "make money while you sleep" available today.
But there's something else...
Because today, with the massive global credit crisis... soaring energy costs... and the systematic destruction of your dollar-denominated savings... this is also the best market ever to start looking at these "Chaffee Royalty" programs as a way to build wealth.
Why? I lay it all out for you in my new report, Big Mining Money Without the Big Risks: How to Build Resource Royalty Wealth While You Sleep, which can act as a valuable "primer" on exactly how to tap into this new wave of royalty-backed riches.
Here's a glimpse of what you'll find...
Big Mining Gains Without the Usual Big Risks
All the value in "Chaffee Royalties" is backed by real resource wealth.
Oil. Gas. Gold and silver. Copper. Nickel. Diamonds.
But the beauty of these royalty streams isn't just the hard asset value that's behind them.
Instead, it's the fact that... as you watch the wealth pile up... you do it with none of the major risks that most mineral and hard asset investors face.
How so?
That's the unique opportunity with "Chaffee Royalties."
They're designed to deliver all the upside of the world's rich mineral wealth. But without passing on any of the major exploration, management or environmental costs of mining or drilling to the end shareholders.
Imagine, for instance, if you could own a "piece" of Apple's iPod sales... without paying a nickel toward the operating costs, research or advertising.
Imagine if you could collect Google's ad sales... or Exxon Mobil's oil revenue... without forking over for employee salaries, building and maintaining headquarters, or any of those other costs that typically nickel-and-dime shareholders out of gains.
"Chaffee Royalties" let you do that, backed by pure gains on some of the most valuable mineral and other raw resource deposits in the world.
No Better Time Than NOW to Take
Advantage of "Chaffee Royalties"
Right now, resource companies are lining up to swap some of their gross profits for these royalty programs. Why would they do that?
It's simple.
See, right now, the global credit crunch is just one of the forces destroying the U.S. dollar. And that, plus unstoppable Asian demand, has sent the value of gold... silver... copper... nickel... zinc... lead... and just about every other mineral asset you can name... soaring.
That's great for anyone who produces or sells those resources.
Trouble is, as energy prices go up, so do the operating and production costs for the miners. So if they want to expand to capitalize on the resource boom, they need money.
Usually, that money comes from the banks. But the banks don 't want to make any new loans today. And the resource companies themselves — like Barrick Gold and Newmont Mining — just don't have the cash flow to take up the slack.
So they turn to the royalty companies instead, trading big loans for future profits on the huge piles of resources they're drawing out of the ground.
As long as the minerals keep coming up... and the market keeps begging for more... these royalty companies and their program "members" get rich, without ever owning an inch of dirt or worrying about running the actual mining business.
It's that simple. And right now may be the best time in history to be a part of the "Chaffee Royalty" trend. Even the Financial Post recently reported:
"Today, the last thing many investors want is operating control. Mining companies are fighting staggering capital cost increases due to soaring demand for labor and equipment, as well as fuel and power. The beauty of the royalty model is that it gives investors all the exposure on the revenue side and none on the cost side."
The Financial Post went on to say, "[Chaffee Royalties] are the low-risk way to play the mining game" and the "ideal way to get lower-risk exposure" to gold, energy and other resource wealth.
No work. No major worries. No management.
Just royalty riches.
Here's a great example...
Up to 50 Times Your Money. . .
Without Getting Your Hands Dirty
The Goldstrike mine — in northeastern Nevada — is one of the best producing and most profitable gold mines in the world.
Millions of dollars are spent pulling out and processing as much as 35,000 tons of rock per day. Year after year. More than 1,600 employees work the site.
That's nearly the same size as the whole population of nearby Carlin, Nev.
Anyone who owned a piece of Goldstrike made a fortune.
Pierre Lassonde was one of them. But Pierre never actually owned the mine. He never actually hired a mining team, either. Or spent every day on the mining site.
Instead, he had a better plan.
See, at the time, Pierre was one of the top gold analysts in Canada, with more than 25 years of mining experience. And, though he knew early about the potential at the Goldstrike site, what he also knew was that he could get rich without having to do the work.
Because he'd worked out a way to let someone else do it for him while he collected the "Chaffee Royalties" we've just talked about. And he did. To the tune of many millions of dollars.
Not just for himself.
But for the shareholders who helped "back" Pierre on the deal...
The Laziest, Low-Risk Road to Mining Riches
You might still remember Pierre's company. It was called Franco-Nevada, and at the start, it was pretty tiny. Some mining companies have as many as 30,000 or more employees worldwide.
Pierre's company started with just two — himself and a partner.
And his plan was not to own an actual piece of the rich Goldstrike property — but to dedicate Franco-Nevada's assets to buying only the "Chaffee Royalty" rights to Goldstrike instead.
And when Goldstrike hit big on gold, the royalty money started pouring into Franco-Nevada. And all Pierre and his team had to do was rake it in.
In those early days, you could have picked up Franco-Nevada shares for just a few dollars... and then watched them soar to well over $180.
By the time Franco-Nevada got snapped up in 2002, it had ballooned from a tiny $2.3 million firm... to a company worth the $2.9 billion shelled out by Newmont Mining... which saw the writing on the wall and bought up Franco-Nevada's whole portfolio of royalty deals in one grab.
With the buyout, your chance to get in on the original Franco-Nevada pool of "Chaffee Royalties" ended. Pierre Lassonde took over as Newmont's new president. Until recently, he even chaired the World Gold Council.
But Pierre never forgot what a low-maintenance income bonanza he had with Franco-Nevada. And just recently, at the tail end of 2007, he tried to quietly bring Franco-Nevada back onto the public market. News still traveled fast, and Franco's IPO hauled in a record $1.2 billion.
Here's the beauty of this new arrangement.
Franco-Nevada held onto a pile of royalty contracts, even while under Newmont's shadow. And now, with its IPO money, it's perfectly positioned to snap up even more.
This is just one reason why "Chaffee Royalties" could very well be the safest way, right now, for you to play this ongoing global scramble for commodities. And by the way, the new Franco-Nevada could also be one of the better ways for you to play this opportunity, too.
However, I'm convinced I've found one that's even better.
Right now, it's still very small. Just as Franco-Nevada was at the beginning. And you can still get in at that early, easy entry stage.
Because it's so small, I can't possibly name it here. That wouldn't be fair to the small group of individuals who pay to follow my research on these specialized, lesser-known opportunities.
There is, however, a way I can share this with you.
Which I'd like to tell you about right now...
The Next Franco-Nevada
In my new report, Big Mining Money Without the Big Risks: How to Build Resource Royalty Wealth While You Sleep, I give you everything I've found — after nine months of deep research — on the best of the "Chaffee Royalty" opportunities open to you right now.
But the one I recommend first to my readers and friends is one I can't resist telling you a little more about right now.
If you've ever flown across the Atlantic, there's a good chance you've seen it.
Or at least, you've see the "crown jewel" assets that make this still undiscovered "Chaffee Royalty" opportunity so rich. It's called Voisey's Bay. And it's one of the most valuable piles of ice and rock ever discovered.
From a plane window, it looks like a map made of elephant skin. Nothing but frozen rivers and gnarled earth, stretched out as far as you can see.
But underneath, you'll find as much as $50 billion worth of mineral wealth. Discovered in 1993, it's already making fortunes. Not on gold or silver, but on some of the world's richest deposits of copper, cobalt and — mostly — nickel.
And it's the nickel that should to continue to make many more people very rich. Including anybody who holds a "Chaffee Royalty" deal on those same vast nickel deposits.
Let me just show you why...
You need nickel to make steel. And China churned through 7.5 million tons of stainless steel last year. It'll produce 9 million tons before the end of this year
Over 65% of world nickel demand goes into the making of high-grade stainless steel
Even in a slowdown, China needs to build railroads to transport energy and cities to house their exploding population. For both, China desperately needs stainless steel
China alone uses up six times more nickel now than it did in 2000
In the last five years, Chinese nickel demand surged from 50,000 tons of nickel per year... to over 200,000 tons. No other country consumes as much.
Global nickel demand could surge another 10% before 2009
As with all metals, nickel prices fluctuate. But top metals analyst still see nickel prices spiking as high as $20 before the end of 2008.
You can see how this shapes up.
And buried deep in Voisey's Bay, you'll find one of the world's largest and highest-grade nickel deposits — and easily the richest Canadian mineral discovery of the last 40 years.
There's easily enough nickel here to make this one deposit a cash cow mine for the next 20–25 years. If you want to own just the direct mining shares, you can look to a Brazilian company — Companhia Vale do Rio Doce (CVRD) — which owns and works the property.
But before you do, let me show you an even easier way...
Getting Paid for Just Breathing
Because CVRD does all its own exploration at Voisey's Bay, it pays for it. And so do its shareholders. They pay for the digging. They pay to process the tons of rock. They pay to get all the copper, cobalt and nickel ready for sale on the open market.
Sure, they make money. But they spend money, too. A TON of it.
So far, more than $1 billion just on developing CVRD's properties in this one area. That's nothing to sneeze at, even if the price of nickel is soaring. But I can show you how to tap the "Chaffee Royalties" tied to those same minerals so you can take profits without the costs of running a mine...
Without the major cost concerns.
Without even worrying whether or not the price of nickel will go up.
You see, right now, there's another company in Voisey's Bay doing what Franco-Nevada did so early in its own legendary march toward blockbuster 50-fold gains.
This company, like Franco, traded some early investment capital for the unique "Chaffee Royalties" rights connected with Voisey's Bay nickel. And now it's offering a piece of those royalties to you, as a potential shareholder.
This is a very rare opportunity.
It's not so difficult today to find other companies offering "Chaffee Royalties." But it's not as easy to find one in as early a stage as this one. With a share prices that's still this low... and nearly 100 royalty contracts either already producing or about to produce potential gains for new shareholders.
Remember, one of the "Chaffee Royalty" companies I told you about jumped from $3 per share to $19 very quickly... another soared from $1.10 to $32... and Franco-Nevada itself went from under $4 to more than $180 per share before it closed its doors to new "members."
This next future blockbuster royalty opportunity is already on the move.
On this Voisey's Bay deal alone, it should collect royalties between $16–20 million. And yes, that's if nickel prices today don't budge another inch.
What happens if nickel surges again to the record levels it hit last May?
If that happens, count on another $24 million in royalties going straight to this little company's bottom line. That might not sound like much for a big, well-known company. But for a company like this — still undiscovered and valued at only just over $400 million on the stock market — this is enormous. And just based on that, I already calculate that this could be an easy way to triple every dollar invested over the next two years.
But it doesn't stop there.
Because, you see, this little "Chaffee Royalty" outfit — like the early Franco-Nevada — has a lot more going for it that just the sweetheart royalty deal on Voisey's Bay nickel.
As I said, it carries nearly 100 royalty deals — any one of which could start producing as well or better — and all of which give you even more opportunities to pile up royalty wealth on five different continents... and in 10 different countries... in 18 different commodities.
Gold Gains With Much Less Risk, Too
On top of the Voisey's Bay "lock" this company has on Canadian nickel... it's also taking in piles of royalty cash for itself and its shareholders on some of Canada's richest gold deposits.
Not to mention even more gold royalties on one of the most productive gold mines in Chile... another huge "Chaffee Royalty" stream on more than 1 million estimated ounces of Nevada gold... and even more gold royalties on a large mine in Australia.
I haven't even mentioned the royalty streams on platinum properties... uranium properties... and even more copper and cobalt properties... just to name a few. Some pay huge royalties now, and some promise huge potential royalties as they steadily come online.
This company provides more than just access to some of the best gold, silver and diamonds... uranium, coal and oil... natural gas... nickel, copper, cobalt and zinc... in the world. It also gives you the diversity and balance that you just can't get from most straight mining shares.
Without sacrificing the rare opportunity for triple and quadruple gains.
And just as good as the royalties this company already takes in is the promise of future royalties on deals it's already made. Take this company's royalty rights on a hugely profitable gold mine in Chile.
Mining giant Barrick does all the work to get the metal out of the ground. And that mine alone should churn out as much as 775,000 ounces of gold per year... at a cost as low as $130 per ounce. In fact, this Chilean mine should be Barrick's third largest operation by 2010.
Owning Barrick directly isn't a bad move. It's one of the best mining stocks in the industry. But it's not cheap. And Barrick, as I said, faces some rising costs and shrinking cash flow.
This little company, however, owns the "Chaffee Royalties" on the same gold mine. It paid only $11.4 million, very early on. And I expect it to make that back many times over during the life of the mine.
Barrick and its shareholders love the deal, because it means they get money to expand exploration and production. This royalty company and its "program members" love it because it's yet another stream of resource royalty income.
As long as Barrick keeps bringing gold out of the ground, this little company rakes it in. And so do you, if you hold this company's still affordable shares.
Plus, while this company already makes very good money on its five best royalty deals... let's not forget what you get out of its huge portfolio of nearly 100 other royalty deals.
Right now, another 11 of these new royalty arrangements are scheduled to come online over the next several months. That's more royalty income without the major mining costs. And more value in this little royalty company's shares.
I told you before that the Voisey's Bay income alone was enough reason for this little royalty company to give you an easy triple on every dollar invested. But with these extra royalty agreements, including the 11 new ones that should come online over the next few months... this isn't just an easy triple... it could, conservatively, be a "ten-bagger" stock.
But even then, I STILL think saying you could make 10 times your money on this is also conservative...
How This Beats the Best Royalty Play of All Time
Wouldn't it be nice to know that without lifting a finger, you're accumulating the kind of money that could free you from work... fund your retirement... and pay for your future?
That easily could have been the case if you'd have known to move early on Franco-Nevada.
But let me just walk you through how that unfolded. Because, you see, Franco-Nevada going from zero to $40 million per year in royalty income took about 12 years. And that was ultimately enough to take its shares from $4 to over $180 per share.
Not bad, right?
Another of the "Chaffee Royalty" opportunities you'll read about in my new report, Big Mining Money Without the Big Risks: How to Build Resource Royalty Wealth While You Sleep, took 15 years to get to its first annual $30 million in royalty income. That was enough to get it from $1.10 per share to over $32. For a gain so far of 2,809%.
While I believe that last company could go still higher, I urge you to pay attention now to this little company I've been telling you about — which I like to call the "next Franco-Nevada" for a very good reason.
You see, this little company recently managed to jump from about $400,000 in annual royalty income... to over $13.7 million... in less than two years! That's many times faster than even some of the best "Chaffee Royalty" companies I've ever seen.
What's the key difference?
The track record of this small company for picking the best royalty deals is impeccable. What's more, it just recently picked up another 16 new royalty deals... including royalty draws on four new gold mines... four new diamond properties... two new uranium deals... and three more new nickel royalties... plus royalties on rich new deposits of zinc, lead, silver, cobalt and molybdenum.
With nearly 100 royalty streams, your chances of the "next big hit" or major discovery could be huge. And remember, you need only one to pay off — the way Goldstrike did for Franco-Nevada — to see even MORE upward pressure on the value of this royalty company's shares.
If just one of these nearly 100 royalty deals pays off big... I'm confident that this isn't just a triple or a ten-bagger opportunity, but quite possibly the next 50-to-1 payday for anyone who acts on this quickly.
Maybe even better.
It's like owning an option on what could become the best resource play of the century. If it doesn't pan out, you still do extremely well. And if it does, you get rich.
Just in case you think I'm overstating the evidence, the fact is that at least two of these new royalty deals already look like they could add 25% in new royalty income to this company's bottom line over the coming year.
With that amount going up over the years ahead.
Right now, this company lists on the stock market for only $408 million. Given that it has only $22 million in debt... plus over 100 royalty contracts... and an easy $40 million already looking likely, thanks to its nickel and gold royalty deals alone... you're talking an incredible deal. Other royalty companies have already sold for double that multiple.
But as I said, few of these other mineral rights royalty companies have as good a spread of different royalty streams as this one. And with every dollar that comes in, it continues to add more great royalty streams to its portfolio.
Based on that, plus everything else I've already told you, I fully believe this is the best "Chaffee Royalty" opportunity listed on the market today. Maybe even better than getting into Franco-Nevada at the start of its amazing 50-to-1 profit run.
A takeover... more soaring energy prices... soaring interest in the shares... they could all take the share price higher, very soon... closing out the best of this opportunity very quickly.
So I urge you to get my report, by accepting the special invitation at the end of this letter, as soon as you can. As I said, Big Mining Money Without the Big Risks: How to Build Resource Royalty Wealth While You Sleep isn't free. And I won't take your money for it, either.
It's simply not for sale, anywhere or to anyone.
But there is one way to get a copy into your hands instantly. All you have to do is accept a special invitation. One that could potentially make you a fortune over the year ahead. And show you how to access a pool of investment wealth you never knew existed.
I Should Introduce Myself
My name is Chris Mayer.
Maybe you've heard of me. I'm known for the appearances I make on financial news shows like Fox Television's Bulls & Bears... Forbes on Fox... and the CNBC financial reports.
Or maybe you know me for my new book, Invest Like a Dealmaker. Or from interviews I've given to national radio talk shows or in the newspapers.
You might even know my background, which wasn't originally in financial market analysis at all. I was a commercial banker, for one of the largest and most respected banks in the U.S., overseeing a $250 million investment account and loans for $400 million companies.
It was a role I loved. I'm proud to say I was a vice president there before I turned 30. And not once during my tenure did we lose a single dime on our major corporate loans. That's a rare claim in lending.
I mention it because that background — poring over the balance sheets of major and minor companies alike, looking for anomalies, mistakes and even hidden value — was about the best stock picking training you can imagine.
It's why I eventually stepped away from the bank.
Because I loved the markets. And I loved picking winning stocks even more. I do that now, for over 29,220 readers, in a highly sought-after monthly stock market research letter.
But for years, I kept coming across a kind of investing opportunity that I just couldn't share in my widely read monthly letter. Stocks and other plays that were just too small... too "different"... and just that much harder to find or track for your average, mainstream reader.
The "Special Situations" Kept Secret
From You All These Years
The undiscovered opportunities I kept coming across are what Wall Street calls "special situation" stocks — fast moving, hidden opportunities that are extremely popular with insiders but just too small or too little known for the average investing mainstream.
Takeovers and buybacks... secret mergers... heavy insider buying opportunities... and "Chaffee Royalty" moves like the one I'm showing you today.
Every single one of them revealed money most investors just kept leaving on the table...
Huge opportunities.
I couldn't stand knowing how many of these kept going unnoticed.
So I did something about it. I worked with my publisher to create a brand-new kind of research service, called Mayer's Special Situations.
This is not a simple newsletter for mom and pop market watchers.
It's a much more revealing and advanced research advisory service, tailored for elite readers. How are we doing so far? The service is barely 23 months old.
And we've already clocked gains like 44% on Fundtech... 100% on Lindsay Manufacturing... 122% gains on Gorman-Rupp... 132% on T3 Energy Services... not to mention gains on shares I can't name because they're still open. But we're already up 26% on one... 36% on another... 48%... 50%... 78%... and then 84%... 93%... 129%... 137%... 153%... the list goes on.
Just on an average of all the winners and losers in my current portfolio, we're already racking up an average 33% so far. And on a cumulative basis, a stunning 758% altogether.
These are opportunities you just can't read about anywhere else. And much earlier in the moneymaking stage than you'll discover anywhere else...
You'll get the moves that go beyond regular stock investing, like the special "royalty program" plays I revealed to you today
You'll get the stock opportunities pros would rather trade, above the humdrum, and hinging on the "behind the scenes" deals and insider moves we all know really move markets
You'll get the picks that can move your money quickly, and in a very short time, but with my own "banker's twist" — where I'll do the qualified number crunching most brokers don't even know how to do — to ensure that I never ask you to take an unjustified risk
You'll get advance warning on above-and-beyond moves, with far greater potential than you average, everyday stock opportunity.
Of course, the easiest way to reveal what Mayer's Special Situations can do for you is to let you try it for yourself. Which is exactly what I hope you'll do.
Here's What Others Are Already Saying
Matt M. was one of my earliest Mayer's Special Situations readers. Take a look at what he told me recently...
"Chris, your recommendations total $272,000 — 15% of my portfolio... I like your approach and style — and the results — you identify opportunities that I would not be able to find by myself."
Here's one from subscriber Eric L...
"Hey Chris, your Libbey recommendation alone just paid for my Acapulco vacation — thanks! Your reports are very professional without being stuffy... You're one of my main go-to guys... keep up the great work, and thanks again!
And this is what Special Situations reader Michael K. wrote in to report...
"I'm enjoying this new service, and I love the way you think about investments. My highest compliment is that I look forward to your updates and recommendations. I appreciate your thorough and thoughtful analysis and independent thinking and research. And the bottom line is you are making me money..."
You can guess I love getting letters like these. And I have piles of them. The gains, the rare and undiscovered alternatives to typical stock investing opportunities, the handpicked moves and careful research... I'm happy to finally have the chance to share this with people who can appreciate how rich these "special situations" opportunities can be.
I'm not looking to brag.
I just want to make it clear that you'll find something here that you're not going to find elsewhere. One popular financial writer even wrote, on his financial blog Market Metaphysics...
"Chris Mayer is the best financial journalist you've never heard of... Mayer's elegant prose will make you wonder why you don't find this caliber of writing in the mainstream financial press. Mayer's essays are sharp intellectual discoveries... all this and solid investment ideas, too."
Again, I'm proud of the kudos. But I'm even more proud of the results. And I'm going to urge you, in just a second, to give me a chance to do the same for you... starting immediately with the new research report I've told you about, Big Mining Money Without the Big Risks: How to Build Resource Royalty Wealth While You Sleep...
The Single Best Way for You to
Get Rich on Royalties Right Now
Right now, there are several companies listed on the stock market that use the "Chaffee Royalty" model to enhance shareholder wealth.
That's why I've spent the better part of the last year doing careful research to find only the best ones for you to consider adding to your portfolio.
And I've written each of them up in detail in the new report we've talked about, Big Mining Money Without the Big Risks: How to Build Resource Royalty Wealth While You Sleep. Inside, you'll find my full and targeted analysis on...
One of the easiest and purest plays on the coming surge in silver prices. With this company's already solid "Chaffee Royalty" streams of income, you could tap into six of the world's top silver deposits, including a stream of expense-free royalty income on the largest silver deposit ever discovered. If you like silver as an investment play, this could be the single best way to play it
With one move, this next "Chaffee Royalty" play could give you a claim on royalty deals for nearly 50 mining properties in mineral-rich Nevada... plus a piece in wholly owned and productive mines with several million ounces of proven gold already in the ground
Like the other pure "Chaffee Royalty" companies, this next player owns no mines. Or mining equipment. In fact it has only 15 employees. But that hasn't stopped it from tapping into royalties from several of the world's best gold mines... on the future sale of over 50 million ounces of gold and more than 1 billion (with a "B") ounces of silver
The new Franco-Nevada is a lot like the old Franco-Nevada — jammed with choice royalty deals. After raising over $1.2 billion with a record-breaking IPO at the end of 2007, the new Franco bought back 190 royalties on metals and mineral companies... plus another 100 royalties on oil and gas producers. Is it still a good buy? I reveal the answer inside my report
My favorite "Chaffee Royalty" company by far, I save for last. With nearly 100 mineral royalty rights and a brilliant track record of picking deals with as many as 25–30 years of production, this is easily the best way for you to combine big money-multiplying gains with higher safety than you could possibly get just owning mining shares outright.
I urge you to take a look.
And keep in mind, on each of these deals, the royalties are coming in on minerals already discovered, but there's also potential for more discoveries down the line. By already owning a piece of the royalty rights, you'd also be locking in on those future income streams too.
When the mines' owners invest more money to expand the mines, you'd also automatically own a piece of that expansion. Without investing another dime.
What if there's another breakthrough mineral discovery on one of the mineral properties? The royalty rights shareholders own a piece of that too. Along with the bump it could give to the royalty company's shares.
It's like owning an option on the resource boom, with which you get all the future upside gains at a much cheaper entry price. And without any of the major downside headaches.
As long as those mines are producing, the royalties roll in year after year. And with the companies I've found and featured in the report, you've got access to "long haul" deals that have as many as 25–30 years of production left in the related mines.
So those royalties have plenty of time to pile up pretty high. In other words, you could start benefiting from the royalties immediately. And then keep on collecting for many, many years to come. All while even more royalty rights get added to your share of the overall portfolio.
Why would you want to pass that up?
You'd have a tough time finding a better deal — with full and growing access to the "mineral rush" upside, almost as far as the eye can see, but with very little to none of the conventional mining or exploration company risks — and that's just the beginning of what I'm ready to share...
Five More "Special Situations"
Moneymakers You Don't Want to Miss
Right now, my Mayer's Special Situations readers and I are looking at five more rare "special situations" I don't want you to miss...
Unless you know mining, you've never heard of molybdenum. But it's known as the "energy metal." And it's key to all things energy. This little company produces it better than anybody, with a share price that's an easy double within the year. Even if "moly" prices don't budge
The world's energy fields are getting old. And this one stock gives you a better way to play this than anybody. Right now, it's still deeply undervalued. But that won't last for long. In our first 11 days with this company, we were up over 6% — so it's already on the move
T. Boone Pickens, the 79-year-old billionaire, must love this next stock as much as we do — he just bought $76 million worth. And I see it soaring much higher, on the back of a surprise supply-demand super-crunch in this one ignored raw resource
This tiny little $2 copper stock is super cheap with huge potential. It's another easy double within the year. Plus, it pays a 5% dividend — how can you beat that?
