Friday, May 22, 2009

Profit from the Million Dollar Blueprint

In all my years in this business, I have never seen anyone do this...

My friend and colleague, Christopher Ruddy, is apparently onto something BIG. So big that he's actually taken $1 million dollars of his own money and put it 'on the line' to help you amass serious wealth.

It sounded crazy to me at first, but then I read the report below. And trust me... This is one you don't want to miss.

Tired of Being Bullied By Wall Street?

Angry as Your Nest Egg Disappears and You Feel Helpless?

Today you say, "Enough Is Enough!"

You Can Join Me in Turning the Tables on Washington and Wall Street and Once Again Unlock Immense Prosperity as You Grow Your Wealth!

To accomplish this bold mission . . .

"I'm Pledging $1 Million of My Own Money to Rescue Your Wealth!"

I'm Taking Cash Directly Out of My Company's Bank Account to Give You an Opportunity to Profit Wildly!
 (Don't Worry . . . I'll Be Just Fine)

To Share My Blueprint for Wealth, You Must Enroll Before May 20th at 11:59 PM!

What would you do if I walked up and handed you a check for a million dollars? 

Instantly giving you a 7-figure financial cushion.

You could blow it on exotic cars . . . a mansion . . . or maybe on some worthless extravagance.

Or you could take steps to turn that million into an even larger pile of cash? 

The kind of money that will help protect you, your family, and the generations that follow.

From the coming Obama inflation nightmare.

Today you can take steps to begin to make your million-dollar daydream become a reality. Today your financial future is once again in your own hands and not those of Wall Street or Washington.

Today, you can take back your piece of the American Dream.

I believe so strongly in this mission — this may shock you — I'm going to put $1 million dollars of my own money "on the line" to do it!

Are you excited? You should be . . . I am!

Maybe suspicious?  Good!

That shows you are very intelligent.

Let me walk you through what could be a very lucrative opportunity for you. 

Although every investment contains some level of risk . . . I can assure you, I'm going to remove as much of it as possible from this proposition.

I think my million dollar stake is a pretty telling statement about my belief in the confidence of this venture.

My $1 million initiative was made to help investors like you succeed — so I've built in three safety nets to protect you.

But first, let me tell you what I am doing.

I have placed a massive amount of cash — $1 million to be exact — in a TD Ameritrade brokerage account.

I aim to use this money to create a great deal of wealth for myself. 

And here's what I will do for you: you will be given the opportunity to grow your own wealth — as I grow mine.

And, I'm going to be 100% upfront and transparent about how I do it.

Not with some fly-by-night, financial "secret" . . .

I won't play Russian Roulette with this large sum of money . . .

I will be implementing a proprietary investment strategy my Chief Financial Analyst has developed over the last 22 years to grow this $1 million safely . . . easily . . . and most importantly — MASSIVELY!

Our goal is bold: I'm aiming for a 50% to 70% return in the next 12 months!

As you can see, I'm not making some B.S., crazy claim.  I'm a shrewd businessman . . . I'm not a big dream seller, a day-trader or a gambler. And I think get rich-quick schemes are despicable.

So that's why I'm putting my own money on the line . . . because I'm quite confident this solution I'm presenting with you today is phenomenal.

I am calling this remarkable program, which I am sharing with you . . . Your Million Dollar Secret Code.

The moneymaking method behind Your Million Dollar Secret Code and this potentially phenomenal profit opportunity . . . is called the Stock Timing Axis.

It predicts where the markets are headed over the next 12 months . . . it dives into the sector with the most opportunity . . . then it determines the stock ripe to explode with profits . . . and finally, it sets off an alarm at the right moment when to buy and sell that stock.

And right now the Stock Timing Axis is predicting an aggressive, but very temporary bull run for the next 12 to 18 months.

An Actual Internal Email, I Received on April 2nd, From My Private Financial Weapon David Frazier!
Time To Put Him to Work for YOU!

As someone who is invested heavily in the markets, I have relied on David Frazier's investment advice to continually grow my wealth.  This is why I'm constantly asking him to find me stocks primed for massive growth.

So let's look at how those stocks have performed as of May 7th (a little over a month later from receiving this email).

Not one loser in the bunch and 2 massive wins. 

And this is only in a month's time!  Would you like to add these types of gains to your portfolio right now?
Reserve your charter membership spot today!

-Christopher Ruddy
CEO & Editor
Newsmax & MoneyNews

Battle-Tested and Perfected. It's Like a Crystal Ball for Profits . . .

In fact if you back test it over the last 39 years . . . you'll see the Stock Timing Axis is accurate at predicting every market swing within two months. I can't speak for you . . . but I consider that quite accurate.

By tapping into Your Million Dollar Secret Code — and its proprietary Stock Timing Axis, you are going to get an opportunity to implement an incredibly predictable and profitable strategy.

And this will obviously help alleviate risk.  Otherwise I wouldn't be putting $1 million of my own money into it.

In fact, last year the Stock Timing Axis' beat 99.7% of the 5,218 equity mutual funds rated by Morningstar.*

But it doesn't just succeed in a down economy like we've had recently . . . it can thrive in all market conditions. 

Be it raging bull or a nasty bear.

During our last serious bull run, a small fraternity of investors who were smart enough to hold these positions, had an opportunity to experience incredible profits like:

1,721% rise in Intuitive Surgical (a leader in robotic surgery). That’s like turning every $5,000 into $91,050!

472% rise in Baidu in less than a year (the Chinese Google). Each $10,000 invested would have become $57,200 with this gain.

323% rise in Taser in four months (anybody who has seen a cop show knows what Taser produces) . . . Investing $25,000 in this stock would’ve given you $105,750 at this return.

300% rise in XM Satellite Radio over four months (the name says it all). If you were fortunate enough to invest $50,000 in this stock you would have made $200,000.

290% rise in TIVO in around 10 months (you may be recording your favorite shows with it right now). Your $100,000 investment would have become $390,000 if you captured this gain.

The five stocks above rose to the massive levels . . . creating life-changing returns for the investors fortunate enough to be holding these positions.

And that's just a quick snapshot of a few of the significant swell of winners . . . I could go on and on.

The big gains time and time again during bull runs, as well as last year's incredible track record during a severe economic downturn, are exactly why I'm putting $1 million dollars of my own money into profiting from the Stock Timing Axis.

I can't imagine how I can express my confidence in this strategy any clearer than that. 

Are your brokers or money mangers willing to put their own money "on the line" into the recommendations they give for your investments?

That's really more of a rhetorical question . . . we both already know the answer to that one.

I'm personally using this strategy right now to build my wealth and it would be a wise decision if you put Your Million Dollar Secret Code to work for you as well. Sign Up Today!

(Spoiler Alert: I'm also willing to put a triple-guarantee on your subscription of Your Million Dollar Secret over the next year, which means your subscription will be virtually risk-free . . . more on that later.)

So how is Your Million Dollar Secret Code and its Stock Timing Axis going to help YOU?

I'm going to leverage its power — taking my $1 million pile of cash and moving it into winning stocks. 

But I'm also going to unlock the door and leave it wide open so I can share with you the exact stock recommendations I will trade on — so that we can share in the success of Your Million Dollar Secret Code.  Your portfolio can then bear the exact same fruits of success.

In fact, in a little while, I'll tell you how to get these million dollar picks . . . 100% for free.

I believe there is virtually no limit to the amount of wealth we are going to begin achieving together today.

The Time Has Come . . .

I can promise you that some very powerful people, in very high up places will be angry that I am putting this money up to help you get rich.

They've been playing their secret games in $100 cigar smoke-filled, backrooms on Wall Street . . . manipulating the rules for their own benefit. 

They want investors to remain suckers. They want to continue to reap huge fees as your wealth declines!

They will hate Your Million Dollar Secret Code — because it empowers you . . .  it allows you to manage your OWN money like the pros do . . .  not only saving yourself huge "money management" fees . . . but helping you grow your money without insider games.

The Wall Street insiders and their political minions in Washington treat your nest egg and life savings like they were $5 chips you would put on a risky bet at a Vegas craps table . . . just for fun.