Drug companies come and go, but with the boomers marching into the golden years... it's a sure bet someone somewhere is writing a medical prescription. The more they write, the better for this last company. It's a spinoff story with solid 300% gain potential ahead.
You'll find out the names of these rare "special situation" moves in your free report Five Stunning "Special Situation" Plays You Can't Afford to Miss. You can download that the minute you accept my invitation to become a subscriber to Mayer's Special Situations.
Here's how it works...
How to Gain Full Access to My
Elite "Special Situations" List
I'm sure you understand this "special situation" research isn't free.
These plays are more difficult to find and track than regular stocks. And you can share them only with a smaller group of readers. That way, the share price won't get influenced.
So the first thing I insist on is that we keep new enrollment at a maximum of 2,000 slots. Not one more. If you come in after that, I'm afraid you're out of luck until we can open enrollment again. No exceptions.
Second, I need to ask a reasonable price, given the potential of the plays I reveal and the level of sophistication I'm hoping to attract in my readers.
What's a fair price for gaining access to these highly valuable, undiscovered "special situation" deals? Before I answer that, let me tell you about just one more little-known opportunity you should add to your portfolio right now...
Grab Your Share of a 500 Billion Barrel
Oil Payout Underneath North Dakota
This is just one more thing I can't resist telling you about.
My readers and I have tracked it recently, and it's one of the most exciting investment stories taking shape in North America today. In short, it starts with incredible new research related to the "Bakken Trend."
This is an absolutely huge stretch of American acreage that could hold as many as 250 billion barrels of oil — possibly even as many as 500 billion.
And smack in the middle of this suddenly valuable stretch of land is an astounding undiscovered play that was going for less than $2 per share when I first wrote about it for my Special Situations subscribers.
It's already shooting up — I see a triple on these shares not too far into the future. And even higher — as much as $10 — not much longer after that.
I would love nothing more than to name it for you, right here.
But that wouldn't be the least bit fair to my paying readers. So I'll tell you what I'm going to do. If I hear from you immediately, I'll include a copy of this new Bakken Trend report, America's Secret 500 Billion Barrel Bonanza (and How It Could Make You up to Five Times Your Money), in your welcome package for Mayer's Special Situations.
The door to this incredible opportunity just swung open again in 2008. There's no telling how long it will last. That's why you must collect your share of "Chaffee Royalties" before they're gone for good.
So let's sum this up.
When you sign on for an elite, fully guaranteed subscription to Mayer's Special Situations, you immediately get...
The breaking story about the incredible new energy investment discovery right here in America, in the new report I just told you about, America's Secret 500 Billion Barrel Bonanza (and How It Could Make You up to Five Times Your Money)
You also get my exclusive new research on the "do nothing" wealth you can pile up in America's "Chaffee Royalty" opportunities, in your copy of Big Mining Money Without the Big Risks: How to Build Resource Royalty Wealth While You Sleep
A bonus special report to get you up-to-date immediately on the very best of what the rest of my members are reading about right now, called Five Stunning "Special Situation" Plays You Can't Afford to Miss
My members-only stock analysis, which I'll send directly and privately to my Mayer's Special Situations readers, once every month, with coverage of our newest exclusive on an undiscovered "special situation" stock or other alternative market play
Plus, between every full analysis report, we'll stay in steady contact each week so I can make sure you're on target with everything new that's happening in the portfolio, from what to hold to when to take gains, and more
And finally, only members will have password-protected access to the Special Situations private Web site, where you can find full backup of all alerts and updates, plus the latest news on the portfolio and downloadable copies of all your reports... so you'll never be left wondering what to do on these underreported, fast-moving and lucrative plays
Here's one more bonus: Everyone who signs on will get free access to my publisher's brand-new Agora Financial Executive Series. The Executive Series consists of two daily e-letters and provides you with an insider's view of our editorial room. First, every morning, you'll receive the Rude Awakening delivered straight to your e-mail box. Each "Rude" article enlightens you with focused, articulate essays -- each of which delves deep into some of the core investments that Agora Financial is researching. Next, you'll also receive the 5 Min. Forecast every weekday at noon. The 5 Min. Forecast aims to cut through the incredible glut of "news" by providing you with a quick-and-dirty roundup of the day's most essential ideas and not-so-common knowledge -- in five minutes or less. Normally, this would be an $195 value. But because you're willing to take me up on this trial invitation, this bonus gift is yours free.
So with all of that, what is it worth? To you, it could be worth thousands... tens of thousands... hundreds of thousands. It all depends on how ready you are to jump on these often-missed "special situation" opportunities.
I've seen other services offering half this much and less... charging as much as $2,000... $2,500... even $5,000. Yet even with the coming price hike for new members, I won't ask you to pay anything even close to that.
You'll get the full year of all of my best "Special Situation" research and updates for the reasonable introductory price of only $995.
It couldn't be more plain.
One more thing...
Because of the nature of the stocks we'll cover... and the "special situations" that make them so valuable... I simply can't expand our Mayer's Special Situations membership circle any wider.
What's more, I must insist that when you join as a subscriber, everything you discover inside the circle stays in the circle. You must promise that you won't share our list of "special situation" plays with anybody.
If that's not something you can do, this service might not be for you. Because these unique plays are intended for your eyes only. No exceptions there, either.
Of course, I'm ready to make my own promises, too...
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The Single Best Way to Insure You Never Run Out of Money
The trouble with following the financial news is that there is so much of it. Everyday brings news information, new facts, new theories – dozens of them. The financial news becomes like a dense Russian novel, with so many characters coming and going that we forget the plot.
Of course, if you’re reading Dostoevsky this summer, you can always stop, flip back and figure out what is going on. In the financial markets you can never stop. The news just keeps coming...the absurd character keep popping up...the intrigues and sub-plots get denser and more confused.
And yet, it’s in the financial markets that the plot really matters.
A serious investor is probably better off with neither television nor newspapers to distract him. In fact, he would probably be better off never reading The Daily Reckoning either. It would force him to pay attention to only what he actually knows or can find out. He might study a local bank, for example...meet its management, explore its ledgers, and parse its financial statements. He might find that it is a good investment – or a bad one. In so doing, he is much more likely to be right than the fellow who reads Barron’s and decides that it is a good time to get back into the bank shares.
But here at The Daily Reckoning , we are not investors. Our job is to keep an eye on the financial news and try to make sense of it. It is a vast and confusing story; our mission is to try to keep track of the main plot.
Yesterday brought more complicating details. The Dow sold off another 109 points. Oil rose $3.44. The dollar was up slightly...still at $1.49 per euro. And the price of gold leaped up $16.90. The 10-year T-note rose to yield 3.94%.
We suggested a possible plot outline yesterday:
Boy meets girl. Boy and girl go on spending spree. Wall Street and Washington collude to cause them to spend more than they could afford and to go much further into debt than they should. Boy and girl can’t pay their debts; they’re losing their houses. The moneybags who lent to them are going bust.
Subplot: Meanwhile, on the other side of the planet, the foreigners who kept selling them gadgets and gizmos are running into trouble. So, they’re buying less stuff to make gadgets and gizmos with. And, wouldn’t you know it, the people who sell them stuff – oil, copper, coal and so forth – are also running low on cash, because the price of their stuff is falling.
As the curtain went down last week, it looked as though the whole world economy were sinking into a soft, slow, Japan-like mud.
The storyline seems solid enough. The facts seem to fit more or less. But we have a strong feeling that there are more twists and turns in this plot...and that, when the show is over, the story will turn out be very different.
In the first place, the boys and girls may be in bigger trouble than we’ve seen so far – and there may be more of them.
“Skies Darken for Retailing as Spree Fades,” says a headline in the Wall Street Journal . U.S. retail sales fell in July for the first time in five months. Rising sales were misleading anyway; they were more a reflection of higher prices and rebate checks than of an actual increase in either the consumers’ willingness or ability to spend more.
Meredith Whitney, one of the few professional analysts who foresaw the subprime crisis, says that the downturn will be more severe than people yet realize. One in ten households overextended itself in the bubble period, she points out. Bankruptcy, default, and foreclosure rates will inevitably worsen as these Jacks and Jills roll down the hill.
Toll Bros., one of the country’s biggest builders, announced that revenues were still going down.
Anyone waiting for the financial industry to return to the glory days of 2006 may have a long wait. As a credit-fueled boom turns into a bubble, it takes more and more lending to produce an additional increment of GDP growth. In the real boom years after WWII, it took about $1.40 worth of credit to produce $1 worth of GDP growth. The ratio rose sharply after the Reagan Revolution...and now stands at about $6 of credit to every extra dollar of GDP. Of course, that is why Wall Street made so much money – it was selling credit. But it’s also why that story is history; that show is over. As the cost of growth – in terms of credit – rises, so does the cost in terms of debt service. Even at 5%, the cost of $6 of credit is 30 cents per year. If it produces $1 of GDP growth, that extra output would need a 30% profit margin to break even. Not very likely.
And the good news just continues to pour in from the housing sector. RealtyTrac reported this morning that bank seizures of U.S. homes have risen 184% since the group began tracking this data in 2005. Banks have repossessed close to 3 times the amount of homes in the United States, when compared to last year’s stats.
One in four houses sold in America today is sold at a loss, says a report on CNNMoney. That totes up to a lot of losses for the whole financial chain...the homeowner, the mortgage company, the builder, the real estate agent, and the investor who bought a mortgage-backed security.
This epic rise in foreclosures is depressing home values throughout the country. The S&P/Case-Shiller index shows that home prices fell 15.8% in May.
Real estate website Zillow.com reports that in the year leading up to June 30, almost 25% of all homes sold in the United States pulled in less than the seller originally paid.
CNN.com reports: “In Merced, Calif., 63% of homes sold during the past 12 months brought in less than what the owner paid. Prices there have fallen 40% over the past 12 months and 56% from their 2006 peak.
“About 63% of sellers in Stockton, Calif., lost money during the same period, 60% in Modesto, Calif., 55% in Las Vegas and 38% in Phoenix.
“And the trend has worsened in recent months. In Merced, 74.9% of sellers took a loss when they sold during the three months ended June 30 compared with just 28.7% during the same period in 2007.”
The bottom is still not in view – Zillow.com says, “With $3.9 million unsold homes on the market, prices will have to come down even more before the market stabilizes.”
We can all agree that many things need to occur to stabilize the U.S. economy as a whole – and there may be more of these ‘supershocks’ to the system on the way. There’s no reason, however, for you to not make a little money in the meantime. Our friends at Strategic Investment have put together a Financial Survival Library – and it’s a must-read for anyone who wants to stay afloat in the current market climate. Click here for all seven of the financial survival steps.
*** While the United States may be in greater trouble than the markets realize, China may be in less. In other words, the slump in the West may not be so soft. In the East, it may not be in a slump at all.
Retail sales in the United States are falling, but sales in China are going up at 23% per year. Even after inflation, they’re going up at 15% – the fastest pace in 9 years. Sales of gasoline are increasing at a 55% annual rate.
Incomes are rising too – real, after inflation incomes are going up at an 8% annual rate.
In other words, maybe China is not slowing down very much, after all.
Remember, if these big, emerging economies can continue to grow, it will keep the pressure on prices for raw materials. This then makes the situation worse for Americans; they pay more for food and fuel...even as their incomes and assets fall in price.
*** “Oh yes, we met a couple of years ago,” said a new friend at a party last night. “You said to buy gold. At the time I thought it was a little flakey...buying gold, that is. But then the price went up...and I thought of you.”
“Well, it isn’t going up now,” we replied. “But we wouldn’t give up on it. Not yet. Most analysts think the crisis in the financial sector is pretty much over. They think we’ve seen the worst. They don’t expect any more major banking failures. They think the dollar is coming back. And they expect the rate of inflation to moderate. They’re looking for a huge soft landing for the entire world economy.
“But financial analysis, at least on this kind of macro level, is mostly fraud. It’s impossible to keep track of all the various inputs – many of them purely psychological or emotional – and make a logical judgment about what will happen. You can form an opinion. But your opinion is usually driven by some kind of philosophical prejudice. Say, for example, you just don’t like to see all those Wall Street hotshots making huge bonuses for doing something that you know is mostly a kind of razz-ma-tazz designed to wow the little guys in the market. Then, you’re sure that they’re going to get their comeuppance, one way or another. So you look around and try to find justifications for your point of view. And there are so many facts and theories around, you can always find whatever you’re looking for.
“You know, things in the financial markets have been going very well for a very long time. Major stock market indices are down only about 15% from record highs. No major economy is even – for now – in a recession. Unemployment in the U.S. still hasn’t risen to 6%. Gold is no higher than it was 28 years ago – in nominal terms. People still lend money to the world’s biggest debtor – the U.S. government – at only 3.94% for 10 years. And the dollar is still taken as a ‘store of value,’ even though there are trillions of them in central bank vaults...and a whole rickety tower of dollar-based credits reaching up to the sun.
“But investors talk as though it were the end of the world. It’s not. It’s only the beginning of a major correction...and probably, only the beginning of the beginning.
“And when it is over, people will want more than 10% yield before they will lend to the feds. The world’s monetary system will probably have collapsed and been replaced with something new. Stocks will probably sell for less than 8 times earnings. Ten percent of the U.S. population will probably have gone bust – that’s 30 million people. And gold will probably sell for more than $2,000 an ounce.
“Of course,” we had to admit, “between here and there, anything could happen.”
[Ed. Note: But we know that our long-time DR sufferers have been paying close attention, and preparing for the long correction ahead. In fact, some very savvy investors have taken it upon themselves to secure an extra paycheck – without the hassle of extra work. If you haven’t secured your extra income yet, don’t wait any longer. The next payday is tomorrow, August 15...
*** “Won’t these string beans ever stop?” our cook wanted to know. She’s already filled the freezer with them...and already stuffed every jar we own with canned green beans. And she’s served them up at every meal in every possible way. Fried. Steamed. Grilled. Boiled. Braised. In soufflés. In casseroles. In soups. In stews. In salads. She’s probably slipped them into some desserts too, but we didn’t detect them.
Damien had just come up to the kitchen with another 5-gallon bucket full of them.
“Oh no...not more green beans,” said Edward. “We eat green beans all the time. I’ll never want to see another green bean as long as I live.”
“Then don’t look in the pantry,” said the cook.
Posted by
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5:21:00 AM
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An Incredible Buying Opportunity
Yesterday, we posed a 'what if?' It was not a prediction; just an exploration: what if the world economy goes into a long, slow, soft Japan-like slump?
What if stocks continue to go nowhere? Yesterday, the Dow lost 139 points, after several big gains in the last few sessions. Up. Down. Up. Down. Stocks are down 15% � 20% all over the world (except for Shanghai's big 50% loss) for the year. Over the last ten years, markets in the East and emerging economies are still up � many of them by huge margins. But the United States and other developing markets are mostly flat. Adjusted for inflation, investors have lost 20% to 40% of their money.
And what if the financial crisis that began with subprime infects the rest of the industry? Today comes word that JP Morgan lost $1.5 billion since July � nearly a year after the problems with subprime debt were out in the open. Fannie Mae lost more than $2 billion in the last quarter. Freddie Mac lost $800 million. Those losses were not from subprime loans. Worrisome losses have already been reported in credit card debt, student loans, private equity and auto finance. And now even "borrowers with good credit defaulting on homes," says CNNMoney.
And what if housing continues to fall? Prices are down nearly 20% nationwide � and still declining. Nearly one third of all buyers over the last 5 years now have negative equity, according to a report out yesterday. Of those who bought in 2006, 45% are upside down.
Erratum: last week, we reported a startling fact: that, taken as a whole, America's homeowners have negative equity. It was startling...and untrue. We doubted it was true when we reported it, but we must have gotten distracted before we checked it. What is true is that the percentage of their houses owned by Americans � their equity � is less than the percentage owned by the mortgage lenders. They are not "upside down," as we reported, because their houses are worth more than their mortgages. They are merely "inside out," people who only appear to be homeowners on the outside. Inside, they are renting from the finance company.
And what if the finance industry and housing don't 'bounce back'? It will mean a long period with neither the juice of credit nor the elixir of housing price gains to get the party going again.
And what if consumers react in the way they normally react? That is, what if consumers actually stop consuming so much? There is mounting evidence that what must happen is happening now. The U.S. trade deficit unexpectedly fell last month; Americans are exporting more and buying less. Retail sales are slipping. Unemployment is rising. Drivers are driving fewer miles. Restaurants report fewer customers. Las Vegas reports fewer gamblers; and for the first time in many, many years spiders are said to weave their webs in brothel doorways without being disturbed.
And what if consumers, householders, investors, and businessmen all begin to downsize? Today's news from Texas is that old people are downsizing their retirements; they're making them shorter and later. The Dallas Morning News tells of a survey by the AARP showing more people nearing retirement age are continuing to work...or even going back to work. Many had counted on the value of their houses to finance retirement. But house prices are down as much as 40% in some areas, putting a big hole in retirement budgets.
And what if China, India and other emerging markets don't emerge as fast as we had hoped? What if they, too, suffer from a buyers strike in the developed nations? What if they can't sell so many toaster ovens...and so much bric a brac? They wouldn't need as much iron as people estimated. Nor as much coal. Nor copper. Or oil.
And what if the whole world began to slack off � with less lending, less buying, fewer container ships crossing the oceans, fewer commercial airlines, and more saving? What if Americans rediscovered frugality? What if the whole world began to act like the Japanese?
What if the whole, globablized world economy sank into a long, soft, slow Japan-like slump, in other words?
"It should come as no surprise that the U.S. economic malaise is now becoming a global phenomenon," writes Dana Samuelson. "After dodging the U.S. slowdown last year, the 15-nation eurozone economy appears to have shrunk in Q2, for the first time since the common currency's introduction in 1999. Firm figures are still coming in, but Italy's GDP contracted by 0.3% in Q2 after growing by a scant 0.5% in Q1. And Germany, the largest eurozone economy and the engine of G7 growth in recent years, contracted sharply in the second quarter, shrinking by as much as 1.5%, according The Wall Street Journal Europe . Eurozone growth certainly slowed to a crawl in the first quarter. According to RGE Monitor , Q1 growth in the UK fell to 0.4%, Ireland to 0.8%, Italy to 0.5%, and Spain to 0.4%. Estonia and Latvia contracted sharply, while Q1 GDP growth in Canada fell to 0.3% and New Zealand shrank by 0.3%. As in the U.S., housing booms in Spain, Portugal and Ireland are collapsing, while the euro's recent appreciation hurt companies that export. Japan, too, is at risk of a recession as exports fell in June for the first time since 2003 and unemployment reached 4.1 percent, almost a two-year high."
And what if the gold market is confirming this worldwide slowdown? Yesterday, the price of gold fell another $13, to $814. What to make of it? Is this some vast conspiracy among central banks to drive the price down? Or have investors � including central bankers themselves � decided that they don't need gold? Have they figured out that the dollar is as 'good as gold' � or better? Gold is falling. The dollar is rising. Paper money � of no intrinsic value � is beating out the old-fashioned, natural, limited, useful (Lenin said he would use it on the walls of public latrines) yellow metal.
Would it make sense...maybe...if our 'what if' turned out to be correct? A worldwide slump would take the inflationary pressure off commodities and gold.
But wait. There's always more to the story....
*** There are only two major problems with our "what if" above. First, America cannot afford a Japan-like slump...and second, the feds won't allow it.
As to the first, a long, soft on-again, off-again recession may have been survivable � barely � when we first saw it coming in 2000. It would have been similar to the recession of the '70s. People wouldn't have liked it, but they might have used it to get themselves in better shape � with less debt and more savings. Instead the feds fought the downturn with the most reckless money policy in U.S. history. And they won � meaning, they succeeded in getting people to throw caution to the wind.
Nouriel Roubini was interviewed in Barron's last week. He sees a recession coming that will be "more painful than any since the Depression...We are in the second inning of a severe, protracted recession, which started in the first quarter of this year and is going to last at least 18 months, through the middle of next year... A systemic banking crisis will go on for awhile, with hundreds of banks going belly up."
Roubini notes that 72% of GDP is attributable to consumer spending and that the consumer has no money. The feds handed out billions in 'tax rebates;' even so, retail sales in June increased only 0.1%. Most of the money was used to pay down debt...or just to keep up with higher-priced food and fuel. Consumer debt was 100% of disposable income in 2000; now it's 140%. Bankruptcies are up 30%.
And the economy is still, officially, growing! You can imagine what would happen in a real downturn. Today, a severe, drawn-out recession would be devastating for millions of people. They would lose their jobs and their homes. Naturally, they would expect the government to "do something."
That brings is to the second problem with our 'what if' ramble � it presumes a world in which markets are allowed to function. In the real world we have a very funny monetary system that permits the financial authorities of the United States of America to create money, almost at will. These authorities have said many times that if the U.S. has stable consumer prices it will be over their dead bodies. Which would be fine with us. But the dollar-based system is inherently, inevitably inflationary. And even though this week's markets are signaling a victory for the natural market forces of deflation, the United States still has a lot of ammunition. It has already nationalized its two big mortgage backers � Fannie and Freddie. It has handed out more than a hundred billion in rebates. It has planned to spend as much as $300 billion to rescue homeowners. And it still has its printing presses.
Thanks to U.S. printing presses, inflation has gone up all over the globe. As reported in Newsweek recently, a Morgan Stanley report released in late June summed it up: "Much to our own surprise, we find that 50 of the 190 or so countries in the world now have inflation running at double-digit rates, including most emerging markets. In other words, about half the world's population is already experiencing double-digit price increases."
What will happen? We don't know. But we doubt the whole world will fall into cotton and sleep like the Japanese...not without a fight!
*** "That movie upset me," said Elizabeth, after watching Kinsey . We didn't see it, but we gather that it's a film about the fellow who tried to make watching pornography respectable and ended up making it boring.
"It was sad. I guess the point of the movie was that you can't take the romance and mystery out of sex. You can try to study it clinically. But you are caught up in it too. You are one of the people you are looking at. So, it's like looking at yourself in the mirror; you tend to see what you want.
"It was a good movie, in some ways. It portrayed the complexity of Kinsey's personality fairly well...and how it affected his marriage...and how they were both affected by the powerful forces of sexuality and love. Still, there was something disturbing about it... it makes you realize how fragile your own situation can be...and how you can be swept along by things your rational mind cannot control...and how your mind merely finds reasons and justifications for doing what you want to do in some deeper, stronger, less rational part of your brain...or maybe your heart."
You may have heard about Brazil's Tupi and Carioca, which may be the two biggest oil fields discovered in the last 30 years. What makes these discoveries particularly remarkable, in addition to their size, is where they are. They lie underwater, hundreds of miles off the coast of Brazil. Call it "blue water energy." Read on...
BLUE WATER ENERGY � THE OFFSHORE OIL BOOM
by Chris Mayer
The Adventures of Tintin is a comic book series started back in 1929. My 9-year-old son loves it. I enjoy reading it along with him because the hero of the series, a young Belgian reporter named Tintin, often finds himself in interesting historical settings and exotic places. (My favorite story is "The Blue Lotus", which takes place during Japan's occupation of China in the 1930s.)
In one of these adventures, Tintin discovers oil on old American Indian lands. In a series of panels, a little construction boom transforms a wilderness into a busy city in a matter of hours. It's funny, but it also makes a point: After you discover oil, there is a whole lot that comes after that. The infrastructure of the oil business, you might say. I was thinking of Tintin after reading more about Brazil's big oil discoveries.
You've probably heard about Brazil's Tupi and Carioca, which may be the two biggest oil fields discovered in the last 30 years.
The Tupi field may hold 8 billion barrels of oil. If true, only the 15 billion-barrel Kashagan field in Kazakhstan, discovered in 2000, is larger. Tupi, though, may be small potatoes next to Carioca. This latter field may hold 33 billion barrels of oil. Again, if true, Carioca would be the third biggest oil discovery in history, behind only the mammoth Ghawar in Saudi Arabia and the Burgan in Kuwait. Brazil has another field it is assessing now, called Jupiter, which could be of the same scale as Tupi
What makes these discoveries particularly remarkable, in addition to their size, is where they are. They lie underwater, hundreds of miles off the coast of Brazil. Call it "blue water energy."
Tupi's oil, for instance, is 7,000 feet underwater and beneath another 7,000 feet of rock, sand and salt. It costs about $240 million just to drill the well there, which is like paying a big cover charge to hear a band you may or may not be happy with. Who knows how many more hundreds of millions it could take to get the oil out and to market?
One thing is for sure. Petrobras, the Brazilian oil company that discovered the oil, will spend a lot of money trying. Already, Petrobras has plans to spend more than $20 billion for marine support vessels and offshore drilling equipment. Those are big numbers, especially when you consider how tight the market already is for these things � not to mention the shortage of men and material to make more.
For perspective, consider that Petrobras has already leased nearly 80% of the world's deep-water drilling vessels. It will certainly try to lock up more rigs and vessels. But so is the whole industry, which is why drilling companies are making money hand over fist like rose sellers on Valentine's Day.
It's not just in Brazilian waters that big prizes lurk. There are meaningful discoveries of oil and gas in the South China Sea, off the west coast of Africa and even in the waters off Trinidad and in many more wet places. Soon we could be poking around for oil beneath the Arctic seabed.