It's not just something of movie lore.  These types of shenanigans happen daily. And this secret group keeps making a great deal of money while you are left in shambles.

No one is bailing you out when you lose your job . . . or can't meet your mortgage payment . . . or you lose 50% of your portfolio wealth overnight . . . but members of the inside club land on their feet no matter what . . . easily getting Washington to fork over trillions without practically ANY strings attached and without almost ANY oversight.

And these trillions are YOUR money . . .  which they will soon manipulate to make even more worthless as they inflate the currency.

These insiders look at each of you as sheep.  And they maneuver "the herd" so to speak in directions that allow them to profit while you suffer.

If you are insulted or angry . . . you should be. Any other emotion isn't logical.

Trust me I know . . . I've been unraveling their scams one after another since I've been in the publishing business.

Aren't you tired of someone stacking the deck against you?

Stealing the control of your financial future right out from underneath you?

Wouldn't you like the freedom to become as wealthy as you choose to be?

This is what I'm offering today.

What my million-dollar program means to this secret group of wealth mongers is that their monopoly on taking your profits is over. 

My financial brain trust, led by the man you'll meet in a few moments, has seen and conquered all of their tricks and ploys.  With his guidance you can now turn the tables on them while you amass serious wealth.

Tough luck for them!  Good luck for you!

It's payback time!

You are going to join their very exclusive club and bank more than your fair share.

And I'm going to get you access behind their red velvet rope of profits.  I promise you that.

Somebody needs to stand up to these guys. And I have the power to do it . . .

And with me on your side, now you do too.

So Who Am I Anyway? And Why Am I Being So Darn Generous?

My name is Christopher Ruddy.

I'm a graduate of the prestigious London School of Economics and I'm an award-winning, investigative journalist.

I've made a career of uncovering the truth in politics and in the financial markets.

I've reported on abuses in government  as well as protecting American wealth . . . My publications predicted the bursting of the housing bubble as far back as 2005 and I warned of the financial markets' collapse in 2007.

I've been there every step of the way defending Americans.

And I made my own wealth when I founded one of the nation's most influential Web and media outlets in the world . . . Newsmax.com. 

Because we are unafraid to tell the truth, in a short time our financial Web outlet, Moneynews.com has become one of the top sources for prudent, unbiased financial news and advice.

I'm proud to say I am a self-made man.  I didn't take any free rides. I didn't ask for any "bailouts" as I built my business. And I never got a bonus like the folks on Wall Street have . . . as they lost other people's fortunes.

Frankly, I'm angry when I hear friends and my fellow Americans tell how their wealth has been decimated.

Like you, I've earned everything I've achieved in life. That's why I want to give you the same opportunity today. 

I want to give you the helping hand you deserve for your years of hard work.

Which is why my focus now is on giving average Americans the power to profit safely from the stock market, while reducing the types of risk that have almost buried our nation with the grave economic conditions we now face.

And I have a proven track record of success in this regard. Take a look at how the recommendations in my flagship financial publication have consistently outperformed the markets over the years.

But I'm not happy just simply beating the indexes with this serious amount of money I'm investing.  I want to make a ton of cash.  And I want to change your life.

With this million dollars . . . you all get your chance at the American Dream that's been taken from you.

But to answer that second question . . .

"Why am I being so darn generous?" I never said I was actually being generous with my money.

I am promising to be fair, very fair by sharing the knowledge I will use to unlock great profits.

The success I've had is due to calculated business decisions, not reckless spending or risks . . . I'm not a senator or congressman after all!

My aim with this $1 million is to grow it 2 . . . 3 . . . 5, even 10 times over . . . and my Chief Financial Analyst is confident that a 50% to 70% return on it is quite possible in the next year alone due to a very temporary and swift bull run, that he and I believe is in our very near future.

Conditions EXACTLY like the ones that brought about the massive gains I described earlier in this letter.

I'm confident this is going to make me a great deal of money. And when you get access to the recommendations I'm making with this 7-figure sum, your portfolio will have an opportunity to grow at the same pace mine does.

And I'm willing to guarantee your subscription three times over . . . (don't worry, I'll expand on that in a minute)

I realize I don't have to be so gracious in revealing what could be some of the most profitable stock recommendations I'll see in my lifetime. I could just keep them all to myself.

But . . .

I Couldn't Stand Back on the Sidelines Any Longer . . .

I'm tired of watching each American's life savings disappear from our "Corporate Welfare System" or one Wall Street Scam after another.

It all stops now . . .

And although Your Million Dollar Secret Code's Stock Timing Axis is an immensely complicated strategy . . . you don't need a fancy degree in economics when using it to make big money, you don't even need a college degree!

Because you'll get the benefit of my Chief Financial Analyst's research.

He'll do all the hard work and simplify the complex data.

He will offer you a simple solution, one that anybody can take advantage of.

With my help, you are going to have the opportunity to reclaim each dollar you've lost in your 401k, retirement savings, and investments. Click here to reserve your spot! 

How Do You Become a Millionaire? First . . . Get a Million Dollars!

The game plan for this million dollars isn't complicated.  Actually, it's quite simple.

As I mentioned earlier, I'm going to invest it into what I believe is going to be a feverish 12 to18 month bull market.

Over the last year the S&P 500 has dropped by as much as 54% . . . the Nasdaq by 51% . . . and the Dow Jones by 50%. 

And some global markets have collapsed to catastrophic levels of 70% or more!

Now, my financial brain trust's economic indicators suggest a feverish rebound in these markets. The reasons are quite simple.  I'll lay them out for you in their successive order.

Step 1: Massive market downturns have caused a mass exodus of investor money out of the markets and into so called "safer" avenues. Many of these safe places are cash, T-bills, CDs, money markets, and even gold.

Step 2: With most of the liquid cash on the sidelines — it totals over $5 trillion now — stocks basically have hit their bottom . . . as most of the "sellers" have cashed out. (Of course, we will always see ups and downs on breaking news and current events, but I believe the worst is behind us FOR NOW)

Step 3: The government panics and tries to "prime" the economic pump by massive spending — over the past 12 months we have witnessed the greatest federal spending spree in all of history, in all of WORLD history. And from this . . . massive debt is created. Regardless of your political beliefs, this is an indisputable fact.

Step 4: Foreign countries aren't lending to us as freely as they used to. Even China is fed up and canceling its "credit card" by almost stopping its habit of buying our debt.

Step 5: This causes the government to have to "print" money to pay its obligations. Though today money is now created "digitally" and transferred from the Federal Reserve to the U.S. Treasury. It seems almost like magic, but it's a black magic.

Step 6: For a while, the money government is pouring into the economy begins to work. People start spending again  . . .  and all those investors who are in cash like CDs and money markets paying less than 1% become desperate . . .  many people need income and just can't afford to live off their "safe investments."

Step 7: Positive economic news — a mirage created by massive government spending — makes investors think they can come out of hiding. First they start investing in bonds, dividend stocks, blue chips. We are already beginning to see this trend.

Step 8: The market begins rising. Slowly at first, then it roars. The good old days are back. It's a bull! This is what market veterans call a sucker's rally. These sucker rallies can be incredible — sometimes a 100% rebound of the market's loss plus some.

Step 9: Then WHAM! . . . inflation strikes from all of that spending and money creation. Investors realize they've been had . . .

And once Step 7 happens (which I believe will start very soon) . . . you can expect to start to see certain sectors take off. We know for example the Dow is up off its low as investors have decided to take the risk and invest in blue chip stocks.

We've already begun to see the S&P begin to rise. But, it's just getting started. I can hear hoof beats of a possible stampede.

Creating the perfect opportunity for what I'm confident will be massive profits if you know how to find the right stocks to get into . . . there are 12,000 of them after all, and every one of them is not going to prosper.

My Chief Financial Analyst (who you'll meet in a minute) is going to implement his Stock Timing Axis strategy exclusively for subscribers to Your Million Dollar Secret Code to find the maximum profit plays . . . taking advantage of any market surge, to give me fortuitous recommendations for the million dollar portfolio, and you will get unfettered access to those same picks!