We'll need lots of subsea wells and platforms and other goodies to put out there in those watery plains. Just consider the pipelines alone. We'll need miles and miles of offshore pipelines to bring the oil to market. See the next chart, which shows the miles of pipeline needed by region.
According to Quest Offshore, between 2007-2011, the industry will have laid down 35,000 miles of pipeline. That's a lot of steel. And a lot of pipelay barges to do the work. And crews. It's a demand that should continue for years to come, even if the oil price comes down.
That's only part of the story, though. Here's the other: the existing miles of pipelines that are getting old. This is a familiar theme in our pages. We've often talked about the creaky infrastructure surrounding everything from roads and bridges to water and power supply. Matt Simmons, the oft-quoted energy analyst, likes to say, "Rust never sleeps."
The problem is particularly acute in seawater. It's more troublesome because you can't see it. Such infrastructure requires a lot of maintenance, which is not cheap. On the heels of two decades of low oil prices, much of the industry deferred a lot of maintenance. This problem extends beyond just the offshore oil and gas business.
The whole oil and gas infrastructure is a "vast spider web of steel." There are over 335,000 miles of pipelines in the U.S. alone.
There over hundreds of refineries in the world, as well as thousands of tank farms, gas stations and oil and gas wells. Simmons estimates that 90% of our offshore rigs are too old, pushing the limits of what we know they can do. The average age of the world's offshore jackup fleet � over 400 rigs � is over 24 years. Our experience running them past 25 years is limited. Plus, newer deepwater projects are pushing the limits of how deep we can go, putting bigger strains on everything.
As Simmons says: "The entire value chain is built of steel. Steel begins to corrode the day it is cast."
The risk of failure � of leaks or breakages � is high. "If the world wants to continue using energy, its assets need to be rebuilt. Simple law of nature," Simmons says. "The construction job will rival the combination of building the World War II war machine, the Marshall Plan rebuilding of Europe and the post-World War II Interstate Highway System."
Simmons gives us one example, just a snippet of the infrastructure the industry is building. It is a $1.5 trillion energy project in the Middle East � Shell's massive gas-to-liquids plant in Qatar. It is as large as 450 football fields. It will require 300,000 tons of steel and employ 35,000 workers. All the while, the prices of steel, cement, copper, etc., all continue to rise. People, too, are hard to find, like parking spaces in Manhattan. "We let Nintendo work stations replace skilled oil workers," Simmons says.
It's a massive opportunity. The offshore boom, and Brazil's offshore scores, only adds to the urgency of it all. I'm looking now at some of the companies that will participate in the big offshore infrastructure build-out. They also benefit from replacement work, too.
If Herge, the artist behind the Tintin series, were alive today, he wouldn't be surprised to see the rush of infrastructure that follows big oil discoveries. Some things never change. He probably would be surprised, though, to hear about oil fields deep under the world's big blue seas.
Sometimes you can buy assets in the stock market for cheaper than what it would cost you to get those same assets in the private market. Taking advantage of the gaps between the two is what investing like a dealmaker is all about. Such a gap, it seems, has opened up in the mining sector.
I think the gap exists because people in the mining business understand two things that stock market investors have yet to fully grasp. First, there is a growing scarcity of high-quality mining assets. Second, there is a shortage of skilled workers. Simmons calls it a "blue-collar boom in mining." So stock prices don't yet fully reflect these realities, and prices are cheaper than prices miners get when they buy assets from each other � or start them up from scratch.
First, let's size up the scarcity of high-quality mining assets, which has led to something of a race to lock them down. For evidence of that, we need look no further than the merger-and-acquisition market. For the first five months of the year, the announced mining takeovers tripled compared with a year ago. The total, about $200 billion in deals, puts mining mergers at the top of the M&A list for the first time since Bloomberg began compiling the numbers, in 1998. Over the prior two years, financial services companies have led the pack.
This feat is even more impressive when you consider the storm in which this financial torch has passed � amid a U.S. recession, growing inflation and an unfolding credit crisis. Global M&A overall is down 37%. Yet there is the mining industry atop the dealmakers' pile, grinning ear to ear and still flush with cash for even more and bigger deals. The world's biggest mining transaction ever would be BHP Billiton's $147 billion bid for Rio Tinto. Transactions this size would have been unimaginable even five years ago.
What this means, in my view, is that mining companies think it is cheaper to buy mining stocks than it is to open new mines. It's pretty simple. If you can buy eggs for $1 or raise your own for $3, you buy eggs all day long. New mines are hard to bring online. And it takes a lot of time. As a Morgan Stanley adviser recently put it, "If companies want to grow, they can either find something that might take 10 years to develop or buy something," he said. Even so, exploration is up, as well.
There is a lot of risk with new mines, too. Especially since many of the new sources of mines are in politically unstable parts of the world, like Africa, or are difficult and expensive to mine. What new deposits have been found also tend to have lower grades. That means the resource isn't as concentrated and there is more filler to process to get to the good stuff, be it copper, zinc, iron ore or what-have-you. Repeatedly, too, I hear mining companies warn about rising costs � for labor, equipment, energy and transportation.
The newer twist to the metals story is the power supply problems of many countries � South Africa, Chile, China and others � all important producers. Years of underinvestment in power supply � an issue I've written to you about before � is a global problem. And you can't fix it by flicking on a switch. It takes years to build power plants and add capacity.
South Africa is a particularly egregious case of power shortages. The effect on production is devastating. In the first quarter, mining output fell 22%, to its lowest level in 40 years. Mining companies in South Africa face the risk of repeated power outages and/or forced reductions.
Chile is suffering from severe power shortages, too. It depends on Argentina and Bolivia for natural gas. As the latter two countries consume more natural gas, they export less to Chile. Chile's water levels are also 40% lower than a year ago. Since Chile depends on hydroelectric power, this is a big problem. Electricity costs are skyrocketing in Chile. As it makes about 35% of the world's copper, its ability to expand or even maintain that production in the face of power shortages is in doubt.
These are just two examples, but there are certainly many more. Another factor holding back new supply and making existing mining operations so valuable is the lack of skilled people. Companies doing everything from mining coal to operating offshore rigs all note the big challenge in finding enough qualified people.
The traditional skills are in short supply � people who can run a machine shop or a mining operation, for example. These skills are also not easily acquired. Yet a wide gulf exists between what these people make and what the guy running a mortgage trading desk on Wall Street makes.
As Michael Aronstein, a longtime money manager and strategist, recently put it:
"The relative compensation [difference] between somebody who is sitting on a derivatives desk and a guy who actually can diagnose and repair a locomotive has probably reached its millennial extreme... But that's going to change. I think we'll see the narrowing of all these spreads, a process that started at the lows in '02."
Add all this up � the hot M&A market, the power supply problems, worker shortages and more � and the bottom line is that supply is having a hard time meeting demand.
And demand is there, fueled by booming economies in China, India and Russia. In fact, much of the M&A business comes from these three countries. They need new supplies of metals to keep up with demand at home. For example, Aluminum Corp. of China and Sinosteel have spent more than $16 billion buying mining assets across the globe. These companies are looking to secure raw materials such as coal and iron ore.
Mining stocks, not surprisingly, have done well over the past couple of years, even as the broader market has gone nowhere.
For example, S&P's Metals and Mining ETF, a decent proxy for mining stocks, has doubled over the past two years. The overall market has barely budged.
Yet the view from the ground, as the foregoing argues, seems to be that mining stocks may still be too cheap.
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at
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Tech Opportunities Closer to Ground
One is the persistent pessimism I'm seeing in both the media and the polls. I just looked at Gallup's daily numbers, and the phenomenon is clear. More than three-quarters of Americans believe we are in some sort of recession. 40% believe their standard of living will decline in the future. Almost a third believe the next generation will be worse off than this one.
Good grief! Given that the bill for years of politicized mortgage policies is finally coming due, it is remarkable that the economy is growing. It is possible, of course, that we will have a recession. Given the reality of the business cycle, in fact, it's a safe bet we will. Nothing irritates me more than economists and analysts who act as if they have some special knowledge when they warn of a downturn.
Just so I can say I predicted it too, let me speak my prophecy: Someday, we're going to have two consecutive quarters of negative economic growth. Probably. Of course, it won't be for two more quarters, since we're still growing positively now.
Guaranteed Triple-Digit Gains
Then, however, we'll return to increasingly rapid economic growth. New products and technologies will continue to extend and revolutionize our healthy lives. Increasingly powerful financial tools and rapidly growing international free market forces will prevail.
I'm not saying this, by the way, out of some Pollyannaish desire to cheer up readers. Successful investing requires rationality. It is irrational, given the evidence, to bet against the market forces changing the world ― literally.
Let me quote James Gwartney, director of the Stavros Center for the Advancement of Free Enterprise and Economic Education at Florida State University in Tallahassee. I started reading Gwartney, incidentally, in the late '70s, and no one has done a better job of predicting the future than he.
"This is, by far, the most stable quarter of a century in the history of the United States," Gwartney recently told a Florida paper. "By way of contrast, the U.S. economy was in recession more than 25% of the time during the first eight decades of the 20th century."
Not that we don't in some sense deserve a recession, or even a depression. For economists, who understand how to encourage economic growth, our anemic current state is distressing. We're growing, but both major U.S. political parties have dropped the ball when it comes to responsible governance. Fortunately, however, consumers have grown far more skeptical in recent decades. Many institutions have prepared for the consequences of this irresponsibility. This is lessening the impact considerably.
Moreover, Eastern Europe and Asia have joined the global economy in a huge way. Their growth is an enormous buffer that counters the impact of stupid U.S. policies that once would have tipped us over the edge.
What else has contributed to this pessimism in the midst of unparalleled recent improvements in our standard of living? Well, obviously, the mainstream media are doing their best to paint the economy as failing due to the current administration. Presidents are not the primary political influence on the U.S. economy, but that's the nature of a financially ignorant journalistic community. Moreover, the old media are, in fact, in a real economic depression.
The revenues of once mighty players like The New York Times, Los Angeles Times, the BBC and the broadcast networks are evaporating. Journalistic staffs are being slashed. Advertising dollars are shifting rapidly to new media. This is a really bad time to be an old-school journalist, and it colors the entire media's perspective.
Don't let their attitudes get to you. It may be the end of the world for old media, but that's all. These are near-perfect conditions for long-term investors watching new markets emerge to replace the old dinosaurs. To the extent that the public is convinced that things are getting worse, stock prices will be artificially low.
Today, I'd just like to point out one unlikely dinosaur ― satellite radio. There's a lot of buzz about the merger of seemingly high-tech Sirius and XM satellite services. On the surface, the government's change of heart regarding their monopolistic consolidation implies future growth. It doesn't. It's an admission that neither is likely to survive in direct competition with the wireless Web.
Satellite radio is nearly obsolete, if it ever wasn't. The explosion in high-speed wireless coverage and speed guarantees that subscription radio will never achieve serious success. Cars, the only place satellite ever had a real advantage, are moving to wireless Web connectivity. Within a few years, phone/media players will automatically connect to automotive entertainment centers, probably via Bluetooth. Already, all the media on your hard drive and all your favorite Web-based entertainment sites are accessible through phones ― and often free of charge via Wi-Fi.
There will, though, be lots of opportunities to invest in the new players in this space. More on that later in the future…
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The Worst is to Come
In just a few minutes you will be invited into an exclusive circle that can actually predict which way stocks are headed. No kidding.
A few savvy investors have discovered a few "hidden" documents that give them an inside track on several of the latest stock moves.
And for the next 2 days, you can join them at an incredible discount. Just click the link below. But hurry. The clock is ticking...
The Power of "100-F" Documents
Today, we take a break. Yes, dear, dear reader...there will be little reckoning today. Short Fuse will write tomorrow's issue � and then The Daily Reckoning is taking the rest of the week off, as Fuse and Addison are traveling to Omaha for the premier of I.O.U.S.A. Elizabeth needs help preparing for her big hullabaloo. We're expecting about 150 people for a soiree on Thursday night, about which, more below...
Before we leave you, though...we have just a couple thoughts...
We're sticking with our views and our investments � either until we're proven wrong or we go broke, or both.
Our view is that the great dollar-based credit expansion of the last half-century is coming to an end. And our guess is that it will end with BOTH a bang and a whimper � that is, both a deflationary contraction...and an inflationary blow-off. A deflationary contraction is the market's normal response to an inflationary boom. And an inflationary blow-off is the market manipulators' normal response to a deflationary contraction; but, we hasten to add, there is no guarantee that they can pull it off.
So, as usual, we live in a world of great unknowns...and lesser unknowns...and things we don't even know we don't know. What we do know is that stocks have not yet bottomed out (they are nowhere near their low points)...and bonds are still expensive (people still lend to the U.S. government for 10 years at less than 4% � that's substantially less than the current consumer inflation rate)...and the dollar is still treated with respect, even though its long-term value is zero. There is a lot that can go wrong that hasn't gone wrong yet, in other words. Until it does, we'll stick with gold.
*** "The worst is to come." Sometimes it's nice to hear things laid out bluntly � and long time sufferers know that we aim to do that at The Daily Reckoning , as well. Former chief economist of the IMF, Professor Kenneth Rogoff is not one to sugarcoat or mince words. He told attendees of a conference in Singapore that in the worldwide credit crunch, "The U.S. is not out of the woods. I think the financial crisis is at a halfway point, perhaps. I would even go further to say the worst is to come."
Professor Glass-is-Half-Full went on to say: "We're not just going to see mid-sized banks go under in the next few months, we're going to see a big one � one of the big investment banks or big banks."
And the dark twins of mortgage finance didn't escape unscathed, not by a long shot. Yesterday, on the heels of a report that suggested that the Treasury may have no choice but to nationalize Fannie and Freddie, investors began dumping shares.
The chance of nationalization of the mortgage giants scares the beejeezus of out foreign investors, especially our friends in Asia. And with good reason...while Japan wasn't too exposed to subprime, they do hold around ¥9.6 trillion in bonds and mortgage-backed paper issued by finance groups. We all know that these securities aren't guaranteed by the U.S. government. Whoops...
*** As if there wasn't enough bad press for Fannie, David Hilzenrath at the Washington Post printed a pretty damning article, titled "Fannies's Perilous Pursuit of Subprime Loans."
The article is definitely worth a read through, and here are some highlights to tide you over:
In a confidential memo to his board, chief executive Daniel Mudd (has anyone ever had a more unfortunate last name?) "said one of Fannie Mae's achievements in 2006 was expanding its involvement in the market for subprime and other nontraditional mortgages. He called it a step 'toward optimizing our business.'"
We know...yikes. But wait, it gets worse. The Post continues:
"Internal documents show that even late in the housing bubble, Fannie Mae was drawn to risky loans by a variety of temptations, including the desire to increase its market share and fulfill government quotas for the support of low-income borrowers.
"Fannie Mae documents from the period, obtained by The Washington Post , paint a picture of a company with the dual incentives of fostering affordable housing and making money, and of one caught between the imperatives of increasing its market share while avoiding excessive risk. In a bid to juggle these demands, the company's executives took on risks they either misunderstood or unduly minimized.
"Fannie Mae aimed to benefit from subprime loans and expand the market for them � and hoped to pass much of the risk on to others, documents show. Along with subprime loans, which were typically issued to borrowers with blemished credit, the company targeted so-called Alt-A loans, which were often made with no verification of the borrower's income."
And so on. While it's not a pretty picture, the article doesn't say anything that everyone didn't already assume.
*** Meanwhile, back at home, people are already coming and going so fast � we can barely keep up with them. Jules came home last night. Henry is leaving today � as a first year student at the University of Virginia; he has to show up early. And as a "foreign student," he has to go earlier still.
"Are you sure you're a 'foreign student'?" we wanted to know.
"Yeah...I haven't lived in the U.S. since I was 6 years old. And I've only studied in French. So I'm considered as a foreigner."
Tomorrow, cousins...daughters...and friends arrive for the big party.
The original reason for the party was a big birthday milestone. Your editor turns 60 in a couple of weeks. Then, we realized that most of our friends and family couldn't make it to France...so we planned a another party for Annapolis, Maryland a week or two later. But since the party in France was already underway, we turned it into a "summer celebration." Celebration of what? Well, we'll have some explaining to do...
The Global Financial Panic of 2008
Behind the closed doors of a private meeting room at the exclusive Four Seasons restaurant in New York City, economic history was recently made.
By private invitation, 13 of the most respected financial advisers in the world came to New York City for a secret, economic summit.
Why? You already know why. The economy is teetering on the brink. The dollar is falling. Consumer confidence is at an all-time low. Gas prices are obscene. Food prices are going through the roof. And they've even begun to ration rice at some major food marts. This is scary stuff.
The agenda was simple: What are solutions that people can use now to protect them from the financial challenges? The response: an outpouring of financial secrets, advice and investment recommendations like nothing ever experienced.
The U.S. had taken advantage of temporary confusion in Russia, during the ten-year-long post-Soviet-collapse interval, and set up a client government in Georgia, complete with military advisors, sales of weapons, and even the promise of club membership in the Western alliance known as NATO. These blandishments were all in the service of the Baku-to-Ceyhan oil pipeline, which was designed specifically to drain the oil region around the Caspian Basin with an outlet on the Mediterranean, avoiding unfriendly nations all along the way.
At the time this gambit was first set up, in the early 1990s, there was some notion (or wish, really) among the so-called western powers that the Caspian would provide an end-run around OPEC and the Arabs, as well as the Persians, and deliver all the oil that the US and Europe would ever need � a foolish wish and a dumb gambit, as things have turned out.
For one thing, the latterly explorations of this very old oil region � first opened to drilling in the 19th century � proved somewhat disappointing. U.S. officials had been touting it as like unto "another Saudi Arabia" but the oil actually produced from the new drilling areas of Kazakhstan, Turkmenistan, and the other Stans turned out to be preponderantly heavy-and-sour crudes, in smaller quantities than previously dreamed-of, and harder to transport across the extremely challenging terrain to even get to the pipeline head in Baku.
Meanwhile, Russia got its house in order under the non-senile, non-alcoholic Vladimir Putin, and woke up along about 2007 to find itself the leading oil and natural gas producer in the world. Among the various consequences of this was Russia's reemergence as a new kind of world power � an energy resource power, with the energy destiny of Europe pretty much in its hands. Also, meanwhile, the USA had set up other client states in the ring of former Soviet republics along Russia's southern underbelly, complete with U.S. military bases, while fighting active engagements in Iraq and Afghanistan. Now, if this wasn't the dumbest, vainest move in modern geopolitical history!
It's one thing that U.S. foreign policy wonks imagined that Russia would remain in a coma forever, but the idea that we could encircle Russia strategically with defensible bases in landlocked mountainous countries halfway around the world...? You have to ask what were they smoking over at the Pentagon and the CIA and the NSC?
So, this asinine policy has now come to grief. Not only does Russia stand to gain control over the Baku-to-Ceyhan pipeline, but we now have every indication that they will bring the states on its southern flank back into an active sphere of influence, and there is really not a damn thing that the U.S. can pretend to do about it.
We could have spent the past ten years getting our own house in order � waking up to the obsolescence of our suburban life-style, scaling back on the Happy Motoring, reconnecting our cities with world-class passenger rail, creating wealth by producing things of value (instead of resorting to financial racketeering), protecting our borders, and taking the necessary measures to defend and update our own industries. Instead, we pissed our time and resources away. Nations do make tragic errors of the collective will. The cluelessness of George Bush is nothing less than a perfect metaphor for the failure of a whole generation. The Boomers will be identified as the generation that wrecked America.
So, as the vacation season winds down, this country greets a new reality. We miscalculated in Western and Central Asia. Russia still "owns" that part of the world. Are we going to extend our current land wars there into the even more distant and landlocked Stan-nations? At some point, as we face financial and military exhaustion, we have to ask ourselves if we can even successfully evacuate our personnel from the far-flung bases in Uzbekistan and Kyrgyzstan.
This must be an equally sobering moment for Europe, and an additional reason for the recent plunge in the relative value of the Euro, for Europe is now at the mercy of Russia in terms of staying warm in the winter, running their kitchen stoves, and keeping the lights on. Russia also exerts substantial financial leverage over the U.S. in all the dollars and securitized U.S. debt paper it holds. In effect, Russia can shake the U.S. banking system at will now by threatening to dump its dollar holdings.
The American banking system may not need a shove from Russia to fall on its face. It's effectively dead now, just lurching around zombie-like from one loan "window" to the next pretending to "borrow" capital � while handing over shreds of its moldy clothing as "collateral" to the Federal Reserve. The entire US, beyond the banks, is becoming a land of the walking dead. Business is dying, home-ownership has become a death dance, whole regions are turning into wastelands of "for sale" signs, empty parking lots, vacant buildings, and dashed hopes. And all this beats a path directly to a failure of collective national imagination. We really don't know what's going on.
The fantasy that we can sustain our influence nine thousand miles away, when we can't even get our act together in Ohio is just a dark joke. One might state categorically that it would be a salubrious thing for America to knock off all its vaunted "dreaming" and just wake up.
In case you couldn't join us at this year's Agora Financial Investment Symposium in Vancouver, you don't have to miss out completely. Listen to Mr. Kunstler, and the rest of the elite group of speakers we had this year, at your leisure...in your living room...in your car on the way to work...on your iPod as you lay out on the beach.
James Kunstler has worked as a reporter and feature writer for a number of newspapers, and finally as a staff writer for Rolling Stone Magazine . In 1975, he dropped out to write books on a full-time basis.
His latest nonfiction book, The Long Emergency describes the changes that American society faces in the 21st century. Discerning an imminent future of protracted socioeconomic crisis, Kunstler foresees the progressive dilapidation of subdivisions and strip malls, the depopulation of the American Southwest, and, amid a world at war over oil, military invasions of the West Coast; when the convulsion subsides, Americans will live in smaller places and eat locally grown food
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What to Buy in Post-Musharraf Pakistan
After the December 2007 assassination of Prime Minister Benazir Bhutto, the Karachi Stock Exchange plummeted along with Pakistan stocks... with a delay caused by a government suspension of trading.
But on the market's reopen, Pakistan's financial markets were plunged into economic and political uncertainty, as fears of waning foreign investor sentiment raged.
But where there's crisis, there's wealth.
It's known as "blood in the streets investing" or "crisis investing."
It's not for everyone. Crisis investing may seem cold, heartless, and a cheap way to make a buck.
In fact, most investors won't touch a ghastly scene. And that's precisely why it works.
While the masses are selling, those who can stomach the wreckage step in and buy quality companies at significant discounts.
As with the case of the unfortunate Bhutto assassination, investors waited for the news to be fully disseminated, and for the news to begin tapering off. At that point, they bought the damaged stocks, and waited for a recovery.
Crisis investors always look for the political turmoil... financial hardships... assassinations... bloody uprisings... the instances that seed wealth.
Crisis breeds opportunity, and it's been exemplified many times.
・ Had you bought MCB Bank (MCBBI) for example after a fall from $14 to $12, you stood to profit on the recovery from $12 to more than $15.
・ NetSol (NTWK) fell from $2.75 to about $1.75, only to recover from $1.75 to $2.50.
・ Pakistan Oil & Gas Development (ODVCI) fell from $21 to $18.50 only to recover to $22 shortly thereafter.
History of Crisis Investing Opportunities
In 2007, for example, the Bovespa sold off and later recovered based on the market's absorption of U.S. rate hike fears. Those who sold at or near the bottom of the sell-off missed the opportunity to profit as the IGBC rose 402.03 points, or 6.5%, two days later, and to pre-fear levels a year later.
The U.S. markets sold off following the March 13, 2007 Mortgage Bankers Association's most unflattering report on mortgage delinquencies. Solely on fears that heavy delinquencies would destabilize the U.S. economy, the Dow plunged 242.66 points, or 1.97%. The S&P 500 tumbled 28.65 points. The Nasdaq fell 51.72 points, or 2.15%. And the Volatility Index (VIX) spiked from 13 to more than 21.
In 2001, for example, severe political and economic crises stripped 50% off the Turkish lira, as hundreds lost their jobs. But had you bought the "crisis investment" opportunity, buying shares of strong, but beaten-down companies, you'd have made a small fortune. Turkcell, for example, plunged from $24 to $1.50 only to recover to $16.52 following the crisis.
Even George Soros has used crisis investments to his advantage. He made a billion dollars in one day playing England's Black Wednesday currency crisis.
Truth told... When crises, such as Bhutto's assassination, occur, be prepared to buy. Buying "blood in the streets" may sound cold, but it's proven to be profitable.
How To Invest in Post- Musharraf Pakistan
Faced with growing threats of impeachment by the ruling coalition government, Musharraf gave in and announced he was stepping down. "After viewing the situation and consulting legal advisers and political allies, with their advice I have decided to resign," Musharraf said. "Please accept this decision. I am not thinking on personal levels, but Pakistan first. Take care of Pakistan."
And it was no surprise when Pakistani stocks flew on news that President Pervez Musharraf was stepping down. We had a crisis over Musharraf and political turmoil. We had our opportunity to buy on Musharraf's announcement. Crisis bred an opportunity.
So it came as no surprise when the Karachi Stock Exchange jumped about 5% to 10,719 on the news. Investors were buying the opportunity on the expectation that the change would end political deadlock
While there's still time to buy the post-turmoil stocks we mentioned above, the rally's sustainability will depend on who replaces Musharraf and how the fiscal policies would be resolved.