I'm so confident that these stock plays are going to skyrocket that I'm willing to put such an incredible sum of my own money on the line. 

If these so-called "financial gurus" on TV and in some of your favorite publications are so proud of their phony-stock prophecies . . . why don't they invest in them? Even more importantly, why don't your stock brokers or money managers invest in the same stocks they recommend for you?

The answer to that question is quite simple.

They are . . .

Jacks of One Trade Masters of Nothing . . .

And that one trade they are good at is ego-stroking, making you feel good — as you listen to their nonsense and pay their fees.

I love when I hear so-called investing experts boast about their huge gains in 2008 when the market was in a downfall. 

That's great and all . . . but what were these financial wizards doing during a bull market?  Probably losing people tons of money.

But what did they do in 2007?  How about the bull run up until 2006? 

You'll probably hear silence and crickets in the background . . . maybe tumbleweeds will blow across in front of them while they figure out how to answer that question.

Sure, they'll get on TV and boast and fluff their feathers like they are the prize peacocks.  They may even try bragging to you about only losing 5% last year when the S&P lost as much as 54%.

So you paid them to lose you less money?  Does that make even one iota of sense to you?

If you are reading this letter with a goal of losing less than the Dow, S&P, or Nasdaq . . . I suggest we part ways now.  I'm only looking for winners to join me. 

If you want to make a serious amount of money in the next 12-18 months you'll want to be following the path of the ACTUAL million dollars I'm investing in what I'm confident are safe, and soon to be thriving stock picks. Click here to lock in your spot!

This isn't Monopoly Money I'm Playing With . . . Although When You Decide to Pass the Point of  "GO" You Could Collect a Boatload!

I assure you this is no trick . . . I have no ulterior motives. 

In fact after I introduce you to the man I'm putting in charge of growing this wealth, and I take a little while to explain how he is going to go about doing it . . .

I'll then show you how to get access to the same kinds of gains as me without having to put up a serious sum of money.

Actually, I'll show you how you don't even have to invest a penny in these amazing stocks to still see the same percentage gains.

And besides dedicating a 7-figure sum of my own money . . . as a form of showing you my level of commitment to this initiative . . .

I'm going to reveal another weapon I'm going to let you use.  This one will virtually ensure you have greater success than me from this million dollars.

It'll seem almost absurd that I'm doing it at first, but I believe it's necessary, so we can bring down all walls of suspicion you may have. 

But first . . .

Let's Meet the Man . . .Who's Going to Pilot Your Million Dollar Secret Code On a Path to Reviving Your Wealth!

His name is David Frazier, and if you've never heard of him, that means I must be doing a good job of keeping him under wraps.

You see, I intentionally keep him out of the mainstream media . . .

Sure I could dress him up in a suit and prance him around on CNBC . . .have him give out a bunch of half-researched picks for a quick sound byte . . . I 100% have the connections to do it.

But I don't want his reputation tarnished by putting him on a network so incapable of predicting the economic calamites that have befallen our country.

Where were these "TV Personalities" when Americans needed to be warned about the housing and financial market collapses?

The exact same catastrophes David and I were warning investors about in 2005 and 2007, respectively . . . well before the events unfolded.

They were too busy getting primped with makeup in green rooms for an ego-boosting TV appearance . . . when they should've been discovering dangers to your investments and warning you about them.

Besides, if David is prepping and practicing for a TV interview . . . he's not doing the necessary analysis on the markets . . . and he's not making me money.  And that would now mean he's not making you money.

What good is that to you? 

Until now, he's served as a private investment weapon for me and a few lucky investors who have been following his recommendations.

If you are already one of them . . . smart move.  If not . . . here's your chance to put him to work.

So let's just agree to keep him our little secret.

David's career has spanned the world of finance and the markets. 

He was critical to the success of a large mutual fund . . .

He's worked closely alongside William O'Neil . . . one of the world's greatest stock pickers . . . and the publisher of Investor's Business Daily.

He's been a business Analyst for Dun and Bradstreet . . .

A consultant for an investment banking firm handling large mergers and acquisitions for start up companies . . .