Crisis investing - you can buy the whole seat, but you'll only need the edge.
Good Investing,
Ian L. Cooper
http://www.wealthdaily.net
P.S. Options Trading Pit Has Launched
With the fall of the UK economy, subprime, Alt-A, and banking institutions, the major breakdown of the Dow... and my latest predictions of US and global economies spiraling out of control, the markets in the coming months will offer some incredible investment opportunities.
While some of you may know me from past options trading services, my 4,500% cumulative gains of 2007, and gains such as these...
* Fremont General September 2007 12.50 puts - 291% in 16 days* Lennar January 2008 25 puts - 279% in 40 days
* Pulte January 2008 15 puts - 224% in 40 days
* New Century January 2008 25 puts - 214% in 16 days
* Centex January 2008 25 puts - 207% in 40 days
* Countrywide January 2008 27.50 puts - 203% in 69 days
* Thornburg October 20 2007 puts - 188% in 6 days
* MGIC Investments December 35 puts - 175% in 80 days
* Capital One January 2008 65 puts - 160% in 59 days
* Accredited Home September 2007 7.50 puts - 141% in 4 days
* Hovnanian November 2007 17.50 puts - 136% in 13 days
* Radian Group August 2007 60 puts - 122% in 19 days
* Standard Pacific September 2007 15 puts - 111% in 2 days
* Autonation January 2008 20 puts - 105% in 49 days
* New Century January 2008 25 puts - 89% in 1 day
...we've decided to launch Options Trading Pit, looking to profit from the market's demise as well as its upside.
But know this... We're not your typical options trading letter. We use an aggressive trading approach... taking gains in as little as days to months using options and LEAPS to fully maximize gains.
Just ask yourself... Will you have a problem profiting as others suffer? And will you have a problem raking in profits from oversold gems?
Posted by
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at
5:56:00 PM
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Beware of Bear Market Rallies
Last week the market rallied and we began getting questions from Forbes Newsletter subscribers about a market bottom. We checked with our top macroeconomic advisers and they reported that while some of the market technicals are improving, the overall picture is still ominous. Falling oil and gold prices are positive, but the big picture is still negative. Once invincible Fannie Mae and Freddie Mac are heading for a government bailout. The world's most powerful private financial institutions, from Switzerland's UBS to Citigroup and Merrill Lynch, are still reeling from the huge write-downs for billions in bad loans. Bear Stearns is no more. And Lehman is conducting a desperate fire-sale.
With the housing market still in critical condition and the Federal Reserve in panic mode, it's time to make sure your portfolio is well protected for what could be a prolonged Bear Market and an ugly recession. Some of our advisers are also beginning to position their portfolios for the eventual economic recovery and stock market rebound. How can you position your investments to profit during a recession and beyond? I can think of no one better than Jim Stack of InvesTech Research, to answer that question.
In his newsletter, InvesTech Research, Stack reveals which recession and recovery warning flags to watch closely in the coming weeks and months.
Not only that, but InvesTech Research will show you how to...
"But do I really need to bloster my portfolio for a prolonged recession now?"
Resoundingly: Yes! Despite positive declarations by Federal Reserve Chairman Ben Bernanke that we'll avoid a recession, Jim Stack has been watching the real news:
Reuters � 2/25/08
Crude Oil Prices Hit New Record
USA Today � 2/28/08
Dollar Falls to Record Low Against Euro as Economy Nears Recession
Bloomberg � 3/8/08
Home Foreclosures Hit Record High
Washington Post � 3/6/08
Ok, so those headlines don't necessarily spell out "recession," but Stack has been keeping his eye on more than just the headlines. Check out these recession indicators from the latest issue of InvesTech:
- Job cuts recently reached the highest level in 5 years.
- The 0.6% increase in the Unemployment Rate at the end of 2007 had never occurred in the past 50 years without the economy going into (or already being in) a recession.
- Even after 9 discount rate cuts, consumer sentiment has plummeted to a 27 year low.
Plus, let's not forget the housing market is long past any initial "spiraling." If you've been watching the housing sector, you know the unraveling has been well underway for nearly two years with no concrete end in sight. No one is buying; no one is building; and foreclosure rates are higher than they were in the Great Depression. It's time to start asking …
Will your portfolio successfully weather this Bear Market and be ready to take advantage when the Recovery and Rebound ensues?
As Stack has been telling his subscribers, the time to prepare for the rebound is now. He isn't saying jump in, but he is making some safe and selective Recession Proof BUYs in severely undervalued sectors. By signing up for InvesTech, you can find out how to make the market work for you � even in a recession!
A strategy proven over three decades, Stack's safety-first InvesTech Portfolio Strategy has been hailed by Forbes as "more or less impervious to declines." Plus, in 1996, his newsletter was identified by Hulbert Financial Digest as one of only six newsletters that had beaten the market on a risk-adjusted basis since inception in 1976. That includes the stock market crash of 1987.
As the market continues its nosedive, InvesTech Research can show you how to strap in for a bumpy ride. Just look how his portfolio performed over the long term, despite the already topsy-turvy market:
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If you don't know how to fortify your portfolio against this upcoming downturn on your own, you need to keep reading…
Federal Reserve Chairman Ben Bernanke recently released $114 billion of freshly printed paper money into the market. In January, he called an emergency meeting during which he cut interest rates by three-quarters of a percentage point. Just eight days later, the Federal Open Market Committee cut rates again, this time by a half a point. Politicians will have you think that things are looking up:Fed's Forecast: Sluggish Economy, But No Recession
USA Today � 1/16/08No Recession Expected This Year: Congressional Budget Office
Reuters � 1/23/08Bush Tells Aides: Tax Breaks Can Avoid Recession
But don't get your hopes up, because everything still points to the dreaded "r" word. Despite his valiant attempts at economic easing, Bernanke himself recently confessed that the outlook for the economy is visibly worse than it was even a few short months ago. So much for media hype…
Associated Press � 1/18/08
While government and Fed officials have been touting a mixture of optimism and denial, subscribers to Stack's newsletter, InvesTech Research, have been hearing investment straight talk all year:
Want to Keep Making Money on Your Investments � Even During a Recession?"Such an inversion in our Bond-to-Bill Yield Spread model has led to a recession in 6 of the past 7 instances over the past 40 years. That's an 86% probability of recession ahead � not good odds!"
InvesTech Market Analyst � Feb 9, 2007"At no time over the past 40 years has Private Residential Construction fallen by this amount without triggering, or accompanying, a recession."
InvesTech Market Analyst � Mar 9, 2007"…Hard core evidence [now] suggests we might already be in a Bear Market and headed for recession."
InvesTech Market Analyst � Nov 16, 2007
How can you survive � even thrive � during the current Bear Market? How should you position your portfolio during the recessionary unraveling of the housing bubble? How can you protect your gains and take advantage of the new � yes NEW � profit making opportunities?
In the current issue of InvesTech Research � which you get by signing up today � Stack outlines his Bear Market-tested defensive playbook and identifies key investments that'll prepare your portfolio to survive the current Bear Market.
Stack has a proven record of choosing successful stocks and funds despite market fluctuations and even recessions. He's quite famous for spotting train wrecks before they can impact his portfolio. Jim Stack's unique "safety-first" analysis permits subscribers to profit despite major economic downturns.
When Others Lose, Stack's Subscribers Win
In 1987, Jim Stack was one of only a few people who advised readers to move to cash immediately before the crash on Black Monday. Remember the horrible Bear Market of 2000-2002? Stack warned his readers to avoid tech stocks long before the tech bubble burst. As the DJIA tumbled in 2000-2002 and the NASDAQ lost over 78%, InvesTech's model portfolios increased in value!
Over the past 12 months, he reduced the net market exposure in his Model Portfolio from 55% to 45% leading to returns that far surpassed the S&P:
| Stack's Model Portfolio | S&P 500 |
| +2.65% | -11.18% |
Countless investment picks recommended in the pages of InvesTech Research produce amazing returns**:
Encana � up 361% since InvesTech recommended it in 2002
Equitable Resources, Inc. � up 215% since InvesTech recommended it in 2004
Alfac, Inc. � up 76% since InvesTech recommended it in 2003
Want to find out how Stack does it?
He's one of only a handful of people with the unique ability to analyze the monetary policy of the Federal Reserve as well as the technical condition of the stock market. You might be familiar with a good market technician, a worthy Fed watcher, or an excellent fundamental analyst, but only Jim Stack of InvesTech pulls it all together to help you bypass major Bear Markets and successfully ride bull markets.
Protect and grow your wealth now with Stack's time-tested tactics. Stack can get you through the nearing recession painlessly. Subscribe now and you'll get:
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at
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Two New Renewable Energy IPOs
A couple of years ago, it seemed like there was a conga line of alternative energy IPOs in the pipeline.
But a lot has changed in just two years!
Today, with the market struggling from an out-of-control housing crisis, failing banks, and eight years of failed economic policies fueled by fiscal irresponsibility - few want to risk going public.
And the ones that have gone public this year aren't making shareholders do cartwheels. (Though in all fairness, it's not unexpected to see a stock dip in share price after it goes public.)
Real Goods Solar (NASDAQ:RSOL), the solar subsidiary of Gaiam, Inc. (NASDAQ:GAIA), went public on May 8. It was priced at $10 a share. Today, the stock trades under $7.00 a share.
GT Solar (NASADAQ:SOLR) went public on July, 25. It was priced at $16.50 a share. Today the stock trades around $13.00 a share.
Still, the appetite for quality alternative energy stocks is quite healthy. Because no matter how bad the market gets - our increasing demand for energy and our dwindling supplies of fossil fuel resources is pretty much guaranteeing that the renewable energy industry has a long and profitable road ahead.
And that's why, despite adverse market conditions, there will continue to be a fairly strong showing in alternative energy IPOs.
Developing Wind
Back in May, the U.S. Department of Energy announced that wind power is capable of becoming a major contributor to the United States' electricity supply - offering up 20 percent of our overall energy mix.
And of course you're familiar with T. Boone Pickens' Pickens Plan. This is the scenario that would allow 20 percent of our utility-scale generation from natural gas to be replaced by wind. The natural gas would then be transitioned to be used as a transportation fuel for fleets throughout the U.S.
Not surprisingly, T. Boone's now building one of the largest wind farms in the world. When completed, it'll produce up to 4 Gigawatts, or enough to power about 1 million homes.
Point is, wind is absolutely huge. In fact, when it comes to sustainable, renewable energy generation - wind really is king. And very soon, we're going to see a new wind IPO that's hoping to benefit from wind's reign. The company, which is a wind developer, is called First Wind Holdings, Inc.
First Wind is currently developing or operating wind farms in Hawaii, Oregon, Utah, New York, Vermont, Maine, and New Brunswick. The company now has about 100 megawatts in production.
As far as investing in wind, we're actually just as bullish on the wind developers as we are on the turbine manufacturers. Sure, there's plenty of money to be made in turbines. But it's a tough sector to play domestically, as GE pretty much runs the show. And that's not a pure play.
If you're looking for an established pure play turbine manufacturer, you'll have to look overseas. Fortunately, those stocks are not as difficult to invest in as you might expect. In fact, our international editor, Sam Hopkins has a service dedicated solely to international renewable energy stocks. You can read more about that here.
But if you're looking for a wind developer to play, your choices are limited. In fact, the only one we like right now is Western Wind Energy Corporation (TSX-V:WND). The company is generating power right now for the California energy market. This is the energy market that IS tied to the price of oil.
So needless to say, when oil prices skyrocketed a couple of months ago, this stock was flying high. And when oil prices head back up after this brief respite (and you better believe they will), this is a stock that will benefit nicely.
The company also just had a nice second quarter - announcing record revenues of $2.1 million and net earnings of $2.9 million. And losses were down significantly, from $2.1 million from the previous quarter, to just $24,433.
Plugged-In IPO
Another company going public this year will be A123 Systems.
As a high-performance battery manufacturer, A123 is trying to get a piece of the lucrative Plug-In Hybrid Electric Vehicle (PHEV) market. And as far as we're concerned, this will truly be one of the hottest transportation opportunities in the next five to ten years.
You see, today's PHEVs are very efficient. Most are quite sturdy and attractive, and of course deliver real fuel efficiency. In fact, there are few PHEVs today that deliver anything less than 30 miles on just one charge.
Since the average U.S. driver drives 29 miles per day (according to the Bureau of Transportation Statistics), a 30-mile, all-electric range is perfect. It means most folks could get to and from work everyday, without using a single drop of gas.
And now the race is on to develop the strongest, most efficient high-performance battery for this next generation of super efficient PHEVs.
A123 definitely has a shot at being a leader here.
Mostly because this company has aligned itself with some pretty major players, including GE, Black & Decker, North Bridge Venture Partners, Qualcomm, Ford, and GM.
In fact, last year, the company announced that it was co-developing lithium-ion battery cells with GM for the auto-maker's new PHEV, the Chevy Volt.
Of course, there are other companies in the running here. But there are plenty of opportunities as our transportation infrastructure continues to transition to one that is more sustainable, and of course, less reliant on foreign oil.
Either way, we win.
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Double Up with the "Dividend Money Machine"
But what if I told you there was a better way to build wealth, one that is insulated from these growing market dangers.
It's an investment strategy developed by my colleague, Steve Christ. He calls it his "Dividend Money Machine."
In fact, in this free report Steve shares the income-investing secrets behind it all. And the best part is it works... month after month... year after year, no matter what is going in the broader markets.
It's a low risk strategy that will enable you to safely double your money within 7 years or less, without exposing your savings to the types of dangers that can drain your portfolio in an instant.
Now that is something worth reading about -- especially in today's volatile markets.
For the full details on this lucrative investment strategy, I encourage you to take a read of the following brief.
Let's face it. Finding a profitable investment today is increasingly harder and harder. Even Warren Buffett's infamous Berkshire Hathaway's stock took a 15% plunge over the past 6 months.
The reasons are simple...
- Inflation is skyrocketing.
- Oil is at all-time highs.
- The Housing market is in a never-ending tailspin.
- The Banking system is being torn apart.
- The Dollar is struggling, and
- Wall Street is taking it on the chin.
I could go on, but you get the idea... a giant wall of worry is building, and it feels like it could come down on us at a moment's notice.
The whole situation is overwhelming really, and the worst part is that there's no end in sight. So for most investors, it's just easier to ignore it... hoping that somehow things will all work out.
And yet, the worry continues to linger like a 500-pound gorilla. The risks aren't imaginary-they are real--and every investor knows that their financial future is hanging by a thread.
But instead of charting their own course, the majority of investors will just blindly jump in line behind the rest of the herd, checking the boxes on their 401K form as they thumb through a prospectus that they will never read.
But what if there was a better way to create wealth?
Would you be savvy enough to invest in a "wealth without worry" system... one that could safely and easily Double Your Investment?
Well, if you did, you'd be joining the likes of Warren Buffett, Wilbur Ross, and Bill Gross.
You may have heard of them. They're some of the greatest investors the world has ever known.
Along with them, you'd be riding along with countless others "in the know" who have been utilizing this often-overlooked investment strategy for years now.
Now, listen.
I know that you could spend hours surfing the internet trying to find out what I'm talking about. But why would you bother?
After all, a ticket to this money machine costs less than a tank of gas. That's under a buck a week for ongoing investment research and a portfolio that could boost your returns all year long--even in this down market.
And would you really know how to get the most out of your "Dividend Money Machine" even if you had one?
Because I can tell you, without reservation, that The Wealth Advisory Dividend Money Machine is the best way to supplement your income and build true wealth... kind of like the goose that laid the golden eggs. And that is no exaggeration.
Because the one thing this portfolio does is generate income. Month after month... year after year.
Let me explain exactly how it all works.
Income Investing: The Secret to the Money Machine
You see, the truth of the matter is that you don't need to be a stock guru to make significant amounts of money in today's market. In fact, you need to be just the opposite--you need to be a lazy investor.
That, friends, is no typo.
It is true... you really can accomplish more in the markets by doing less.
Of course, seasoned income investors themselves have known this for years.
This is why the ultra rich don't spend all of their time watching the financial news and trading stocks. They're too smart for that.
That's because they know that investing in steady-income producing strategies is just as rewarding.
And as our current members have happily learned - it works... month after month... year after year.
And below, I'm going to show you how to make this income investment strategy the most profitable weapon in your portfolio.
But first, I'm going to show you exactly why this strategy works... it's easier than you think.
The 7 Golden Rules of Income Investing
You see, every successful income investor lives by a certain set of rules. And if you follow them, you too can build a million dollar portfolio for less than half of what it costs to go the store these days.
Here are the rules:
1. Ignore the News. Warren Buffett doesn't bother to watch CNBC, and why should you? The financial news, after all, isn't any different than your own 6 o'clock news. Drama may draw viewers, but it's nothing more than a distraction to long-term holders. Smart income investors set their portfolios and forget them, ignoring the shrieks of the financial press.
2. Be content to take a single. Sure, home runs are exciting, but a string of singles is just as effective, and much more profitable. Yes, building true wealth takes time, but it's completely achievable. The right Income Investing plan is the solution.
3. Reinvest your Dividends. When an investor receives income, he or she has two choices. The first is to take the cash and spend it... the second is to immediately take those funds and purchase more stock. The savvy investor chooses the latter. Income reinvestment programs are an automatic way to build wealth, and they're the perfect example of why the income investor is often the smartest one in the bunch.
4. Remember the Rule of 72. Compounding is one of the most powerful forces known to man. That's where the Rule of 72 comes in. The rule says that to find the number of years it takes to you double your money at a given rate, you just divide the interest rate into 72. For example, to figure out how long it'll take you to turn $12,857 into $25,714 at 9%, you simply divide 72 by 9, and get 8 years. Now, what if you actually saved $12,857 a year at 9% interest---for a period of 24 years. Then how much would you have? The answer is roughly $1,076,154. Not bad, eh? Income investors know it's the turtle that wins this race--not the hare.
5. Avoid taxation. Inflation is bad enough, but taxation is even worse. As a result, smart, income investors get to know all the legal ways to avoid the Tax Man... and they execute these strategies, without fail, year in and year out. That leaves more money for the income investor to reinvest, fattening up their portfolios all along the way
6. Protect your Principal. Successful income investors realize that chasing yield and yield alone is much too risky. So, instead, they search for income-producing investments with a long, solid history of earnings and plenty of future upside.
7. Income Investors Don't Procrastinate. Time, after all, is literally money. Smart, income investor's don't hesitate to act on opportunity.
And for those of you who may be dissuaded by the rocky state of today's stock markets--Don't be!
Income investing is the winning ticket in every market--even this one. Here's what a few subscribers have had to say...
- "Your recommendation has actually saved my portfolio! Thanks!" - Roger from San Diego
- "Here's how I'm doing with your recommendations. I purchased 5,000 shares at $5.80 per share. I'm doing quite well and kicking myself for not buying 10,000. Thanks!" - Don from Kansas City
- "I am up 32% so far on this stock. Very pleasing given the market ups and downs! Keep 'em coming. Cheers." - Patrick from Connecticut
And that brings us to why Income Investing will be the two most important words in every investors' lexicon in the years to come.
The Death of The Dow Jones...
and the Rise of Income Investing
By Warren Buffett's own calculations, matching the gains of the U.S stock market over the last century is going to be almost impossible.
In his most recent annual report, Buffett pointed out that in order to equal the U.S. market over the 20th century, the Dow will need to close at roughly the 2,000,000 mark on December 31, 2099.
That means that the Dow will need to gain about 1,987,000 points to match the incredible gains in the years known as the American Century.
It was in those years that the Dow advanced from 66 to 11,497 at the close of 1999. That's a compounded annual growth rate of 5.3%, an impressive achievement to say the least...
But let's be realistic...
The Dow closing at the 2 million mark by the end of the century is nothing short of a pipe dream.
After all, nearly a decade into the new century, we've added barely 1,500 points. And at that pace, it would take until the year 2174 to reach 2,000,000. The "Oracle of Omaha" himself even said we'd have to be extremely lucky to crack this mark over the next 92 years...
So, this raises the million-dollar question: How can we hope to match the performance of the last century when it's clear that U.S. equities, as a whole, aren't likely up to the challenge?
The answer is two-fold:
- You'd have to be an incredibly brilliant and proficient stock picker, or...
- You'd need to juice your returns with steady monthly income payments.
You see, investing for income allows you to win two ways--steady cash payouts and significant price appreciation.
And by taking advantage of both the growth and income sides of the investing map, you can achieve unbelievable returns--even if you're a novice investor.
And It all starts with one critical question:
Would you really let $49 stand between you and an investment strategy
that is guaranteed to double your money?
Now think about that for a minute. Because that is a micro-fraction of the fees and commisions that you dole out every year to your broker and that 401K guy. They spend half their day thinking of new ways to bleed you. And then they beat their chests when they earn you a whole 10% return.
But just don't try to get one of those dinosaurs on the phone when you really need them. They are too busy hacking up the back nine.
But before you answer that question, let me introduce myself. My name is Steve Christ. I developed the "money machine" and the portfolio behind it.
And while I realize that this plan may seem to be too good to be true, I can assure you that its not.
You see, by using the low-risk/high-income strategy embodied by The Wealth Advisory's "income investing" portfolio, you can avoid market risks and collect income on a steady basis... month after month... year after year.
And by creating this "set it and forget it" portfolio, you can earn big returns in any market. I guarantee it.
Because let's face it, making serious money in the stock market is a ton of hard work. I'm not going to candy coat it for you.
It takes patience, savvy, and a certain level of market smarts if you want to play with the big boys. And the cold hard truth is that if you don't have them, the big boys will drain your portfolio dry.
Unfortunately, those are three areas that nearly every retail investor needs the most work on.
So don't fool yourself for one second into believing that your "due diligence" can be done by watching a show or two on CNBC. It just doesn't work that way. The market eats those kinds of "investors" for breakfast.
That's why I hope that you'll join The Wealth Advisory today.
That's because The Wealth Advisory is much more than just winning stock picks. Its real focus is to teach investors how to think for themselves--and build wealth along the way.
The Wealth Advisory Investment Philosophy
As for our philosophy, it's as simple as the man who taught it to me over 25 years ago. And it has served me well ever since. We will look to buy stocks that have been heavily discounted and sell them at a time when others will pay any price.
This was the philosophy taught to me by my uncle Charlie, a man who hadn't held a job, in the traditional sense, since the Great Depression. My uncle was very much out of the Benjamin Graham school when it came to investing.
Of course, if you were behind him in line at the grocery store that's the last thing you would've thought about him. But it was true--he was a self-made man and he owed it all to his winning investment philosophy.
"It's all about taking and managing risks," he used to say, "it's just that simple."
"Figure that out, and you'll never have to work again," he'd declare with a chuckle and a wink.
And to be honest, it is not much more complicated than that--as long as you know how to keep your risks to a minimum.
You see, if there is one thing that I have consistently discovered in talking to retail investors it's this: they simply take on too much risk. And that in the end is what ruins their portfolios.
That to me is the big lesson in it all. The markets really are more than happy to reward you, you just have to have enough patience to protect your principal and be willing to learn along the way.
That much I'm sure of.
If you are willing to part with a buck a week, you can set up a massive TAX-FREE income stream. And all you have to do is sit back and relax, while all of that steady income flows into your account.
That is why when you sign-up for a subscription to The Wealth Advisory, you will receive access to my money machine report-- How to Sit Back and Become a Millionaire.
In it you will find everything you need to know about how to build a money machine of your own.
All for only $49 a year!
If, for any reason, you're not completely satisfied with The Wealth Advisory, the stocks in it, or the level of research presented, simply let me know within your first 30 days and I'll personally refund every penny. No questions asked.
Plus, you can keep my special report, How to Sit Back and Become a Millionaire. It's my gift to you.
You will also even receive my latest report, The Nuclear Monopoly. It details the one investment in nuclear power that cannot fail. In fact, we believe this company is a double in the making and it's all yours for giving us a try.
But that is just the tip of the iceberg...
Because when it comes to picking winning stocks The Wealth Advisory investment team can't be beat.In fact, since the first of the year, my team has posted big gains... at a time when other newsletter publishers are struggling to post returns of any kind.
In fact, here's a peek at how we've done so far on our closed positions since we opened the service:
• Adobe Systems Inc. (ADBE:NASDAQ) closed with a 32.28% gain in 11 weeks.
• Converted Organics Inc. (COIN:NASDAQ) closed with a 42.11% gain in two weeks.
• FXP UltraShort FTSE/Xinhua China 25 Proshare (FXP:AMEX) closed with a 27.23% gain in four weeks.
• Morgan Stanley China--SHORT POSITION (CAF:NYSE) a 32.51% gain in four weeks.
• PowerShares DB Commodity Idx Trking Fund (DBC:AMEX) a 14.26% gain in eight weeks.
• PowerShares DB Energy (DBE:AMEX) a 15% gain in nine weeks.
• VMware Inc. (VMW:NASDAQ) a 44.44% gain in eight weeks.
• Chesapeake Energy (CHK:NYSE) a 15.4% gain in 6 weeks.
• UltraShort QQQ ProShares (QID:NASDAQ)- an 11% gain 4 weeks.
• SonoSite Inc. (SONO:NASDAQ)-a 9% gain in 12 weeks.
• PowerShares DB Oil (DBO:AMEX)-a 49% gain in 5 months.
That's a cumulative gain of 290% vs losses of only 55% or a net gain of 235%!
Posted by
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at
5:46:00 PM
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Grab Tomorrow’s Newspaper Today
There was a TV show in the late '90s about an ordinary guy who ― for whatever reason ― always got tomorrow's newspaper today...
Which gave him only 24 hours to run around righting all the wrongs that were destined to happen in his city during the course of the day he was living in. Things like thwarting crimes and exposing fraud and preventing accidents and all kinds of other stuff.
Well, I used to watch that show and think:
If I got tomorrow's paper, I'd be plunking money down on stocks and commodities that were going to zoom up in the next 24 hours. THEN I'd help old ladies and rescue cats.
If this is the way you think, too, then listen up ― because what I'm about to offer you is practically the same scenario...
Getting an advanced look at tomorrow's hottest and most lucrative profit opportunities before almost anyone else can even conceive of them.
Your Own Early Report― to Wealth
Think about this...
If you had a newspaper that warned you four years ago about the dollar's collapse, wouldn't you have put your cash into stabler foreign currencies ― and saved yourself a 28% or bigger loss?
If you'd read in it three years ago how gold would explode in value 132%, wouldn't you have used that information to turn $100 grand into $232,000 in your pocket?
If its pages had cautioned you in 2005 that a real estate crash would soon cripple home builders, wouldn't you have sold your Pulte shares before you lost 81% of your money?
And if it had reported in early 2007 that crude prices would zoom up 180% in 18 months, wouldn't you have traded oil futures over and over again during that time for huge gains on your money?
As you now know, all of these things happened. And they almost completely blindsided the mainstream money analysts and press ― and most mainstream investors.
However, every single one of these pivotal occurrences ― plus so many others that I couldn't even list them ― were predicted time and again with uncanny accuracy by the contrarian investing experts in attendance at one incredible annual event...
The Agora Financial Investment Symposium in Vancouver, British Columbia.
Having attended this conference for four years running now, I've heard firsthand what the brightest swim-against-the-stream soothsayers in money have foretold. I have witnessed time and again how their predictions have come to pass...
And how those people who listened could've made an absolute fortune.
So how does this matter to you right now?
In just a minute, I'm going to offer you the chance to profit hugely from all of these experts' latest, up-to-the-minute investment wisdom and predictions ― FREE.
The Future Isn't Pretty. But It Could Be Pretty Profitable . . .
I'm Bruce Robertson, and you've almost certainly never heard of me.
That's because unlike world-renowned contrarian thinkers Bill Bonner and Addison Wiggin ― or Agora Financial's Chris Mayer, Byron King, Eric Fry, Dan Amoss and others ― I'm NOT an expert in any aspect of money, markets or investing.
However, as AF's Symposium director since 2005, I've had a rare ― insider's view of years of their prognostications...
And I'm here to tell you: The degree to which these and other Symposium speakers are dead on the money about what's really happening ― and what's going to happen ― in the realms of global currencies, gold and silver, inflation, resources and commodities, oil and gas, alternative energy, U.S. fiscal policy and the national debt, politics, the environment, the Asian economic juggernaut and more borders on the prophetic.
Here are just a few examples of what I call "The Vancouver Prophecies":
THE CREDIT CRASH PREDICTED PRACTICALLY TO THE DAY!
Speaking at last year's Symposium about the overheated American credit market, Agora founder and contrarian money legend Bill Bonner said: "It can't continue. There's nothing behind it. It's all based upon... credit and borrowed money that has to be repaid. And when it's time to repay it ― when people stop lending, and stop accepting this funny money that banks are cranking out, you get a bust."
And what happened the very week of the 2007 Symposium ― perhaps even as Bonner was speaking? The Dow lost more than 700 points as the U.S. credit crunch came to a head, plunging America into a banking and lending tailspin the depths of which we still haven't plumbed...
2008 DOLLAR DOLDRUMS AND INFLATION'S RISE FORESEEN
Bonner further prophesized: "The central 'strong dollar' policy that the U.S. has had for a long, long time is gone... My guess is that Bernanke ― who's now been talking about how they're not worried about inflation so much anymore ― is preparing to lower interest rates... because he's afraid of the problems in the subprime and credit markets. None of these things are going to help the dollar. The dollar is going to sink."
Sure enough, the Fed slashed interest rates at least six more times in the nine months following the 2007 Symposium. And as Bonner predicted, not only has this failed to prop up the credit and subprime lending markets, but the dollar has, indeed, tanked ― and inflation is on the rise, big-time...
A DEADLY INFRASTRUSTURE DISASTER FORESHADOWEDAt the 2007 Symposium, Agora Financial's perennial infrastructure investment "guru" Chris Mayer clued us in to the incredible nuts-and-bolts, brick-and-mortar needs and opportunities in China, India and the Middle East (his Capital & Crisis plays on these are up as much as 49%!)...
Mayer also warned about the multibillion-dollar need for maintenance, repairs and upgrades in all domestic infrastructure sectors here in America: roads, bridges, water pipes, railways, steam fittings, oil pipelines and more. "It's not just in China or India," Chris said. "In New York, that steam pipe explosion last week? It was a pipe that had been laid in 1924 that gave way... It's happening all across America's cities."
However, in crisis lies opportunity. Chris's five best plays on just one sliver of the infrastructure crisis (water supplies) have all gained an average of 81% ― including one sold position posting 100% profits. But in crisis also lies tragedy. Barely more than a week after Chris gave his Symposium presentation, America experienced a colossal and historic infrastructure failure: the I-35W bridge collapse in Minneapolis that claimed 13 American lives on Aug. 1, 2007.
Remember, these are just a few brief examples from 2007's Agora Financial Investment Symposium. I could go on and on about the uncannily accurate predictions not only from last year's event, but from all four Symposia that I've been privileged enough to attend...
But I've proved my point and more about the Symposium's "prophecies" and profit potential.
Now I want to show you how these contrarian investing geniuses could help you bank solid, even incredible, profits in an age of risk and uncertainty ― starting today...
How the 2008 "Vancouver Prophecies" Could
Make ― and Save ― You Millions . . .
As with every Agora Financial Investment Symposium I've been to, I could never begin to sum up for you in these few pages the huge volume of invaluable contrarian investing pointers, analysis and specific, actionable recommendations from the sold-out 2008 Vancouver event that ended just days ago...
However, I can offer them all to you today in another form.
As we've done for several years now, we recorded ― verbatim ― all the informative, entertaining and potentially lucrative general sessions from every one of this year's marquee speakers at the 2008 Symposium...
That's right: Now you can experience the complete and unadulterated "prophesizing" of not only your favorite Agorans like Bonner, Wiggin, Mayer, King, Amoss, Fry and others ― but also special invitees like:
- Coin and collectible specialist Nick Bruyer
- Inflation and currency expert Paul van Eeden
- The resource investing pioneer Bill Bonner trusts most, Rick Rule
- Visionary author and American socio-metro critic James Howard Kunstler
- America's favorite anarchist ― author and contrarian profit legend Doug Casey
- The "Indiana Jones of investing," the 4-time New York Times best-selling author and international adventure capitalist Jim Rogers...
And in just a minute, I'm going to show you how you can get all of this FREE...
But first, I've just got to share with you just a handful of the lucrative highlights you'll get with your CD or MP3 copies of the full recordings of this year's Symposium...
4 WAYS TO GAIN FROM THE GLOBAL INFRASTRUCTURE CRISIS
In a detailed presentation titled A Golden Age of Opportunity, Chris Mayer (Capital & Crisis and Mayer's Special Situations) opens our eyes to the incredibly lucrative potential in worldwide infrastructure investment ― and reveals his four best profit recommendations aimed at making you rich from this global crisis...
3 "UN-AMERICAN" WAYS TO PROFIT FROM THE POPULATION BOOM
In Investing in a Post-American World, a fascinating analysis of the relationship between growing global population and commodities investment and natural resource profiteering, Dan Denning (Port Phillip Publishing, former editor of Strategic Investment) reveals surefire offshore profit opportunities in metals, energy and foodstuffs...
4 REASONS WHY THE RESOURCE BULL HAS LEGS ― AND HOW TO PLAY IT
In A Speculator's Guide to Natural Resources Markets, Rick Rule (founder, Global Resource Investments Ltd.) outlines four reasons why the mainstream is wrong to speculate that the resources bull market is over. To prove it, he names specific natural resource investment opportunities that are likely to explode in profitability in the near future...
4 PROBLEMS THAT PLAGUE THE DOLLAR ― AND HOW TO BEAT THEM
In a frightening exposé titled Have We Lost Control? Is the U.S. Dollar on Pause or Still in Decline?, Chuck Butler (president, EverBank World Markets) uses historical data and hard numbers to show us how four fundamental problems America faces will continue to weaken the U.S. dollar. He also reveals exactly what you can do to freeze the erosion of assets and any investments you might hold in U.S. dollars...
WHY YOU NEED TO MAKE 8.79% "PROFIT" TO JUST BREAK EVEN
In perhaps the Symposium's most sobering presentation, Measuring Inflation ― How It Affects Your Wealth and Decisions, internationally renowned expert in gold and currency markets Paul van Eeden (Cranberry Capital) shows us how the government's book-cooking has trained us to calculate both inflation and the value of our money in all the wrong ways ― and how today's true rate of inflation (8.79%!) is higher than it was in the '70s...
HOW TO GRAB YOUR SHARE OF $22 TRILLION IN NECESSARY SPENDING
In Water: Why Some Call It the Next Oil, Tom Rooney (RCI Consulting) echoes Agora Financial's own Chris Mayer as he warns of a coming world water shortage and H2O infrastructure crisis ― the Mother of All Infrastructure Crises, with a whopping $22 trillion price tag. Thankfully, he's got specific recommendations on how to play the crisis for max profits...
HOW TO PLAY THE WORLD'S BEST COIN MARKETS: RUSSIA AND CHINA
Collectible currency expert Nick Bruyer (president, First Federal Coin Corp.) presented New Gold Bullion Opportunity of Olympic Proportions: Profiting From China, Russia and Treasures From the Deep, a detailed exposé of how both ancient and modern precious metal coins can be not only engines of huge profit ― especially in emerging Chinese and Russian markets ― but safe hedges against the inflation of fiat currency...
Again, these are just a few of the high spots from the four jampacked days of the 2008 Agora Financial Investment Symposium in beautiful Vancouver, British Columbia. There's so much more I simply don't have time or space here to get to. Things like:
- Addison Wiggin's disturbing revelation of "Peak Western Influence" ― and how it spells the end of the American Empire...
- Bill Bonner's lament that rapid U.S. nationalization has brought about the "End of the World As We Know It" ― and why, ultimately, that's a good thing...
- James Howard Kunstler's rabid (but perhaps right) condemnation of what he calls the "Cartoon Country" ― and how we're all better off in the city...
- Doug Casey's riotous "diss"-ertation on the difference between evil and stupidity ― and why our president is a moron steering us toward the Greater Depression...
But here's the good news: ALL of these tips, highlights and tons more ― plus a FREE Special Report covering all the specific, actionable profit recommendations from more than 70 specialized "breakout" sessions ― are yours for the getting...
All you need to do is order your own CD or MP3 (or the combo pack of both) recordings from the 2008 Agora Financial Investment Symposium. And as I said earlier, there's a way to get these FREE. Details are coming.
But right now, let me tell you how...
The Original "Adventure Capitalist"
Barnstorms the Symposium
This year marks the first appearance at the Agora Financial Investment Symposium of one of the icons of modern contrarian investing: four-time New York Times best-selling financial author Jim Rogers ― called by many "the Indiana Jones of investing"...
His presentation, Political, Social and Economic Observations From a 3-Year Guinness World Record, 245,000-Kilometer Drive Through 116 Countries, ranged far and wide, across many topics ― including:
The Rise of China ― According to Rogers, China will be the pre-eminent nation on Earth in the 21st century, though few seem to understand it. Listen to his fiery speech and you'll discover his best recommendations for Americans (and their children) to capitalize on China's inevitable ascendancy. You'll also learn the one type of Chinese stock he's scooping up right now...
The Fall of the Dollar ― "Out of control," is how Rogers characterizes the U.S. monetary system, strongly maintaining that the Fed's official policy is to debase the dollar, a currency he calls "horribly flawed." In your Symposium recordings, you'll hear him reveal the relatively stable currencies in which he holds his assets...
The Supremacy of Commodities ― Listen and learn why Rogers usually shuns stocks and bonds in favor of commodities. Also, discover why he says, "Diversification is a concept stockbrokers came up with to protect themselves. Nobody gets rich by diversifying..."
Also in your Symposium recordings:
- Rogers' 3 hottest commodity categories right now
- The 2 kinds of Taiwanese companies he's buying today
- The type of Japanese stock he thinks is a foolproof bet
- The 4 countries he thinks are best for small-cap speculation
- The 3 Latin nations that have the best resource profit outlooks.
Again, you can get Rogers' entire groundbreaking presentation ― what may be the only chance you'll ever get to hear him speak ― as part of your CD or MP3 (or dual-media pack of both) copies of the 2008 Agora Financial Investment Symposium.
Keep reading for details on how to get it now, FREE...

Stop Drinking the Kool-Aid ― and Start Making Money
If you're reading this, you probably already know what a contrarian is. In fact, you probably are one.
But in case you're new to the Agora Financial family ― or a little sketchy on the definition of the word "contrarian" ― it means "in contrast to the mainstream."
A contrarian doesn't swallow politicians' promises hook, line and sinker.
He (or she) doesn't trust his future solely to the blue chips or big mutual funds.
He doesn't rely only on The Wall Street Journal and Forbes for investing ideas.
In short, contrarians don't "drink the Kool-Aid" the mainstream pundits, policymakers and talking heads mix up for them. Any of it. They dare to question. They research the alternatives. They seek wealth where their neighbors aren't looking...
And if there's one thing I've learned in more than four years with Agora Financial, it's that contrarians usually find wealth ― while rank-and-file investors find little more than fees, taxes and "profits" that mirror the market and barely outpace inflation.
However, one small subgroup of contrarians has an incredible profit advantage over their mainstream-defying brethren. These lucky few have the tools not just to realize wealth "someday," but to get truly rich in relatively short order...
They're the contrarian minds that attend the Agora Financial Investment Symposium.
But even if you missed the best-ever, sold-out 2008 version of the Symposium, you could still become one of these lucky few contrarian profit takers right now. No tricks, no strings, no travel, no leaving home...
All you need are the CD or MP3 (or both) recordings of the event ― and the FREE Special Report with all the specific, actionable profit recommendations from the more than 70 specialized "breakout" seminars held by marquee Symposium speakers.
It all comes with your order ― which could cost you nothing. Here's how...
How You Can Get the 2008 Symposium "Prophecies" FREE
The offer I'm making you today is a simple one:
You can purchase the entire set of general session recordings from the 2008 Agora Financial Investment Symposium from scenic and prosperous Vancouver ― including the Special Report detailing all the specific profit plays from the "breakout" sessions ― in two formats: downloadable MP3 files for just $149 or the 12-CD set for $199...
Or BOTH the CDs and MP3s for the same $199.
But how can you get them FREE, you're asking? That's easy...
I'm offering your full purchase price on the 2008 recordings as a discount when you sign up for the 2009 Agora Financial Investment Symposium.
That's right ― whether you choose the downloadable MP3 version for just $149, the 12-CD set of recordings for only $199 or the dual-media CD/MP3 combo pack for the same $199, you'll get that much off your sign-up price for next year's Symposium...
Which would make your recordings of the 2008 Symposium FREE. All you'll need to do is cash in the e-voucher we'll send along with your recordings when it's time to sign up for next year's event.
Now, as Agora Financial's Symposium director, I can assure you that the 2009 version of the Agora Financial Investment Symposium will be unprecedented in its scope, profile and demand for seats. That's because next year will mark the 10th anniversary of three contrarian investing staples:
- The Agora Financial Investment Symposium itself
- The half-million-strong Daily Reckoning e-letter
- And the book that started it all: the New York Times best-selling Bonner/Wiggin classic Financial Reckoning Day: Surviving the Soft Depression of the 21st Century...
I can't go into all the specifics just yet ― but trust me, what we've got lined up is going to blow you away. And of course, it could make you rich, too. As usual.
But then, you'll already be on your way to wealth once you get your CD or MP3 recordings of the 2008 Symposium...
A Way to Get Your Money Back That You'll Never Ask For . . .
Offering a "money-back guarantee" on the wisdom and proven investing savvy of some of the greatest and most prophetic minds in money seems a little like offering someone a $2 refund on a $2 million winning lottery ticket...
However, everything we put out here at Agora Financial is satisfaction guaranteed in one way or another. So if it helps you make up your mind, here's the guarantee I'll offer you on your CD or MP3 recordings of the 2008 event:
If you're not satisfied for ANY REASON with the information, predictions, recommendations or pure entertainment of the 2008 Agora Financial Investment Symposium recordings, I'll give you all your money back ― at ANY time!
Even years later. All you have to do is call. But you won't...
I know, because in the four years I've been with Agora Financial, I've only ever refunded two or three sets of these recordings ― and they were damaged in shipping.
So what are you waiting for? The sooner you get in on all these incredible, actionable profit plays from the greatest "prophets" in contrarian investment, the bigger your cut of the spoils as these opportunities inevitably hit the mainstream's radar...
However you feel like listening ― in your car CD player while you're on the road, on your home stereo while doing housework or on your iPod while you're exercising or mowing the lawn ― we've got the medium to suit you...
Especially with the dual-media "combo pack" (it's the same price as the CDs only!).
And remember this, too: No matter what package of recordings you choose, you'll also get that comprehensive FREE Special Report containing all the stock picks, commodities recommendations, hot trend info and other specific, actionable investment plays from the Symposium's more than 70 individual afternoon "breakout" seminars!
One more time, here's the deal I'm offering you:
Get the complete set of 2008's Symposium recordings (and the Special Report) for only $149 for downloadable MP3 files ― and just $199 for the CDs. Or both formats in a "dual-media" combo for the same $199...
And get all your money back in credit when you sign up for next year's Symposium.
It's all unconditionally money-back guaranteed, forever. So click now on the order link below and follow the simple instructions to purchase a complete set of recordings of this year's 2008 Agora Financial Investment Symposium...
Again, what are you waiting for? The very "prophecy" that could make you your next million (or perhaps keep you from losing it) is just a click away.
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Turn $1 into $50 While You Sleep
Doing nothing while collecting royalties has to be one of the best ― and easiest ― ways to get rich. For instance, David Sengstack does nothing and collects royalty paychecks of $2 million per year... just because his dad was smart enough to buy the commercial rights to a song you've sung a hundred times, "Happy Birthday to You."
Michael Jackson does nothing and collects royalties every time a Beatles song plays on the radio (he bought the rights years ago). But Paul McCartney ― now a billionaire ― does nothing and collects even more on the 3,000 song rights from other artists that he owns.
Paul Newman made plenty acting. But licensing his name piles up even more donations for his favorite charities ― over $200 million so far ― from royalties on the Newman's Own food line.
Even boxer George Foreman does better doing nothing than he did fighting in the ring, thanks to the $137 million royalty checks he gets for lending his name to a grill.
No wonder the world's richest investor calls collecting royalties the best business in the world. It's literally one of the easiest ways to do nothing and "make money while you sleep."
What might shock you is that there actually IS a way for anybody to tap into a pool of growing royalties... wealth that piles up by itself... that, ultimately, could be worth more than the entire Beatles catalog, all the commercial rights to "Happy Birthday," and the total value of the top 25 most expensive works of art in the world... combined.
And you can set it up in less than five minutes.
I call it the "Chaffee Royalty" program, after a former schoolteacher and wealthy American millionaire, Jerome B. Chaffee. Just like people who make a living collecting royalty checks, you don't need to do anything once you've tapped into the program.
You just sit back and watch the money pile up.
8 Americans Who Just Cashed in
on "Chaffee Royalties"
Even though I'm almost positive you've never heard of "Chaffee Royalties," some of America's wealthiest families have ― though by another name. In fact, it's a secret that's made more than a few Americans exceedingly rich.
- Robert Friedland made millions of dollars when his "Chaffee Royalty" holdings jumped in value from $4 to $167 in just two years
- George Hearst borrowed the $3,000 he used to buy his way into "Chaffee Royalties" in Nevada. Within months, his stake had grown to $91,000 ― money he used to buy even more royalty rights, which ultimately launched his empire
- Jim Fair, a former Illinois farmer, got so rich with his "Chaffee Royalties" he was able to hand his daughter a $1 million check as a wedding present
- William O'Brien earned enough from his "Chaffee Royalties" to make him one of the 100 richest Americans of all time
- Former California carpenter John Mackay scraped together $500 to buy his first share in a "Chaffee Royalty" program. He made enough to build a mansion surrounded by 70 acres of land and formal gardens for his son
- E.J. "Lucky" Baldwin parked his last $800 in "Chaffee Royalties" while living in Virginia City, Nev. By the time he was through, he'd piled up royalty wealth worth over $5 million
- James Flood, who came to the U.S. with next to nothing, got so rich on "Chaffee Royalties" he was able to build a beautiful sandstone home on top of San Francisco's famous Nob Hill. It's still there today
- Then there's Stanley Dempsey. A lawyer who quit law and put his money into "Chaffee Royalty" contracts now makes his living collecting on 23 different streams of royalty income. Forbes even featured Dempsey and called his fortune "virtual gold," since he barely has to do or run anything to keep the money rolling in.
But there's no reason you can't collect anytime you like.
In fact, now that these "Chaffee Royalty" programs trade directly on the stock exchange, you can get in anytime you like. And with the right timing, you can get in at a very good price. And then start seeing gains from "Chaffee Royalties" immediately.
This is the situation we're in right now.
Which is why I'm writing you today.
See, in 2002, one of the most impressive "Chaffee Royalty" opportunities of all time closed its doors to new funds, just after delivering a 50-to-1 payoff for its earliest "members."
Today, that opportunity is back.
And for reasons I'll share, the timing now is better than ever.
What's more, today, there's more than one way to lock into "Chaffee Royalties." And one of those options, according to research that took me nine months to pull together, could pay out even better than what was once the most profitable "Chaffee Royalty" opportunity of all time.
We'll get to those details.
But first, let's start at the beginning...
The "Chaffee Royalty Program"
That Changed America
Jerome B. Chaffee didn't make enough as a schoolteacher. So he took a job as a sales clerk in a dry goods store. Then he took that money and started a dry goods store of his own.
When that wasn't enough, he packed his bags and went to Colorado in 1860.
See, Colorado then ― as right now ― was mineral rich. And even though Chaffee knew next to nothing about mining, he saw the possibilities. And started snapping up the "royalty rights" on as many gold and silver claims as he could afford.
Every time one started to pay off, he bought more. Until he had a business making between $300,000�500,000 per year ― or as much as $17.3 million today.
Suddenly the ex-schoolteacher was very rich. And powerful.
Chaffee took up politics, pushing for laws that would lock in the same kinds of opportunities for everybody. He even went to Washington and became a senator ― and a friend of the president, Ulysses S. Grant.
Chaffee's own daughter even married the president's son, Ulysses S. Grant Jr.!
In 1872, Grant expanded on protecting the resource rights that Chaffee championed by signing the General Mining Act, a law that still safeguards mineral rights today... has already created countless American millionaires... and helped blow open the gateway to the American West.
"Chaffee Royalties" let you tap into rich mineral rights more easily than so many others did years ago. You don't need a lot to get started. In fact, you do practically nothing. Even as the rich resource wealth piles up.
I've done all the legwork already. It's written up in my newest research report, Big Mining Money Without the Big Risks: How to Build Resource Royalty Wealth While You Sleep.
You cannot buy this report anywhere. However, at the end of this letter, I can show you how to download your own copy very easily. Inside, you'll find details on why now is easily the best time in history to make money tapping into "Chaffee Royalties."
I then go ahead and name for you my top five favorite ways to get started, including the No. 1 "Chaffee Royalty" opportunity available today.
And getting in right now won't cost you more than about $6 per share.
Almost Nothing to Get Started. . .
Provided You Act on This Quickly
The better known these "Chaffee Royalty" opportunities become, the faster the entry price goes up. That's just the way they work. Simply because new capital lets them add even more rich royalty streams, increasing the value of the program for shareholders.
For instance, in my report, I tell you about one royalty-collecting group that let in new "members" for just $3 per share as recently as June 2005. But as royalty assets grew, so did the cost of entry ― up to $19 per share today.
That's a 530% return if you got in early. I see it going still higher, but the longer you wait, the more of these gains you'll miss out on in the future.
Then there's another one of these unique "Chaffee Royalty" opportunities I name in the report that first hit the open market at just $1.10. As of this writing, it's already asking new "members" for $32 per share. That's a solid 2,809% return so far ― turning every $5,000 into well over $140,000.
While I see still more ahead, this, too, is far from the best gain I expect you to have the opportunity to make. In fact, one of the most famous "Chaffee Royalty" plays of all time ― which I'll tell you about in detail in just a second ― soared from just a few dollars per share to more than $180 per share before it was through.
Anyone with the luck to get in early had the chance to make as much as $50 for every $1 invested ― or $250,000 for every $5,000. And then, in 2002, this particular "Chaffee Royalty" miracle closed its doors to new investors.