And for the last few years he's overseen the most prudent and profitable financial services at Newsmax including the ETF Strategist and the Financial Intelligence Report.

With scientific precision he's accurately predicted exactly where our market was headed, bringing his subscribers safety and one big gain after another.

In fact, last year the Stock Timing Axis' beat 99.7% of the 5,218 equity mutual funds rated by Morningstar.*

So while most were helpless as the Dow, Nasdaq, and S&P 500 took a nosedive . . . and your broker was telling you to keep clinging to those poison "buy and hold" stocks . . . David was making his subscribers (and me) serious money.

But when a bull market rears its head, he's ready to make even greater gains . . .

You Already Know . . .

About the 1,721% rise in Intuitive Surgical . . . 472% rise in Baidu . . . 323% rise in Taser in 4 months . . . 300% rise in XM Satellite Radio over 4 months . . . and a 290% rise in TIVO in around 10 months. All of these stocks soared to almost unheard of levels.

They'd be the equivalent of hitting homeruns in baseball.

But David is also hitting for a safe average with winners like:

An 87.5% gain in Outdoor Channel Holdings in less than 3 months!

A 75% gain in Faro Technologies in less than 4 months!

A 70.3% gain in Vodavi Technology!

A 69% gain in Pixelworks in less than 5 months!

A 58.2% gain in InVision Technologies in less than 3 months!

A 55.3% gain in U.S. Laboratories in less than 5 months!

A simple $5,000 investment in these plays would yield you a total paycheck of . . . $50,765 from these "hitting for batting average" stocks.

These are the types of gains most only dream of. And others risk their money on risky investments like options or futures to get. But you'll get an opportunity to make this kind of money on simple stock recommendations.

And you aren't exactly buying and holding these companies . . . but you aren't day trading either.

The Stock Timing Axis is nimble and adjusts to the environment. It's quick when it needs to be . . . it's longer term when the indicators say that's where the bigger profits are.

That's how Wall Street titans make their money. They mix in the so-called home runs, with the safer picks.  And they yield huge results.

This is what David will be aiming for with his Stock Timing Axis formula.

And now he's going to implement this bold and profitable investment philosophy into my million-dollar stake.

Wouldn't you like a piece of this action?

This is How You Could Make a Million Dollars From My Million Dollars . . .

Starting on May 21st, David Frazier is going to release his Stock Timing Axis on my million dollars. 

This complex formula consists of 5 parts . . . I apologize in advance if I go into almost too much detail in this section, but I have a lot of money on the line here and any smart businessman believes in being comprehensive.

And if you are going to follow this strategy . . . you should know exactly what comprises it.

Step 1:

David begins with Macro Forecasting Analysis . . . he uses a custom formula he has created that combines 13 technical and sentiment indicators with 100 financial and economic indicators. Weighing this formula with current political and demographic trends provides the greatest possibility for success.  

It's that good.

David's Macro Forecasting analyzes where our market is heading over the next 6, 12, and 18 months and what sectors are primed to take advantage of financial upturns.

After the Macro Forecasting Analysis is complete, David implements Sector Rotation Analysis. 

Step 2:

In this step, David looks for sectors that are on the rise.  Has the healthcare or technology sector been beaten down, but slowly gaining strength?  If so, and it matches what his Macro Forecasting Analysis formula indicates . . . David keeps moving through his Stock Timing Axis steps.

Step 3:

David performs company analysis.  Since he's identified a hot sector, he uses this step to find a company on the brink of surging.  David is looking for a company with only a few competitors and a relatively new product or service with growing demand. 

In fact, David only looks at companies that have been public more than 2 years and less than 10.  Less than 2 years is too little time to get a good idea of a company's financial wherewithal.  Over 10 years public, and in most cases, the days of its biggest growth are behind it.

The company must have low debt levels and a good deal of cash on hand.  This helps a company fend off a down economy and even buy up competitors on a market upswing.

Step 4:

So now that a potential company has been located, David moves on to Stock Analysis.

When doing stock analysis, David looks at institutional buying.  Institutions drive stock price.  But David doesn't get in when 300 institutions own a stock.  All of the growth is gone at that point . . . all you can do is lose money.