As you'll see, it's back again. And already piling up new royalty stream income for the new wave of shareholders. You can easily move on this right now. But before you do, let me show you a way I believe you can do even better than by revisiting any of these already time-tested "Chaffee Royalty" moves.
Again, it's all in my new report, Big Mining Money Without the Big Risks: How to Build Resource Royalty Wealth While You Sleep.
So why haven't you heard of "Chaffee Royalties" before?
Because most mainstream headlines don't look deep enough into the deals to discover them. At least, not until the early opportunities are long gone.
As an ex-commercial banker who used to handle $400 million contracts for breakfast, looking deep behind the scenes... for Special Situations like this... is my specialty.
That's what first got me looking into "Chaffee Royalties" as a unique new way for investors to get very rich. It's also what has me convinced, along with some very smart and very rich investors, that this may be one of the best undiscovered ways to "make money while you sleep" available today.
But there's something else...
Because today, with the massive global credit crisis... soaring energy costs... and the systematic destruction of your dollar-denominated savings... this is also the best market ever to start looking at these "Chaffee Royalty" programs as a way to build wealth.
Why? I lay it all out for you in my new report, Big Mining Money Without the Big Risks: How to Build Resource Royalty Wealth While You Sleep, which can act as a valuable "primer" on exactly how to tap into this new wave of royalty-backed riches.
Here's a glimpse of what you'll find...
Big Mining Gains Without the Usual Big Risks
All the value in "Chaffee Royalties" is backed by real resource wealth.
Oil. Gas. Gold and silver. Copper. Nickel. Diamonds.
But the beauty of these royalty streams isn't just the hard asset value that's behind them.
Instead, it's the fact that... as you watch the wealth pile up... you do it with none of the major risks that most mineral and hard asset investors face.
How so?
That's the unique opportunity with "Chaffee Royalties."
They're designed to deliver all the upside of the world's rich mineral wealth. But without passing on any of the major exploration, management or environmental costs of mining or drilling to the end shareholders.
Imagine, for instance, if you could own a "piece" of Apple's iPod sales... without paying a nickel toward the operating costs, research or advertising.
Imagine if you could collect Google's ad sales... or Exxon Mobil's oil revenue... without forking over for employee salaries, building and maintaining headquarters, or any of those other costs that typically nickel-and-dime shareholders out of gains.
"Chaffee Royalties" let you do that, backed by pure gains on some of the most valuable mineral and other raw resource deposits in the world.
No Better Time Than NOW to Take
Advantage of "Chaffee Royalties"
Right now, resource companies are lining up to swap some of their gross profits for these royalty programs. Why would they do that?
It's simple.
See, right now, the global credit crunch is just one of the forces destroying the U.S. dollar. And that, plus unstoppable Asian demand, has sent the value of gold... silver... copper... nickel... zinc... lead... and just about every other mineral asset you can name... soaring.
That's great for anyone who produces or sells those resources.
Trouble is, as energy prices go up, so do the operating and production costs for the miners. So if they want to expand to capitalize on the resource boom, they need money.
Usually, that money comes from the banks. But the banks don 't want to make any new loans today. And the resource companies themselves ― like Barrick Gold and Newmont Mining ― just don't have the cash flow to take up the slack.
So they turn to the royalty companies instead, trading big loans for future profits on the huge piles of resources they're drawing out of the ground.
As long as the minerals keep coming up... and the market keeps begging for more... these royalty companies and their program "members" get rich, without ever owning an inch of dirt or worrying about running the actual mining business.
It's that simple. And right now may be the best time in history to be a part of the "Chaffee Royalty" trend. Even the Financial Post recently reported:
"Today, the last thing many investors want is operating control. Mining companies are fighting staggering capital cost increases due to soaring demand for labor and equipment, as well as fuel and power. The beauty of the royalty model is that it gives investors all the exposure on the revenue side and none on the cost side."
The Financial Post went on to say, "[Chaffee Royalties] are the low-risk way to play the mining game" and the "ideal way to get lower-risk exposure" to gold, energy and other resource wealth.
No work. No major worries. No management.
Just royalty riches.
Here's a great example...
Up to 50 Times Your Money. . .
Without Getting Your Hands Dirty
The Goldstrike mine ― in northeastern Nevada ― is one of the best producing and most profitable gold mines in the world.
Millions of dollars are spent pulling out and processing as much as 35,000 tons of rock per day. Year after year. More than 1,600 employees work the site.
That's nearly the same size as the whole population of nearby Carlin, Nev.
Anyone who owned a piece of Goldstrike made a fortune.
Pierre Lassonde was one of them. But Pierre never actually owned the mine. He never actually hired a mining team, either. Or spent every day on the mining site.
Instead, he had a better plan.
See, at the time, Pierre was one of the top gold analysts in Canada, with more than 25 years of mining experience. And, though he knew early about the potential at the Goldstrike site, what he also knew was that he could get rich without having to do the work.
Because he'd worked out a way to let someone else do it for him while he collected the "Chaffee Royalties" we've just talked about. And he did. To the tune of many millions of dollars.
Not just for himself.
But for the shareholders who helped "back" Pierre on the deal...
The Laziest, Low-Risk Road to Mining Riches
You might still remember Pierre's company. It was called Franco-Nevada, and at the start, it was pretty tiny. Some mining companies have as many as 30,000 or more employees worldwide.
Pierre's company started with just two ― himself and a partner.
And his plan was not to own an actual piece of the rich Goldstrike property ― but to dedicate Franco-Nevada's assets to buying only the "Chaffee Royalty" rights to Goldstrike instead.
And when Goldstrike hit big on gold, the royalty money started pouring into Franco-Nevada. And all Pierre and his team had to do was rake it in.
In those early days, you could have picked up Franco-Nevada shares for just a few dollars... and then watched them soar to well over $180.
By the time Franco-Nevada got snapped up in 2002, it had ballooned from a tiny $2.3 million firm... to a company worth the $2.9 billion shelled out by Newmont Mining... which saw the writing on the wall and bought up Franco-Nevada's whole portfolio of royalty deals in one grab.
With the buyout, your chance to get in on the original Franco-Nevada pool of "Chaffee Royalties" ended. Pierre Lassonde took over as Newmont's new president. Until recently, he even chaired the World Gold Council.
But Pierre never forgot what a low-maintenance income bonanza he had with Franco-Nevada. And just recently, at the tail end of 2007, he tried to quietly bring Franco-Nevada back onto the public market. News still traveled fast, and Franco's IPO hauled in a record $1.2 billion.
Here's the beauty of this new arrangement.
Franco-Nevada held onto a pile of royalty contracts, even while under Newmont's shadow. And now, with its IPO money, it's perfectly positioned to snap up even more.
This is just one reason why "Chaffee Royalties" could very well be the safest way, right now, for you to play this ongoing global scramble for commodities. And by the way, the new Franco-Nevada could also be one of the better ways for you to play this opportunity, too.
However, I'm convinced I've found one that's even better.
Right now, it's still very small. Just as Franco-Nevada was at the beginning. And you can still get in at that early, easy entry stage.
Because it's so small, I can't possibly name it here. That wouldn't be fair to the small group of individuals who pay to follow my research on these specialized, lesser-known opportunities.
There is, however, a way I can share this with you.
Which I'd like to tell you about right now...
The Next Franco-Nevada
In my new report, Big Mining Money Without the Big Risks: How to Build Resource Royalty Wealth While You Sleep, I give you everything I've found ― after nine months of deep research ― on the best of the "Chaffee Royalty" opportunities open to you right now.
But the one I recommend first to my readers and friends is one I can't resist telling you a little more about right now.
If you've ever flown across the Atlantic, there's a good chance you've seen it.
Or at least, you've see the "crown jewel" assets that make this still undiscovered "Chaffee Royalty" opportunity so rich. It's called Voisey's Bay. And it's one of the most valuable piles of ice and rock ever discovered.
From a plane window, it looks like a map made of elephant skin. Nothing but frozen rivers and gnarled earth, stretched out as far as you can see.
But underneath, you'll find as much as $50 billion worth of mineral wealth. Discovered in 1993, it's already making fortunes. Not on gold or silver, but on some of the world's richest deposits of copper, cobalt and ― mostly ― nickel.
And it's the nickel that should to continue to make many more people very rich. Including anybody who holds a "Chaffee Royalty" deal on those same vast nickel deposits.
Let me just show you why...
- You need nickel to make steel. And China churned through 7.5 million tons of stainless steel last year. It'll produce 9 million tons before the end of this year
- Over 65% of world nickel demand goes into the making of high-grade stainless steel
- Even in a slowdown, China needs to build railroads to transport energy and cities to house their exploding population. For both, China desperately needs stainless steel
- China alone uses up six times more nickel now than it did in 2000
- In the last five years, Chinese nickel demand surged from 50,000 tons of nickel per year... to over 200,000 tons. No other country consumes as much.
- Global nickel demand could surge another 10% before 2009
- As with all metals, nickel prices fluctuate. But top metals analyst still see nickel prices spiking as high as $20 before the end of 2008.
You can see how this shapes up.
And buried deep in Voisey's Bay, you'll find one of the world's largest and highest-grade nickel deposits ― and easily the richest Canadian mineral discovery of the last 40 years.
There's easily enough nickel here to make this one deposit a cash cow mine for the next 20�25 years. If you want to own just the direct mining shares, you can look to a Brazilian company ― Companhia Vale do Rio Doce (CVRD) ― which owns and works the property.
But before you do, let me show you an even easier way...
Getting Paid for Just Breathing
Because CVRD does all its own exploration at Voisey's Bay, it pays for it. And so do its shareholders. They pay for the digging. They pay to process the tons of rock. They pay to get all the copper, cobalt and nickel ready for sale on the open market.
Sure, they make money. But they spend money, too. A TON of it.
So far, more than $1 billion just on developing CVRD's properties in this one area. That's nothing to sneeze at, even if the price of nickel is soaring. But I can show you how to tap the "Chaffee Royalties" tied to those same minerals so you can take profits without the costs of running a mine...
Without the major cost concerns.
Without even worrying whether or not the price of nickel will go up.
You see, right now, there's another company in Voisey's Bay doing what Franco-Nevada did so early in its own legendary march toward blockbuster 50-fold gains.
This company, like Franco, traded some early investment capital for the unique "Chaffee Royalties" rights connected with Voisey's Bay nickel. And now it's offering a piece of those royalties to you, as a potential shareholder.
This is a very rare opportunity.
It's not so difficult today to find other companies offering "Chaffee Royalties." But it's not as easy to find one in as early a stage as this one. With a share prices that's still this low... and nearly 100 royalty contracts either already producing or about to produce potential gains for new shareholders.
Remember, one of the "Chaffee Royalty" companies I told you about jumped from $3 per share to $19 very quickly... another soared from $1.10 to $32... and Franco-Nevada itself went from under $4 to more than $180 per share before it closed its doors to new "members."
This next future blockbuster royalty opportunity is already on the move.
On this Voisey's Bay deal alone, it should collect royalties between $16�20 million. And yes, that's if nickel prices today don't budge another inch.
What happens if nickel surges again to the record levels it hit last May?
If that happens, count on another $24 million in royalties going straight to this little company's bottom line. That might not sound like much for a big, well-known company. But for a company like this ― still undiscovered and valued at only just over $400 million on the stock market ― this is enormous. And just based on that, I already calculate that this could be an easy way to triple every dollar invested over the next two years.
But it doesn't stop there.
Because, you see, this little "Chaffee Royalty" outfit ― like the early Franco-Nevada ― has a lot more going for it that just the sweetheart royalty deal on Voisey's Bay nickel.
As I said, it carries nearly 100 royalty deals ― any one of which could start producing as well or better ― and all of which give you even more opportunities to pile up royalty wealth on five different continents... and in 10 different countries... in 18 different commodities.
Gold Gains With Much Less Risk, Too
On top of the Voisey's Bay "lock" this company has on Canadian nickel... it's also taking in piles of royalty cash for itself and its shareholders on some of Canada's richest gold deposits.
Not to mention even more gold royalties on one of the most productive gold mines in Chile... another huge "Chaffee Royalty" stream on more than 1 million estimated ounces of Nevada gold... and even more gold royalties on a large mine in Australia.
I haven't even mentioned the royalty streams on platinum properties... uranium properties... and even more copper and cobalt properties... just to name a few. Some pay huge royalties now, and some promise huge potential royalties as they steadily come online.
This company provides more than just access to some of the best gold, silver and diamonds... uranium, coal and oil... natural gas... nickel, copper, cobalt and zinc... in the world. It also gives you the diversity and balance that you just can't get from most straight mining shares.
Without sacrificing the rare opportunity for triple and quadruple gains.
And just as good as the royalties this company already takes in is the promise of future royalties on deals it's already made. Take this company's royalty rights on a hugely profitable gold mine in Chile.
Mining giant Barrick does all the work to get the metal out of the ground. And that mine alone should churn out as much as 775,000 ounces of gold per year... at a cost as low as $130 per ounce. In fact, this Chilean mine should be Barrick's third largest operation by 2010.
Owning Barrick directly isn't a bad move. It's one of the best mining stocks in the industry. But it's not cheap. And Barrick, as I said, faces some rising costs and shrinking cash flow.
This little company, however, owns the "Chaffee Royalties" on the same gold mine. It paid only $11.4 million, very early on. And I expect it to make that back many times over during the life of the mine.
Barrick and its shareholders love the deal, because it means they get money to expand exploration and production. This royalty company and its "program members" love it because it's yet another stream of resource royalty income.
As long as Barrick keeps bringing gold out of the ground, this little company rakes it in. And so do you, if you hold this company's still affordable shares.
Plus, while this company already makes very good money on its five best royalty deals... let's not forget what you get out of its huge portfolio of nearly 100 other royalty deals.
Right now, another 11 of these new royalty arrangements are scheduled to come online over the next several months. That's more royalty income without the major mining costs. And more value in this little royalty company's shares.
I told you before that the Voisey's Bay income alone was enough reason for this little royalty company to give you an easy triple on every dollar invested. But with these extra royalty agreements, including the 11 new ones that should come online over the next few months... this isn't just an easy triple... it could, conservatively, be a "ten-bagger" stock.
But even then, I STILL think saying you could make 10 times your money on this is also conservative...
How This Beats the Best Royalty Play of All Time
Wouldn't it be nice to know that without lifting a finger, you're accumulating the kind of money that could free you from work... fund your retirement... and pay for your future?
That easily could have been the case if you'd have known to move early on Franco-Nevada.
But let me just walk you through how that unfolded. Because, you see, Franco-Nevada going from zero to $40 million per year in royalty income took about 12 years. And that was ultimately enough to take its shares from $4 to over $180 per share.
Not bad, right?
Another of the "Chaffee Royalty" opportunities you'll read about in my new report, Big Mining Money Without the Big Risks: How to Build Resource Royalty Wealth While You Sleep, took 15 years to get to its first annual $30 million in royalty income. That was enough to get it from $1.10 per share to over $32. For a gain so far of 2,809%.
While I believe that last company could go still higher, I urge you to pay attention now to this little company I've been telling you about ― which I like to call the "next Franco-Nevada" for a very good reason.
You see, this little company recently managed to jump from about $400,000 in annual royalty income... to over $13.7 million... in less than two years! That's many times faster than even some of the best "Chaffee Royalty" companies I've ever seen.
What's the key difference?
The track record of this small company for picking the best royalty deals is impeccable. What's more, it just recently picked up another 16 new royalty deals... including royalty draws on four new gold mines... four new diamond properties... two new uranium deals... and three more new nickel royalties... plus royalties on rich new deposits of zinc, lead, silver, cobalt and molybdenum.
With nearly 100 royalty streams, your chances of the "next big hit" or major discovery could be huge. And remember, you need only one to pay off ― the way Goldstrike did for Franco-Nevada ― to see even MORE upward pressure on the value of this royalty company's shares.
If just one of these nearly 100 royalty deals pays off big... I'm confident that this isn't just a triple or a ten-bagger opportunity, but quite possibly the next 50-to-1 payday for anyone who acts on this quickly.
Maybe even better.
It's like owning an option on what could become the best resource play of the century. If it doesn't pan out, you still do extremely well. And if it does, you get rich.
Just in case you think I'm overstating the evidence, the fact is that at least two of these new royalty deals already look like they could add 25% in new royalty income to this company's bottom line over the coming year.
With that amount going up over the years ahead.
Right now, this company lists on the stock market for only $408 million. Given that it has only $22 million in debt... plus over 100 royalty contracts... and an easy $40 million already looking likely, thanks to its nickel and gold royalty deals alone... you're talking an incredible deal. Other royalty companies have already sold for double that multiple.
But as I said, few of these other mineral rights royalty companies have as good a spread of different royalty streams as this one. And with every dollar that comes in, it continues to add more great royalty streams to its portfolio.
Based on that, plus everything else I've already told you, I fully believe this is the best "Chaffee Royalty" opportunity listed on the market today. Maybe even better than getting into Franco-Nevada at the start of its amazing 50-to-1 profit run.
A takeover... more soaring energy prices... soaring interest in the shares... they could all take the share price higher, very soon... closing out the best of this opportunity very quickly.
So I urge you to get my report, by accepting the special invitation at the end of this letter, as soon as you can. As I said, Big Mining Money Without the Big Risks: How to Build Resource Royalty Wealth While You Sleep isn't free. And I won't take your money for it, either.
It's simply not for sale, anywhere or to anyone.
But there is one way to get a copy into your hands instantly. All you have to do is accept a special invitation. One that could potentially make you a fortune over the year ahead. And show you how to access a pool of investment wealth you never knew existed.
I Should Introduce Myself
My name is Chris Mayer.
Maybe you've heard of me. I'm known for the appearances I make on financial news shows like Fox Television's Bulls & Bears... Forbes on Fox... and the CNBC financial reports.
Or maybe you know me for my new book, Invest Like a Dealmaker. Or from interviews I've given to national radio talk shows or in the newspapers.
You might even know my background, which wasn't originally in financial market analysis at all. I was a commercial banker, for one of the largest and most respected banks in the U.S., overseeing a $250 million investment account and loans for $400 million companies.
It was a role I loved. I'm proud to say I was a vice president there before I turned 30. And not once during my tenure did we lose a single dime on our major corporate loans. That's a rare claim in lending.
I mention it because that background ― poring over the balance sheets of major and minor companies alike, looking for anomalies, mistakes and even hidden value ― was about the best stock picking training you can imagine.
It's why I eventually stepped away from the bank.
Because I loved the markets. And I loved picking winning stocks even more. I do that now, for over 29,220 readers, in a highly sought-after monthly stock market research letter.
But for years, I kept coming across a kind of investing opportunity that I just couldn't share in my widely read monthly letter. Stocks and other plays that were just too small... too "different"... and just that much harder to find or track for your average, mainstream reader.
The "Special Situations" Kept Secret
From You All These Years
The undiscovered opportunities I kept coming across are what Wall Street calls "special situation" stocks ― fast moving, hidden opportunities that are extremely popular with insiders but just too small or too little known for the average investing mainstream.
Takeovers and buybacks... secret mergers... heavy insider buying opportunities... and "Chaffee Royalty" moves like the one I'm showing you today.
Every single one of them revealed money most investors just kept leaving on the table...
Huge opportunities.
I couldn't stand knowing how many of these kept going unnoticed.
So I did something about it. I worked with my publisher to create a brand-new kind of research service, called Mayer's Special Situations.
This is not a simple newsletter for mom and pop market watchers.
It's a much more revealing and advanced research advisory service, tailored for elite readers. How are we doing so far? The service is barely 23 months old.
And we've already clocked gains like 44% on Fundtech... 100% on Lindsay Manufacturing... 122% gains on Gorman-Rupp... 132% on T3 Energy Services... not to mention gains on shares I can't name because they're still open. But we're already up 26% on one... 36% on another... 48%... 50%... 78%... and then 84%... 93%... 129%... 137%... 153%... the list goes on.
Just on an average of all the winners and losers in my current portfolio, we're already racking up an average 33% so far. And on a cumulative basis, a stunning 758% altogether.
These are opportunities you just can't read about anywhere else. And much earlier in the moneymaking stage than you'll discover anywhere else...
- You'll get the moves that go beyond regular stock investing, like the special "royalty program" plays I revealed to you today
- You'll get the stock opportunities pros would rather trade, above the humdrum, and hinging on the "behind the scenes" deals and insider moves we all know really move markets
- You'll get the picks that can move your money quickly, and in a very short time, but with my own "banker's twist" ― where I'll do the qualified number crunching most brokers don't even know how to do ― to ensure that I never ask you to take an unjustified risk
- You'll get advance warning on above-and-beyond moves, with far greater potential than you average, everyday stock opportunity.
Of course, the easiest way to reveal what Mayer's Special Situations can do for you is to let you try it for yourself. Which is exactly what I hope you'll do.
Here's What Others Are Already Saying
Matt M. was one of my earliest Mayer's Special Situations readers. Take a look at what he told me recently...
"Chris, your recommendations total $272,000 ― 15% of my portfolio... I like your approach and style ― and the results ― you identify opportunities that I would not be able to find by myself."
Here's one from subscriber Eric L...
"Hey Chris, your Libbey recommendation alone just paid for my Acapulco vacation ― thanks! Your reports are very professional without being stuffy... You're one of my main go-to guys... keep up the great work, and thanks again!
And this is what Special Situations reader Michael K. wrote in to report...
"I'm enjoying this new service, and I love the way you think about investments. My highest compliment is that I look forward to your updates and recommendations. I appreciate your thorough and thoughtful analysis and independent thinking and research. And the bottom line is you are making me money..."
You can guess I love getting letters like these. And I have piles of them. The gains, the rare and undiscovered alternatives to typical stock investing opportunities, the handpicked moves and careful research... I'm happy to finally have the chance to share this with people who can appreciate how rich these "special situations" opportunities can be.
I'm not looking to brag.
I just want to make it clear that you'll find something here that you're not going to find elsewhere. One popular financial writer even wrote, on his financial blog Market Metaphysics...
"Chris Mayer is the best financial journalist you've never heard of... Mayer's elegant prose will make you wonder why you don't find this caliber of writing in the mainstream financial press. Mayer's essays are sharp intellectual discoveries... all this and solid investment ideas, too."
Again, I'm proud of the kudos. But I'm even more proud of the results. And I'm going to urge you, in just a second, to give me a chance to do the same for you... starting immediately with the new research report I've told you about, Big Mining Money Without the Big Risks: How to Build Resource Royalty Wealth While You Sleep...
The Single Best Way for You to
Get Rich on Royalties Right Now
Right now, there are several companies listed on the stock market that use the "Chaffee Royalty" model to enhance shareholder wealth.
That's why I've spent the better part of the last year doing careful research to find only the best ones for you to consider adding to your portfolio.
And I've written each of them up in detail in the new report we've talked about, Big Mining Money Without the Big Risks: How to Build Resource Royalty Wealth While You Sleep. Inside, you'll find my full and targeted analysis on...
- One of the easiest and purest plays on the coming surge in silver prices. With this company's already solid "Chaffee Royalty" streams of income, you could tap into six of the world's top silver deposits, including a stream of expense-free royalty income on the largest silver deposit ever discovered. If you like silver as an investment play, this could be the single best way to play it
- With one move, this next "Chaffee Royalty" play could give you a claim on royalty deals for nearly 50 mining properties in mineral-rich Nevada... plus a piece in wholly owned and productive mines with several million ounces of proven gold already in the ground
- Like the other pure "Chaffee Royalty" companies, this next player owns no mines. Or mining equipment. In fact it has only 15 employees. But that hasn't stopped it from tapping into royalties from several of the world's best gold mines... on the future sale of over 50 million ounces of gold and more than 1 billion (with a "B") ounces of silver
- The new Franco-Nevada is a lot like the old Franco-Nevada ― jammed with choice royalty deals. After raising over $1.2 billion with a record-breaking IPO at the end of 2007, the new Franco bought back 190 royalties on metals and mineral companies... plus another 100 royalties on oil and gas producers. Is it still a good buy? I reveal the answer inside my report
- My favorite "Chaffee Royalty" company by far, I save for last. With nearly 100 mineral royalty rights and a brilliant track record of picking deals with as many as 25�30 years of production, this is easily the best way for you to combine big money-multiplying gains with higher safety than you could possibly get just owning mining shares outright.
I urge you to take a look.
And keep in mind, on each of these deals, the royalties are coming in on minerals already discovered, but there's also potential for more discoveries down the line. By already owning a piece of the royalty rights, you'd also be locking in on those future income streams too.
When the mines' owners invest more money to expand the mines, you'd also automatically own a piece of that expansion. Without investing another dime.
What if there's another breakthrough mineral discovery on one of the mineral properties? The royalty rights shareholders own a piece of that too. Along with the bump it could give to the royalty company's shares.
It's like owning an option on the resource boom, with which you get all the future upside gains at a much cheaper entry price. And without any of the major downside headaches.
As long as those mines are producing, the royalties roll in year after year. And with the companies I've found and featured in the report, you've got access to "long haul" deals that have as many as 25�30 years of production left in the related mines.
So those royalties have plenty of time to pile up pretty high. In other words, you could start benefiting from the royalties immediately. And then keep on collecting for many, many years to come. All while even more royalty rights get added to your share of the overall portfolio.
Why would you want to pass that up?
You'd have a tough time finding a better deal ― with full and growing access to the "mineral rush" upside, almost as far as the eye can see, but with very little to none of the conventional mining or exploration company risks ― and that's just the beginning of what I'm ready to share...
Five More "Special Situations"
Moneymakers You Don't Want to Miss
Right now, my Mayer's Special Situations readers and I are looking at five more rare "special situations" I don't want you to miss...
Unless you know mining, you've never heard of molybdenum. But it's known as the "energy metal." And it's key to all things energy. This little company produces it better than anybody, with a share price that's an easy double within the year. Even if "moly" prices don't budge
- The world's energy fields are getting old. And this one stock gives you a better way to play this than anybody. Right now, it's still deeply undervalued. But that won't last for long. In our first 11 days with this company, we were up over 6% ― so it's already on the move
- T. Boone Pickens, the 79-year-old billionaire, must love this next stock as much as we do ― he just bought $76 million worth. And I see it soaring much higher, on the back of a surprise supply-demand super-crunch in this one ignored raw resource
- This tiny little $2 copper stock is super cheap with huge potential. It's another easy double within the year. Plus, it pays a 5% dividend ― how can you beat that?
- Drug companies come and go, but with the boomers marching into the golden years... it's a sure bet someone somewhere is writing a medical prescription. The more they write, the better for this last company. It's a spinoff story with solid 300% gain potential ahead.
You'll find out the names of these rare "special situation" moves in your free report Five Stunning "Special Situation" Plays You Can't Afford to Miss. You can download that the minute you accept my invitation to become a subscriber to Mayer's Special Situations.
Here's how it works...
How to Gain Full Access to My
Elite "Special Situations" List
I'm sure you understand this "special situation" research isn't free.
These plays are more difficult to find and track than regular stocks. And you can share them only with a smaller group of readers. That way, the share price won't get influenced.
So the first thing I insist on is that we keep new enrollment at a maximum of 2,000 slots. Not one more. If you come in after that, I'm afraid you're out of luck until we can open enrollment again. No exceptions.
Second, I need to ask a reasonable price, given the potential of the plays I reveal and the level of sophistication I'm hoping to attract in my readers.
What's a fair price for gaining access to these highly valuable, undiscovered "special situation" deals? Before I answer that, let me tell you about just one more little-known opportunity you should add to your portfolio right now...
Grab Your Share of a 500 Billion Barrel
Oil Payout Underneath North Dakota
This is just one more thing I can't resist telling you about.
My readers and I have tracked it recently, and it's one of the most exciting investment stories taking shape in North America today. In short, it starts with incredible new research related to the "Bakken Trend."
This is an absolutely huge stretch of American acreage that could hold as many as 250 billion barrels of oil ― possibly even as many as 500 billion.
And smack in the middle of this suddenly valuable stretch of land is an astounding undiscovered play that was going for less than $2 per share when I first wrote about it for my Special Situations subscribers.
It's already shooting up ― I see a triple on these shares not too far into the future. And even higher ― as much as $10 ― not much longer after that.
I would love nothing more than to name it for you, right here.
But that wouldn't be the least bit fair to my paying readers. So I'll tell you what I'm going to do. If I hear from you immediately, I'll include a copy of this new Bakken Trend report, America's Secret 500 Billion Barrel Bonanza (and How It Could Make You up to Five Times Your Money), in your welcome package for Mayer's Special Situations.
The door to this incredible opportunity just swung open again in 2008. There's no telling how long it will last. That's why you must collect your share of "Chaffee Royalties" before they're gone for good.
So let's sum this up.
When you sign on for an elite, fully guaranteed subscription to Mayer's Special Situations, you immediately get...
- The breaking story about the incredible new energy investment discovery right here in America, in the new report I just told you about, America's Secret 500 Billion Barrel Bonanza (and How It Could Make You up to Five Times Your Money)
- You also get my exclusive new research on the "do nothing" wealth you can pile up in America's "Chaffee Royalty" opportunities, in your copy of Big Mining Money Without the Big Risks: How to Build Resource Royalty Wealth While You Sleep
- A bonus special report to get you up-to-date immediately on the very best of what the rest of my members are reading about right now, called Five Stunning "Special Situation" Plays You Can't Afford to Miss
- My members-only stock analysis, which I'll send directly and privately to my Mayer's Special Situations readers, once every month, with coverage of our newest exclusive on an undiscovered "special situation" stock or other alternative market play
- Plus, between every full analysis report, we'll stay in steady contact each week so I can make sure you're on target with everything new that's happening in the portfolio, from what to hold to when to take gains, and more
- And finally, only members will have password-protected access to the Special Situations private Web site, where you can find full backup of all alerts and updates, plus the latest news on the portfolio and downloadable copies of all your reports... so you'll never be left wondering what to do on these underreported, fast-moving and lucrative plays
- Here's one more bonus: Everyone who signs on will get free access to my publisher's brand-new Agora Financial Executive Series. The Executive Series consists of two daily e-letters and provides you with an insider's view of our editorial room. First, every morning, you'll receive the Rude Awakening delivered straight to your e-mail box. Each "Rude" article enlightens you with focused, articulate essays -- each of which delves deep into some of the core investments that Agora Financial is researching. Next, you'll also receive the 5 Min. Forecast every weekday at noon. The 5 Min. Forecast aims to cut through the incredible glut of "news" by providing you with a quick-and-dirty roundup of the day's most essential ideas and not-so-common knowledge -- in five minutes or less. Normally, this would be an $195 value. But because you're willing to take me up on this trial invitation, this bonus gift is yours free.
So with all of that, what is it worth? To you, it could be worth thousands... tens of thousands... hundreds of thousands. It all depends on how ready you are to jump on these often-missed "special situation" opportunities.
I've seen other services offering half this much and less... charging as much as $2,000... $2,500... even $5,000. Yet even with the coming price hike for new members, I won't ask you to pay anything even close to that.
You'll get the full year of all of my best "Special Situation" research and updates for the reasonable introductory price of only $995.
It couldn't be more plain.
One more thing...
Because of the nature of the stocks we'll cover... and the "special situations" that make them so valuable... I simply can't expand our Mayer's Special Situations membership circle any wider.
What's more, I must insist that when you join as a subscriber, everything you discover inside the circle stays in the circle. You must promise that you won't share our list of "special situation" plays with anybody.
If that's not something you can do, this service might not be for you. Because these unique plays are intended for your eyes only. No exceptions there, either.
Of course, I'm ready to make my own promises, too...
Try my Mayer's Special Situations for the next 90 days. Read the included special analysis in the reports I'll send. Try the recommendations, pocket the gains and see what you think.
If you don't see at least money-tripling opportunities in the reports and regular alerts and updates I'll send ― on any one of the royalty companies we talked about ― then I want you to cancel and I'll send you a full refund, no questions asked.
It's that simple. Either you see results or you pay nothing. Period. And by the way, after those first 90 days, you can still get a refund to cover the remainder of the subscription. Again, no questions asked. And no pressure. The choice is entirely up to you.
That gives you plenty of time ― with no pressure from me ― to make up your own mind.
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A Simple Retirement Program
In just three simple steps, you could be eligible for 75 "work-free paychecks."
Each deposited directly into your account, automatically over the next 24 months.
This is "get paid while you sleep" money.
You don't work for a dime.
And you don't have to stop there.
You can keep tapping this stream of passive "paycheck" income for as long as you like.
Some people who do this retire early. Others pile the money on top of what they've already socked away, speeding up the growth of their nest egg.
It doesn't matter which you decide to do.
Either way, you start getting paid.
In fact, you can arrange for your first check to arrive just weeks from today. Possibly sooner, if you act quickly on what I'm about to show you.
How you spend your windfall is up to you.
Put the money aside. Or put the extra cash toward a new car... a vacation you've always wanted to take... tech toys for your den... or save it up to buy a second home.
Use the money to help put your grandchildren through school... or go back to school yourself and study something you love... make a fat donation toward a cause you believe in... or just leave the automatic deposits untouched, while you enjoy the security of knowing they will be there when you need them.
But whatever you do, you have to start somewhere.
Which is why I'm writing you today about a very unique opportunity that most Americans have ignored until very recently. It's a chance for you and anyone you care about to tap into what could be a lifetime of endless income.
Money you earn without thinking about it.
Using the same simple secret that some of America's wealthiest families have used not just to get very rich, but also to stay rich and get even richer, no matter what's happening in the grand economy or even on Wall Street.
This is not a "hot tip" headline secret.
It's not something most Americans even think much about. Or at least not something they've thought about much until recently, now that so many other options have run out.
What I'll do for you below is give you a glimpse of the three simple steps you can take ― steps many of America's financial elite take ― to open up a flow of this endless stream of income, directed straight into your bank account.
And then there's something I'll ask you to do for me. Something that could make you even more money, on top of the steady stream of checks you could soon see landing in your mailbox.
All this could start very soon for you, with your first checks arriving on these dates...
- September 15, 2008*
- September 30, 2008
- October 1, 2008
- October 15, 2008*
- October 26, 2008
* "Double Payout" dates.
How easy is it to get this started?
This may be the best part...
"[This strategy] is the hidden key... [if more people
did this], you would see a nation of happy
investors whistling their way toward retirement."― Lowell Miller, 3-time author and CNN commentator
One of the best aspects of this is how easy it is to set up.
About five minutes on the phone with your broker. And that's it.
No running to your computer screen at every market blip. No taking notes or getting a ball in your throat every time the mainstream media flog amateur investors with the latest headlines.
No lying awake at night, staring at the ceiling. No anxious ticker tracking, phone dialing or running back and forth to the fax machine or your e-mail inbox.
All you do is wind up what I like to call the "paycheck portfolio" approach I reveal to you below... and let it do its thing. The checks should start arriving weeks after you take the three steps I reveal in this report.
In a recession. During a market crash. Even during a recovery.
And starting very soon.
And don't think you need a fortune to make this work. Because I can prove to you that's not the case.
How so?
I'll show you how to use this same strategy not only to collect regular work-free "paychecks"... but to quickly make the size of those checks grow over time, automatically.
But let me back up and show you how this is already working...
And for millions of Americans very much like you.
| The $615 Billion Cash Hoard Companies |
Right now, you'll find there's at least $615 billion in cash out there, just waiting to get carved up and sent out in the form of passive "paychecks."
Millions of Americans have already discovered this secret.
And they're already starting to collect...
- Just this past spring, Richard M. collected two passive "paychecks" worth $3,314 each. He's collected many more just like them. And he'll collect more, on top of that, over the weeks and months ahead
- Steve R. got paid $3,600 on April 9... collected another check for $4,200 less than a month later... and took another $3,481 two weeks after that. Without lifting a finger
- Former chauffer Vern J. used to drive rich people around to make money. He just got a check recently for $7,700 ― money he "earned" in his sleep
- Gary C. almost died on Sept. 11. Today, not only is he doing fine, but he just received an automatic passive "paycheck" worth $25,610 ― with more just like it on the way
- What would you do with an extra $8,809 windfall? That's what Daniel F. got paid in the check he automatically received on June 6, 2008. He'll have gotten more just like it by the time you read this
- Jeff E.'s passive "paycheck" deposits are worth an estimated $27,636 each. And he's eligible to get several of those checks sent to him automatically, each year
- 50-year-old Marty M. doesn't really need extra cash. But that won't stop him from banking his next passive "paycheck," for an estimated $53,331, just weeks from the day you read this letter
- Ian R.'s most recent passive "payday" topped $88,719
- Then there's Jeff K. His passive "paycheck" on April 8, 2008, totaled around $98,057. That's just one of many passive "paychecks" he'll collect this year.
How are they doing it? With a process much simpler than what most amateur stock traders, options players or even gold, property or other kinds of investors use...
| Three Simple Steps to Lock in |
It's true ― some of the fat-cat investors who do this have special access to this cash pool.
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And get paid handsomely for it.
Like retiree Henry M., from Canada.
Thanks to his personal "paycheck portfolio," he's eligible to collect several of these passive "paychecks" per year ― with at least four of them worth more than $630,000 each.
But after discovering just how many rich families and well-known investors did this with their money... to successfully build wealth in all kinds of markets...
I put my own analytical skills to the test and boiled down the whole process of finding the same kinds of opportunities to just three simple steps. They're filters, really.
To help you find the safest, most reliable, yet highest-paying streams of passive income. Money you can count on to keep working for you, even if the rest of the financial world is tanking. Even if other investments look like they're stuck in the mud.
Just doing this, you'll tap into one of the most powerful passed-down wealth secrets of the richest families in America.
Yet the steps that make it possible are so simple, I'm almost embarrassed to share them:
- Step One: Lock in income streams that build your wealth faster than inflation
- Step Two: Focus on income streams that will grow even bigger with time
- Step Three: Look for a passive income stream that won't "retire" when you do.
I've written a brand-new research report that shows you how to make each of these steps very easily. This new report is called The Ultimate Paycheck Portfolio: Double-Digit Yields... Even in Flat Markets. It shows you how to apply each step quickly, allowing you to start collecting income checks within just a few weeks of reading this letter.
Once you get the ball rolling, this can start happening surprisingly fast. Hundreds of dollars each month. Thousands of dollars. Even hundreds of thousands of dollars, just piling up in your account.
As you'll see in my new report, it's up to you how involved you want to get in the beginning. You can get started with very little. And you can take this to any level you need.
Some who do this might make $1,500&ndash2,000 extra per month... early on. With that amount growing by as much as $5,000... $8,000... $10,000 or even $15,000 extra. Doing what I show you in the report.
It can be an extra "safety net" for you.
It can even be a "lifestyle upgrade."
As you'll see, your copy of The Ultimate Paycheck Portfolio: Double-Digit Yields... Even in Flat Markets leaves the decision up to you.
Even better than just the steps, however, are the six specific "paycheck portfolio" opportunities I lay out for you in the report. See, not all income-cranking moves are created equal.
The six I show you in The Ultimate Paycheck Portfolio: Double-Digit Yields... Even in Flat Markets represent months of research to help you find the best possible moves you can make right now to increase your steady flow of passive monthly income... with the least amount of risk.
You'll read about each of these moves. Then I'll show you in the report exactly how to turn each of them into "paycheck" paying plays... that will feed directly into your account in the weeks and months ahead.
It's that simple.
Here's a glimpse of what you'll find inside...
| Automatic "Paycheck" #1: |
Here's a great example...
Since 1997, this first move has quietly doled out $838.4 million to people just like you and me, in the form of these passive direct-to-cash "paychecks" I'm telling you about.
Why would it do that?
See, here's what's happening.
These handsome payouts get doled out regularly by companies loaded with "extra" cash.
I know, in these days of soaring debts and wild spending, the idea of having too much cash to spend might strike some people as strange.
But if you knew more about markets, you'd already know that there are a few great reasons for companies to share cash directly with individual investors.
First of all, the checks we're talking about are shared with only these cash-paying companies' shareholders. And who usually owns the most shares of all in any given company?
The board members and insiders.
Doling out cash incentives to shareholders is a great way for them to take extra cash flow out of the business at a lower tax rate. When they get salaries or bonuses, that money gets taxed as income.
But not these passive "paycheck" payouts.
Of course, you get the same lower tax benefits on these payouts, too.
Another reason cash-heavy companies love to share cash with shareholders is that it's a great way to reward loyal stock buyers and keep the shares stable, or even rising, during rough markets.
It's that simple. The companies that can afford to give away the cash do better by doling out cash to you than by lending the cash or spending it themselves.
And that's exactly what this first "paycheck" payer I've found for you loves to do. Especially now that it's piling up cash in one of my favorite hard-asset, inflation-beating industries... timber.
That's right. Wood.
Here's the thing. Timber stocks tumbled as housing construction slowed. But Asian timber demand has remained massive... which is a fact many hair-trigger market amateurs have completely overlooked.
Meanwhile, because of the nature of the business, this company also works something like a REIT ― the real estate trusts that get taxed at a minimal corporate level ― maximizing even more cash to dole out to you, as a shareholder on the company "payroll."
But with this specific move, here's the best part...
| You Get Paid no Matter What |
When timber demand is high, the cash rolls in.
And indeed, this company just had a knockout year.
But even when demand slacks off ― unlike with most other businesses ― the timber assets just get more valuable. Even sitting still, they can grow in value as a company asset by as much as 10% per year.
Can you imagine if your house... your bank account... the value of your car or any stocks you might own... could all automatically grow 10% more valuable, year after year?
This, plus the continuing surge in Asian demand, leaves this company flush with piles of cash to divide up among shareholders, in the form of personal checks, sent to you directly in the mail.
Act before this company's next deadline and you could be one of the lucky few collecting checks from this company throughout the year.
Here's something else...
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This is one of a few companies doing this that loves to fatten up "paychecks" even more when the money is really flowing. For instance, that's what the board of directors of this company did in October last year.
After having a banner month, they got together and decided to double that month's payout.
Could you double your "paycheck" payout this time around, too?
There's always that possibility, provided you take the steps I show you before the coming deadline on this first opportunity.
Read The Ultimate Paycheck Portfolio: Double-Digit Yields... Even in Flat Markets for full details
Here's another one...
| Automatic "Paycheck" #2: |
Make this second move and collect a fat "paycheck" payout worth an automatic 12.4% annual return on anything you put into the play. You'll get checks for this second move sent out to you, payable as cash, on the 15th of every month.
Why so much?
There are other income-paying plays out there that offer much more. But they're dangerously risky. There are others out there that are clearly safe, but pay radically less.
Where does a high-paying play like this fall?
Right in the middle, with a nice juicy monthly payout... but surprisingly low on the side of risk. How so? Because it's narrowly focused on another of the most reliable long-term trends on Wall Street ― the soaring supply-and-demand cycle of energy.
See, this second move is a simple energy trust.
I'm sure you've heard something about these.
They're pools of cash created by well-heeled investors for the sole purpose of finding and controlling fat deals on oil and gas properties. Usually in Canada.
And that's exactly what this second move does, too.
It owns a string of rich drilling sites across the oil-rich Alberta Basin.
But here's why it has a double edge over other energy trusts...
First, it has a unique investment in extracting, producing, storing, marketing and shipping what's called "LNG" ― liquid natural gas. Usually, the LNG market has its biggest demand in the winter. But this company has just lined up to service a lasting surge of big LNG trade with Asia.
The deals this company has in place already stretch into 2009 and beyond.
What's more, this company gives you a second advantage: longevity. Remember, we said one of the key steps to a solid "paycheck portfolio" is making sure it keeps on paying long after you retire. And this one ― unlike many other energy trusts ― looks as if it will.
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Every year, its cash pile keeps getting bigger. From $128 million in 2003 to $468 million in 2007... with an even bigger pool on target for the end of this year... and no plans to stop shelling out payouts to shareholders over the years ahead, even with much talked-about changes coming in Canadian tax laws (which don't apply to investors outside Canada at all, naturally).
Send for my new research report, The Ultimate Paycheck Portfolio: Double-Digit Yields... Even in Flat Markets.
You'll read all about this second "paycheck" paying move and how to start getting paid regularly by this opportunity, on the 15th of every month.
Use a move like this to sleep better. Use it to "upgrade" your way of life. Or use it just so you can make sure you don't ever have to worry about running out of money in retirement.
And here's a third way you can make this "paycheck portfolio" strategy work for you...
| Automatic "Paycheck" #3 |
I love this third "paycheck" producing move.
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And you're going to love it, too.
For one thing, it may be one of the world's most reliable ways to get paid for just holding shares in a company, big or small. See, this third "paycheck" paying company has stuck around since 1977... and it's made a profit every single year.
Even some of America's biggest and "best" companies can't make that same claim.
Something more: This third "paycheck" paying outfit is family owned.
The family controls 44% of the shares.
Does the family put its money to good use?
Since 2002 alone, it's handed out over $230 million in shareholder "paychecks." You can easily qualify to collect a share. In fact, I believe it's getting ready to hand out more than it usually does.
How so?
First, let me name the "mystery" opportunity I'm talking about.
You'll find this company operating in the one "silent" industry that drives almost everything you know about the world economy. An industry that moves over two billion tons of oil per year... along with most of the world's wheat, rice and grain... steel... iron ore... coal... cars... flat-screen TVs... raw minerals... soybeans... you name it.
I'm talking about shipping.
A good shipping company can take in as much as $40,000 per day on each ship it has in the water. And this "paycheck" paying shipper I name in my report has 42 working ships in its fleet.
That already makes it one of the world's most dominant players.
And like most other shippers, it's loaded with extra cash. And itching to dole that out to its shareholders. But here's an extra edge that makes this one cash-paying company that I'll name even more attractive than all the rest...
| The April 2010 Law That |
See, for all international shippers, there's an international mandate coming that's about to change everything. After too many spills, too many accidents and too many close calls... by April 2010, every shipper must have double-hulled tankers.
No exceptions.
As you can imagine, that means huge expenses for hundreds of shipping companies. But unlike many of its competitors, this company already has double hulls on all of its ships. What's more, its entire fleet is about half as old as the other ships running the trade routes.
What does that mean for you?
As that 2010 deadline gets close, business ― and cash flow ― for this company should skyrocket.
That means a lot more cash to dole out to you, in the form of "paycheck" payouts.
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In fact, this third company just had a record jump in profits. Plus, it's got another six ships joining its fleet over the next 18 months. With each ship taking in about $15 million in shipping fees every two years.
You'll find this move, along with the first two, detailed in full in The Ultimate Paycheck Portfolio: Double-Digit Yields... Even in Flat Markets.
I'll tell you how to get your copy in just a second.
But before I do, I should introduce myself...
| What You Can Learn With $200 Million |
My name is Chris Mayer.
Maybe you've heard of me.
I show up every now and then on financial shows like Fox's Bulls & Bears... Forbes on Fox... and the CNBC financial reports.
I've also written a popular book, Invest Like a Dealmaker: Secrets From a Former Banking Insider. I say this not to brag, but just to show you just how seriously I take everything we've talked about so far.
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See, I'm not your average analyst.
And I'm not a broker. Frankly, I don't care for Wall Street.
I'm a banker. And something of a market "geek."
I've loved studying finance and commerce for as long as I can remember.
Even before I hit 30, for instance, I was vice president of one of America's oldest and prestigious lenders, Provident Bank. I read essays written by Austrian economists during breakfast.
How big a difference is that from what you might expect, say, from a broker who cut his teeth on Wall Street? We couldn't be more different. For one thing, your average Manhattan market jockey rarely has his own neck on the line.
He's trading "other people's money."
Not the same for me. One of the things I did for the bank, for instance, was manage a portfolio of about $200 million of the bank's own money... while making the final call on multimillion-dollar lending deals for companies worth $400 million or more.
I didn't have the luxury ― or desire ― to gamble with the bank's money the way some brokers do with private investors accounts. Banks take protecting their own cash pile seriously.
Whereas your broker might glance at a shareholder brief before calling clients on the phone, I had to get under the skin of a company to do my evaluations... burrowing deep into the numbers... digging out hidden liabilities... beyond price-to-earnings ratios and the other standard smoke-and-mirrors myths Wall Street brokers love to swear by.
I learned quickly that to really know where your money is going, and to get a return on that money, you have to do a full exploratory exam of a company's books so thorough it would embarrass even an IRS auditor.
I use exactly those same techniques now when looking for investment opportunities. Just like the ones we've already talked about. And just like the rest of the six opportunities I name for you in the copy of The Ultimate Paycheck Portfolio: Double-Digit Yields... Even in Flat Markets I'd like to send.
For instance, here's another one...
| Automatic "Paycheck" #4: |
What's the safest thing you can own during rough markets?
You want to sock your money safely away in the things people can't do without.
Bridges, roads, airports, food, water, power... infrastructure.
For instance, you might never give a second thought to the miles of power lines that feed electricity into our cities. But no matter how bad the economy gets, we need them.
And this next company I'll show you dominates that market.
Not just here in the U.S. It controls over 5,000 miles of transmission lines in Chile. Plus another 1,300 miles of lines in Brazil. And 340 miles in Canada. All told, more than $494.4 million worth.
It's also got 634,000 acres of Vancouver timberland. And another 588,000 acres of timber in Oregon and Washington. That's built-in protection against soaring inflation. That's a lot of security, in a time when most Americans could really use some.
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What's more, because this stock has such a well-spread stake outside the U.S., it's less than 30% correlated to the Dow. That means this company can still thrive, even when the U.S. markets are tanking.
You can see how this adds up when you roll each of these moves together.
One "paycheck" after another, feeding directly into your accounts.
Here's one more...
| Automatic "Paycheck" #5: |
From March 2000 to the end of June 2008, this next company ― which you'll find right along with the others, when you let me send you a copy of my report, The Ultimate Paycheck Portfolio: Double-Digit Yields... Even in Flat Markets ― grew every shareholder dollar by close to 280%.
That's good already.
Here's why I expect it to get even better...
See, some of the best and most reliable "paycheck" payers you can own are companies that run pipelines. Especially when energy demand is high. And rising. Why?
Because owning a pipeline is like owning a highway. You get to collect a "toll" from other power companies for every cubic feet of energy that courses through your network.
And this company owns over 565 miles of energy pipelines running from Oklahoma to Missouri. Plus another 7,900 miles of gas pipelines running from gas fields to power utilities.