Instead David looks for a stock that has been trending upwards with regard to big institutions buying into it.  If one month there are 2 institutions buying it . . . the next 3 . . . the next 5 . . . this is a green light that the stock is going to grow in demand very very soon.

To verify this, David employs an investment ratio that is generally kept under lock and key.

The PE Ratio is For Lazy . . .and Unsuccessful Investors!

Sure it's a staple of your average investor . . . but how have "average investors" made out lately?

You can't judge a stock's true value with a Price/Earnings ratio. It's why the staple of the fourth step of David's Stock Timing Axis is the PEG ratio. It takes your generic PE ratio and supercharges it by factoring in growth (the "G"). 

A stock that looks scary from a PE ratio standpoint can look like an absolute can't miss when you actually factor in its growth. This is the ratio the real money makers use. And that's why you don't hear about it on TV. 

It's the Secret Code the "inner circle of wealth" doesn't want you knowing about. 

And even with all of these steps, David is still not done with his analysis.

Step 5:

The final step of the Stock Timing Axis is finding the right moment to strike (timing).

This is the step that's the difference between a 20% winner and a 120% one. David uses a custom formula that helps determine when the price volume action is at the exact moment for maximum gains with minimized risk.

And after all these steps have all lined up just perfectly . . . a stock is worth of a portion of this million dollars.

It seems exhausting doesn't it? But it's absolutely necessary. 

It allows David to focus on the safest stocks with the most profit potential.

And I just painted the broad strokes to you. To get into great detail would take all day. Your broker doesn't have time to do this kind of research. He's too busy on the phone selling the stocks his company orders him to.

At any given time, out of the 12,000 stocks that are traded . . . the first four steps of this formula will root out 11,965 of them.

This leaves about 35 stocks in David's line of site (those 35 of course are changing on day to day basis).

Once a stock lines up perfectly in Step five . . . his Stock Timing Axis alerts him that it's time to get in and he'll tell me to invest.

David Frazier's incredible picks, will be the same ones that I will invest my own money into — the ones that make up Your Million Dollar Secret Code.  And the same picks from which you can profit wildly!

Which is why I'm formally inviting you right now to join me as a charter member in this potentially lucrative initiative.

Reserve Your Charter Membership Here!

You Are Probably Asking Right Now . . ."What's the Catch?"

There isn't one. 

It's very simple.  I'm putting up a million dollars of my own personal wealth into a real portfolio — Your Million Dollar Secret Code. 

And as David Frazier implements his Stock Timing Axis he will enable me to grow my wealth by leaps and bounds.

David believes he can bring a 50%-70% plus return over the next 12 months to this million dollars and you can get access to the exact same recommendations and will make the exact same return I do.

For every 15 stock recommendations David makes in the next year, he believes he'll have:

3 Losers — No getting around that.

9 Stocks with the potential for a 45% return in about 6 months.

2 Stocks with the opportunity to double in the next year.

1 Stock David's research shows could at least triple in value over the next 18 months.

And I will invest $1 million dollars — of my own money — into these recommendations.

And you are invited to join me in this profit taking by joining Your Million Dollar Secret Code. 

It goes without saying that no investment is completely void of risk, but I believe with David's Stock Timing Axis strategy, you can drastically reduce your exposure.

If I wasn't so sure of that, I wouldn't be putting this 7-figure sum "on the line."

And I'm going to make access to this strategy very cost effective for you regardless of your budget, I promise.

This is How I'll Be Avoiding Unnecessary Risk With These Million Dollar Plays . . .

The problem the average investor has, is an emotional commitment to investments.

They don't want to lose money . . .nobody wants to lose money. And for this reason many people hold on to stocks too long, hoping for that "rise from the ashes" moment when a company recovers completely. 

Fortunes are lost that way.

We won't be rationalizing stock losses . . . we won't be bringing any emotion to these picks. 

The days of "buy and hold" are over — You won't be cherishing stocks like they are Picassos you'd hang on your wall. Even Warren Buffett admits it simply doesn't work anymore.