Here's the best part...
| Tax-Free Money, Paid Directly to Your Account |
Imagine if you could slash the taxes on the income you collect.
Even better, imagine if you could legally get away from not paying income taxes at all.
That's exactly what this company I'll name for you gets to do. How so? It's part of the clever way it's set up its partnership, allowing it to snap up assets and shelter them under a kind of tax-proof umbrella.
I can give you the full details inside your copy of The Ultimate Paycheck Portfolio: Double-Digit Yields... Even in Flat Markets.
What it adds up to is that none of the partners on the inside have to pay income taxes on the money they pull out of this pipeline company, either.
And neither do you, until you sell off your stake in the "partnership."
The only catch? You file an extra form at tax time. That's it.
Of course, I will explain to you exactly how this works in the report. But it can add up to a lot of extra money for you. Just because of the unique way this next "paycheck" payer set up its business.
How big is your share of the payout? Better than 10%, paid automatically on every dollar you put in. And that's something you can count on, too. How so?
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Not only has the partnership beaten the minimum it's supposed to pay for the last 23 quarters straight... it's also raised that amount for the last seven quarters in a row.
Of course, you can read all the details in The Ultimate Paycheck Portfolio:Double-Digit Yields... Even in Flat Markets
But remember...
With every one of these moves, you'll need to act quickly...
| Act Before the Next Deadline or Your |
Over the next eight quarters, we're looking at as many as 75 "paychecks" doled out by the companies you'll find named in your copy of The Ultimate Paycheck Portfolio: Double-Digit Yields... Even in Flat Markets.
The next "paycheck" payout date you could be eligible for is September 15th, 2008.
Act in time and qualify. Or wait and miss out.
Why miss the opportunity when you don't have to?
Personally, I'd hate to see that happen.
So I'll tell you what I'm going to do.
Just to help you decide to act on this quickly...
| I'd Like to Give You the Rest of My Moneymaking Stock Research to Try at no Charge, for a Full Year |
Earlier, I told you about the $200 million I managed during my tenure as a bank vice president and commercial lending analyst. I'm proud to say the bank never lost a single nickel on any of the multimillion-dollar lending deals I helped write.
I take pride in that record.
Just as I take pride in a whole new kind of record I've started piling up. With a whole new string of winning recommendations I'd like to start sending you, with your permission.
See, even back in my days at the bank, it wasn't long before I realized all the deep analysis I did there... analysis that piled up fortunes for the bankers... could work just as well helping private individuals grow their fortunes, too.
So ultimately, I decided to walk away from my banking career to break out on my own.
That's when I launched an elite analysis service I call Capital & Crisis. At the start, I meant it only for top industry players. And including about 150 of the sharpest minds on Wall Street, they lined up to get it.
I could have stopped there, but something even more monumental happened.
I met the head an international market research service... with over 119,000 paid-up members... who had an estimated combined net worth of over $14.7 billion.
And a whole new chapter of my story began.
| How 24,000 People Discovered |
Addison Wiggin, the head of the internationally renowned Agora Financial research team, begged me to bring Capital & Crisis into its inner circle of quality services.
Quickly, my "insiders" newsletter exploded to include over 24,000 readers. And you can bet I'm even more proud now of what we've been able to do together, with a whole new stable of international research resources at my fingertips.
My network of top-level contacts has exploded. I've taken my readers to opportunities deep in unexplored pockets of the market... across America... and overseas, even to China.
And we've managed to cram our pipeline with one solid, safe gain after another. Not just of the kind we've talked about here today. But with diverse winners like...
| Leucadia National +109% Brookfield Asset Management +115% CNX Gas Corp. +44% ABX Air +38% Walter Industries +44% AVX Corp. +12.4% Ameriprise Financial +77% Grupo Aeroportuario del Sureste SA +100.3% Agrium +232% Plum Creek Timber +28% Goldkist +39% Arch Capital Group +45% Presidential Life Corp. +65% Rosetta Resources +11.2% | Intrawest Corp. +72% Orient-Express Hotels +109% Companhia Paranaense +121% Imperial Sugar Co. +145% Catellus Development Corp. +24% FEMSA +29% Chiquita Brands Intl. +52% Bandag +18.3% Industrias Bachoco +19.75% Questar +113% San Juan Basin Royalty Trust +144% Guitar Center +151% Sovran Self Storage +155% Popular Inc. +165% |
We're not doing this in fits and starts.
My strategy lets us see gains more consistently.
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I'm telling you this because I'd like you to share in this success.
I'd like to start sending you Capital & Crisis.
At no charge, for up to a full year. Free.
Why? Because I want more people like you among my subscribers.
They're not gamblers with their money.
We're not banking their futures on the next highflier.
Instead, my readers and I would rather lock in smart gains safely. Without sacrificing performance, but without taking risks we don't need to take, either.
I see lots of other services that don't bother with that approach. And I wish them and their readers all the luck in the world. But to be perfectly honest, there are very few companies strong enough to make it into my model portfolio.
And I sincerely believe you're the kind of person who will appreciate that. Just as so many of my other readers do. They write me to say as much. Take a look at some of the things they've said...
"The Best Newsletter I've Found So Far"
"I just want to say that I have subscribed to quite a few investment newsletters before, and this is the best one that I have found so far. You have turned me from a trader into an investor with your investment insights. I would just like to thank you for this newsletter. Keep up the good work."
― R.D."Chris Has Grown My Investment by Fivefold in a Month"
"You recommended a short sale of Japanese bonds through Chris Foster at Friedberg Mercantile in Toronto. I followed your recommendation, and through careful and constant attention, my small $5,000 investment has grown by over fivefold in a month... I enjoy and look forward to your monthly communiqués. Keep up the good work!"
― J. Redmond"I Will Be a Long-Term Subscriber"
"I just subscribed to Capital & Crisis this month. I've been reading through the back issues of your newsletter, and I just wanted to tell you how impressed I am with your writing style and content (and your track record too, of course). Reading through the archives is like getting a university-level education on sound investing principles. I am very much impressed with your letter and think it is very likely I will be a long-term subscriber."
― L. Prokop"I Wish I Had Been Reading Such Thoughtful Analysis 24 Years Ago"
"After spending 24 years in the investment business (and building assets under management to $350 million), your insights are probably the best I have seen. Your study of the great money managers, past and present, and your ability to succinctly distill, explain and relate their philosophies to your specific recommendations is a true talent. I only wish I had been reading such thoughtful analysis 24 years ago."
― S. Ostlund"It's Probably the Smartest Letter I've Ever Seen"
"I'm quite a new subscriber, but I must say that I really love it. It's probably the smartest letter I've ever seen, and believe me, I've seen a lot of them in more than 10 years. Congratulations for the good job."
― M. Dejolier
What I'm saying is simply this.
I believe we share the same ideals.
And that's more than enough reason for me to have you on board with the rest of us. See, Capital & Crisis is not just a newsletter to me; it is a reflection of my ability to provide successful investment recommendations to my readers on a consistent and reliable basis.
I take pride in the opportunity to bring big returns to readers who believe in my work.
And I'd love an opportunity share that work with you, too.
It's really that simple.
The undiscovered bargains... the rock-solid "lifetime stock" performers... the shockingly safe big growth opportunities... heavy-hitting income producers... you'll find them all in one issue and update after another.
And as I said, I'd like you to have all that free of charge for up to a full year.
| Why Give It Away Free? |
Think of it as a backstage pass... that lasts all year.
And doesn't cost you a penny.
That includes an issue every month, packed with my best new research and all my latest recommendations. Along with research updates every single week. And around-the-clock access to the private members-only Capital & Crisis Web site.
Normally, that would cost you the published price for Capital & Crisis, which is $159 per year.
But with this special invitation, your cost to sign up is $0.
For up to 12 months.
Is there a catch? Absolutely.
But it's one I'm sure you'll also appreciate...
| How to Lock in a Lifetime of |
My publisher hates it when I give stuff away for nothing.
So I had to make him a deal.
To get your full year of Capital & Crisis as a gift, all you have to do is send for the brand-new report we talked about, The Ultimate Paycheck Portfolio: Double-Digit Yields... Even in Flat Markets.
Inside this report, you find out how to become immediately eligible for up to 75 extra income "paychecks"... that could start arriving in your mailbox weeks from today, and continue uninterrupted for the next 24 months. Or longer, if you decide that's what you'd like them to do.
In return for this... plus the extra gift of the monthly Capital & Crisis issues, the weekly updates and 24/7 access to the private members-only Capital & Crisis Web site... you pay just four installments of $14.75 every three months for one year.
That's it. For everything.
Let's take a look at how that adds up.
You're getting...
- At least one full year of my popular Capital & Crisis monthly research letter (published price value of $159, but yours free to try along with this report, for 12 full months)
- Updates every single week on every important piece of news on the markets and all the picks in both your report and the Capital & Crisis members-only portfolio (a $79 value, but yours free)
- Complete online access to the entire bank of Capital & Crisis issues and update archives (an $97 value and normally reserved for paying members only, but yours free)
- Plus, if you're not a subscriber already, I'll also make sure you get a FREE subscription to the highly praised and widely read Daily Reckoning. And finally you'll get elite access to the Agora Financial Executive Series, a members-only dispatch of two profit-laden e-mails, the Rude Awakening and the 5 Minute Forecast. Both will alert you to specific investment research and recommendations from across the markets we cover.
Altogether, that's $335 of research right there.
Yet you pay for only the report.
Either in four easy installements or even better choose to cover the whole cost of the report upfront, and I'll throw in an extra brand-new research report, Buy and Hold This Stock for Unlimited Upside.
That's just 16 cents per day, spread over a full year.
And everything I mentioned is included, along with your order.
If you'd like to try everything for two full years, I'll give you two more special reports ― India Rising: The Three Best Ways to Profit From India's Explosive Growth and Four More Blockbuster Stocks You Can Get at Huge Discounts to True Value ― plus double the number of Capital & Crisis issues and weekly updates, and everything else we just talked about above.
You can find the full details by clicking the button below.
One more thing...
| Love All This for a Lifetime... Guaranteed |
Collecting the 75 income "paychecks" I tell you about in your copy of The Ultimate Paycheck Portfolio: Double-Digit Yields... Even in Flat Markets is so effortless you can literally do it while you sleep.
But I want your trial experience with the rest of the research I've promised you to feel just as effortless, too. That's why I insist on making you this unconditional guarantee...
Along with your copy of my new report, try the rest of my research and see if it's for you. If you decide it's not, you're invited to cancel anytime up to 12 months for a full refund. Even if it's the last day of your final issue. You get to keep everything I've sent, no questions asked.
Why would I make such an unrestricted promise?
First, because I know that the bigger a guarantee I make, the harder I have to work to put my money where my mouth is. And that's perfectly fine with me.
But second, because I know something you don't.
Which is that, so far, my research service Capital & Crisis has one of the highest "renewal" rates in the newsletter industry. That means my readers like what they see enough to sign up again and again ― year after year ― at a higher rate than you'll find with just about any other service you'll come across.
That's why I'm happy to give you a chance to see what we do.
Because all I want is the chance to earn your loyal readership, too.
Let me hear from you soon, so I can rush you your materials.
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America's "Other" Energy Crisis
With election season now kicking into a higher gear, the real issue of 2008 has suddenly grabbed the center stage. From Maine to California, and everywhere in between "it's the energy crisis-stupid" and it's changing the politicall landscape.
But that is what happens when energy prices skyrocket, wallets slam shut and our economy gets crippled in the process. Peak oil has its price and this is one cup that won't be passed.
Of course, the problem is that while our leaders failed to lead, the peak oil train just kept coming on down the tracks. In four short years, oil has gone from $40 to $140.
So people worry.... people get angry.... and suddenly people demand answers. And who can blame them?
That has made for some strange bedfellows as the political classes do what they do best - pander for votes. So now almost everyone but Nancy Pelosi wants to drill, drill, drill.
But even Nancy has her reasons. She is "trying to save the planet" you know―pretty heady stuff for a kid from Baltimore. (Full Disclosure: My Dad says he used to date Nancy back in the day. Of course, if he had married her instead of my mom I wouldn't be poking fun at her today. Cosmic huh? I bet she's sorry now.)
Meanwhile sensible people have agreed that while there is certainly no one solution to the energy problem, everything that we do have needs to be thrown at it. That includes a much bigger role for nuclear energy in the years to come and the power of enriched uranium.
Before I get into the investing in uranium side of things, let's delve a little deeper into the debate...
McCain Powers up with Nuclear Energy
John McCain, of course, is nuclear power's biggest champion this fall. He's the best thing to happen to the industry since E=MC2.
During a campaign stop at a nuclear power plant in Michigan on Tuesday, McCain said, "If I am elected president, I will set this nation on a course to building 45 new reactors by the year 2030, with the ultimate goal of 100 new plants to power the homes and factories and cities of America."
That is pretty heady stuff for a guy that finished last in his class at the Naval Academy. Even still, at least McCain was on target. Nuclear power is one of the ways forward.
Even Barrack Obama agrees saying recently, "I think nuclear power should be part of the mix when it comes to energy."
That is a stunning reversal for an industry that had to fight tooth and nail just to survive over the last 20 years. But like I said earlier, people want real answers this time.
But like its counterpart, oil, the price of natural gas has gone through the roof too- jumping 136% since last August. That has put another natural gas "Super Giant" on line to be tapped for massive profits.
It's called the Marcellus Formation and it's bigger than even the Barnett Shale.
Tap into it with a subscription to The Wealth Advisory today. It will be the best $49 investment you will ever make.
Click here to learn more about The Wealth Advisory.
Enriched Uranium: America's "Other" Energy Crisis
However, one of the biggest misconceptions about nuclear power at the moment is this: It will end our energy dependence foreigners. The truth is it will not. That's the dirty little secret most people don't know about nuclear power in the United States these days.
You see, while everyone knows we have become virtual slaves to foreign crude, only a few know we also import 92% of the enriched uranium necessary to run our nuclear plants. That is even worse than our predicament with oil where 70% of our supply is now imported.
That's why I call enriched uranium America's "other" energy crisis. Because if nothing else changes we could conceivably exchange one set of shackles for another if we are aren't careful.
And it will likely only get worse when a 20 year program with the Russians called Megatons to Megawatts runs its course in 2013 since almost 43% of what we use comes from dismantled Soviet warheads. After that supply runs dry, it is not inconceivable we could be completely on our own, unable to meet our own needs.
That's a current danger that we can ill-afford and Washington knows it. Over time, those potential shortages will only be exacerbated as more and more nuclear plants here and abroad begin to come online and demand skyrockets.
According to the World Nuclear Association, there are 439 reactors operating globally, with 36 under construction. Moreover, there are also 93 new reactors on the drawing board, with another 219 proposed.
Investing in Uranium: Enriched Uranium Demand Skyrockets
And should all of the planned and proposed reactors be built, the world total will be more than 787, or almost a 79% increase over the current level―-the vast majority of which will be fueled with-you guessed it― enriched uranium.
So at some point in the future, enriched uranium could be no different than oil-sold off in a tight market to the highest bidder. Sound familiar?
Meanwhile, the price of uranium is headed higher since falling off its $136/lb. peak in 2007. Its current spot price is roughly $64/lb, which is a slight recovery from the $59/lb recorded only weeks earlier. In fact, Goldman Sachs analysts now see uranium rising to over $90/lb in the near future. For reference, uranium went for as little as $10/lb. only 6 years ago.
Higher future demand will only push the price of the commodity even higher.
Unfortunately, nuclear energy is just another area where we have been caught footed again. That's because while America allowed its nuclear industry to wither on the vine out of fear, the rest of the world moved on.
While we dithered, everyone else kept building...and building...and building. The good news though is that the process of rebuilding our nuclear industry began with the passage of the Energy Policy Act of 2005.
In it, the seeds of the industry's rebirth were sown. Specifically, the 2005 act provided the nuclear industry the following:
§ $3 billion in research subsidies
§ Over $3 billion in construction subsidies for new nuclear power plants
§ Nearly $6 billion in operating tax credits
§ Over $1 billion in subsidies to decommission old plants
§ A 20-year extension of liability caps for accidents at nuclear plants
§ Federal loan guarantees for the construction of new power plants
However, as important as the legislation has been to the industry, it is just the start. After all, rebuilding an entire domestic industry takes time.
Until then, Americas "other' energy crisis is one that we can't afford to ignore. Our leaders need to lead.
By the way, if you think McCain's talk of 100 new reactors is a bit unrealistic consider this. There is company in Arizona that is ramping up to produce 4,000 smaller sized reactors that are so small they can be shipped by rail and set up on site. And they are not the only ones headed in that direction. But that is a topic for next week.
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Solar Energy in an Oil State's Outer Reaches
In renewable energy development, the world's least developed countries should have the highest access to solar power.
From rural villages in Africa and Asia to backwood towns right here in the U.S., green energy options are providing wide-range assistance for disadvantaged regions.
Consider Nigeria, which is an OPEC member and until recently, Africa's largest oil producer. I say, "until recently," because a combination of political turmoil in the country's petroleum heartland - the Niger River delta with criminal gangs, and siphoning from pipelines by poor citizens has made output sporadic. Plus, on Thursday Nigeria handed over control of the oil-rich Bakassi Peninsula to neighboring Cameroon.
This chaotic situation has allowed Angola, and soon Libya, to skip to the continental lead in oil production.
But out in the countryside, local newspaper This Day reports that solar energy is gaining traction.
22 rural communities in the state of Zamfara, totaling 70,000 people, now receive electricity from photovoltaic cells.
Among the 59 projects already underway, there are 29 health care centers serving basic medical needs, and 20,000 young people will receive job training related to the solar modules.
So in just one area we see solar power bringing all-hours access to medical care and vocational training, in a vibrant economic sector that has immediate local impact.
Clean Power in Urban and Rural Areas
Now, Nigeria has the largest population of any country in Africa, projected to reach over 350 million by the middle of the century. It would be foolish to pretend that solar alone will meet the needs of every citizen, but energy options are essential in nations where population and consumption are roaring forward.
From 11% of the population living in cities in 1950, the United Nations projects that 65% will live in urban areas by 2030. That's a tremendous strain on power generating capacity and the infrastructure needed to convey electricity.
We hope to see Nigeria, which gets much of its oil from offshore platforms, transition into an offshore wind powerhouse.
Of course, Africa isn't the only place where the flux of migrants from villages to metropolises is apparent.
Global Renewable Energy
In rural China, far away from the mega-cranes and Olympic fervor, parabolic water heaters are keeping families from having to spend their days gathering wood that will burn dirty and lead to breathing problems. Still, the opportunities that come with more time for education and leisure often lead the upwardly mobile away from home.
I've seen the transition with my own eyes, and the rural-urban wave is one major point of modern life you have to grasp along with the changing energy economy.
We're tracking plays like World Water and Power (WWAT.OB), which has co-generating mechanisms to pump water from solar devices. Such technology is increasingly necessary not only in the boondocks but in crowded slums that develop when there isn't enough housing for rural immigrants.
You may be hearing about renewables more and more from leaders of the world economy and government these days, but don't forget it's the individual consumers who need change the most, and who can deliver the highest returns on investment.
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148 Billion and Growing, International Green Takes Off
- Solar Cell Maker Posts 35% Profit Growth
- Company Profit to Rebound on Sugar Price Gain
- Company Revenue and Profit Rise in 2Q
- Company Income Increases 40% from a Year Ago
Those are four recent headlines from four different international renewable energy companies.
More to the point, those headlines are from companies that have been recommended for purchase in the Green Chip International portfolio... and the profits are already starting to show.
But this is nothing new. It's merely a snapshot of headlines that came across the wire this week.
Similar headlines have been generated every week for months... and they will continue for years.
This is because renewable energy is one of the hottest industries in the market. And will continue to be as long there is a prolonged energy supply crisis, which there will be.
If the world wants more energy, it's going to have to get it from renewables.
That's why over $148 billion was invested in the sector last year. And it'll be up to $450 billion or more by 2015.
Now, there's money to be made in the burgeoning renewables industry here in the states. But the fact remains that international markets have received the lion's share of investment dollars thus far due to a more favorable policy landscape.
That said, there is no reason to be leaving these easy profits on the table. Especially when the companies involved are generating headlines like the ones mentioned earlier... week after week.
I've prepared a full report on the possibilities of the international renewable energy market.
The report contains all the details you need to ensure you don't miss another day of these scorching profits.
Call it like you see it,
The world's most elite investors - we're talking about the richest 1% - are going green.
In fact, according to the United Nation's Environment Program, these folks actually plowed $148 billion into the renewable energy sector last year.
But there's one catch...
Nearly none of those investment dollars are staying in the U.S.
You see, the most profitable renewable energy markets aren't anywhere near the U.S.
Truth is, despite all the "green" hype here at home, both Germany and China beat out total domestic green investment last year by more than $6 billion.
And countries like Spain, Norway, and even Tunisia have government-backed renewable energy initiatives that dwarf anything happening stateside.
Heck, even Latvia will be getting 42% of its electricity from renewables in less than 3 years.
So it should come as no surprise that the real players in the renewable energy game aren't making their fortunes on domestically traded renewable energy companies. They're making their fortunes overseas.
There's no secret formula, and no need for expensive, full-service brokers.
In fact, if you currently trade U.S. or Canadian stocks, you can trade these foreign renewable energy stocks too.
So let's get to it.
Here's how to...
Global Green Energy Gold Rush
Few mainstream financial publications are covering it, but the global transition to renewables has already begun.
- In Israel, Project Better Place is being subsidized and promoted by the Israeli government in a goal to put as many as 100,000 electric cars on the road by 2011.
- In China, officials plan to nearly double the proportion of renewables in the country's overall energy mix to 15 percent.
- Algeria is in the process of building a 3,000-kilometre cable between the Algerian town of Adrar and the German city of Aachen to export 6,000 megawatts of solar thermal power by 2020.
- Brazil began its Pro-Alcohol program more than 20 years ago to promote the use of highly-efficient, and locally-grown sugar cane ethanol as an alternative fuel for cars. Today, there are more than 2 million flex-fuel cars on the road over there.
- The German government plans to reduce its CO2 emissions by 40 percent by 2020. But the only way they can accomplish this goal is with large-scale renewable energy integration. And it's already underway!
There is no debate as to whether or not a complete overhaul of the international energy economy is coming.
In fact, it's happening right now - at this very moment.
And the best part is - this global energy transition is producing hundreds of international renewable energy opportunities.
Here are just a few we've recently capitalized on...
- Praj Industries (India) - 200% gain in a year
- Geothermal Resources Ltd. (Australia) - 300% gain in 18 months
- Ecosecurities PLC (UK) - 100% gain in a year
- Renewable Energy (Norway) - 155% gain in a year
- Sunways (Germany) - 61% in a year
And this is while many energy stocks here in the U.S. were getting beaten down to new lows!
Of course, most U.S. investors will never even hear about these opportunities, much less profit from them.
In fact, the only folks who have ever really been able to make money on international renewable energy plays have been the big institutional investors and VC firms - not the average investor with a few thousand bucks to invest.
But the fact is, anybody can get in on these international profit plays.
You don't need an "in," or have to represent some big investment firm.
And you certainly don't need some type of bureaucratic permission to make the money.
Truth is, you can actually get in on these deals right now, from the comfort of your own home... or from anywhere else in the world, really.
If you have internet access, you're merely a click away.
It's really just a very basic system that works like...
For Individual Investors
We've come up with a way - a virtual "Green Hedge Fund" - that gives you the opportunity to join the big institutional investors and venture capitalists as they continue to make millions in the international renewable energy sector.
We call it Green Chip International.
And the system we've set up right here in the U.S. allows individual investors like you to profit from today's emerging energy innovations overseas - while the U.S. and the "Old Guard" continue to play catch-up.
Let me give you a quick example...
While corn ethanol was the passing fancy of Capitol Hill last year, we were steering our members AWAY from the corn catastrophe - and into a Brazilian "sugar-based" biofuel company that delivered gains in excess of 52%.
Take a look...
And here's another one...
While the U.S. wind energy market is only now starting to heat up (especially with T. Boone Pickens building a 3 gigawatt wind farm in Texas), our top international wind play has delivered gains in excess of 124% - in less than a year.
Of course, this kind of action is nothing new for Green Chip International members.
You see, for the past two years, we've essentially created a kind of "members-only" renewable energy hedge fund - quietly capitalizing on the international green market, but without the high risk and excessive fees typically associated with hedge funds.
Here's what I mean...
Each of the companies in the Green Chip International portfolio is a world leader in the sector it represents...each a 'household brand' outside of the U.S.
I'm talking about long plays... companies with high liquidity, exceptional earnings and nowhere to run but up. And best of all, these stocks maintain a very lucrative hedge against the volatile dollar.
Let's face it... While many domestic companies in the green space can often get held back by slow speed to market and legislative hurdles, these international outfits move quickly, precisely, and with fewer obstacles holding them back.
That's really what makes most of these easy double and triple-baggers.
To be sure, Green Chip International covers all bases when it comes to renewable energy... from solar, geothermal, and wind to biofuels and Plug-in Hybrid Electric (PHEV) Vehicles.
It's why our flagship Green Chip Stocks letter is widely regarded as the industry pioneer and leader in the green space.
But bottom line: It's always the money trail that we follow.
And in the case of renewable energy - that trail has led us all over the world.
In fact, in just the past two years we've conducted research trips to:
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