We are taking no prisoners . . . we are making no friends. And we are setting strict stop losses . . . if a stock hits a -16% mark . . . it's gone . . . David is selling it. On to the next play.

This will help us minimize risk but leave us open for maximum gains. 

Speaking of maximum gains . . . I mentioned earlier that I had a method to basically ensure you get access to these stock recommendations at a better price than I will.

And I think when I reveal this . . . you'll see there really is no way I have any tricks up my sleeve.

Here's the Real Deal . . .I'm Opening Up My Investment Portfolio to You 48 Hours Before I Act . . .

It's exactly what it sounds like.

So say David recommends you buy a stock at 2p.m. on a Tuesday . . . you can get that stock right then. I, on the other hand, will wait until exactly 2p.m. that Thursday to get the exact same stock.

That's how confident I am in these stock picks . . . I absolutely realize that most likely when I can actually purchase the stock it will have risen from the price that you can get it at . . . but the overall profit potential is so big, there will be enough gains for me too.

This 48-hour caveat for you is exactly why I'm limiting membership. I can't have too many people in Your Million Dollar Secret Code . . . otherwise I couldn't get into these plays at a reasonable price. So I suggest if you are interested in this proposition that you don't delay in signing-up today.

So let's talk dollars and see if it makes sense . . .

We are now at the part of our business relationship where we start to talk about your contribution. 

And I plan on being overly reasonable because I want this to be a win-win offer.

In fact, I believe I'll make enough from David's recommendations growing my portfolio that your expense for this service does not need to be significant.

So how many recommendations can you expect a year?

David Frazier won't just be "trading to trade." That's an excellent way for you to go broke quick.

He's not finding stocks for this million dollars just so he could make a wall portrait of trade tickets for me to look at all day.

But it's safe to say David will make around 36 stock recommendations over the course of the year.

So say David delivers you about 36 platinum stock plays in the next year. The exact same recommendations I'll be investing in with my 7-figure personal wealth.  

If David brings you a 50-70% return in the next year on your money . . . would you be willing to pay $139 a pick? For an annual cost of $5,000.

If you have a million dollars to devote to this venture . . . absolutely . . . that's only a drop in the bucket.

If you have serious wealth to invest, you'd be paying well over that amount in fees alone, to a broker or money manager. Many mutual funds charge you about 2% of your investment . . . a hedge fund charges not only that 2% fee, but 20% of profits as well.

So by managing your own money with David's recommendations you are already saving yourself a ton — while you take back control of your financial destiny at the same time.

But I didn't create Your Million Dollar Code just to make the rich even richer. 

I want all common-sense minded Americans, who want to take back control of their piece of the American Dream that Wall Street and Washington DC have robbed you of over the last couple of years to profit from this movement. 

So you can join my inner circle for a fraction of that $5,000 figure.

Before we delve further into the membership fee, I want to discuss exactly what you'll be getting when you sign up for Your Million Dollar Secret Code.


 

 

1) About 36 Massive Profit/Minimum Risk Plays — These will be a mix of stocks that David Frazier's Stock Timing Axis predicts will make huge gains anywhere from 2-12 months after he initially recommends them.  A couple here and there may even be 18-month holds.  Even though David believes we are going to enter a serious bull run, if an opportunity arises to play the downside of a stock, he will make that play as well. You will be given suggestions on exactly what to buy, at what price, and how much.  David Frazier will provide you with all of the research and analysis behind each recommendation. And you will get a 48-hour head start on me, before I can buy the exact same stock recommendations.

You will be given simple-to-follow instructions as well as all of the research behind David's recommendation. (That's a $5,000 value.)

 

2) Trade Alerts —The moment David believes one of his recommendations reaches the right moment to sell for maximum gains or when that occasion comes that a position goes against us, you will immediately be emailed with specific instructions.
(That's a $995 value)

 

3) Phone Alerts — I've authorized the option to have David Frazier's trade alerts sent to your phone.  Time is money and I want to make sure you are given each recommendation in the quickest possible fashion.  This will augment your email alerts.
(That's a $199 value)

 

4) Password Protected Web Site —When you sign up, you will be given immediate access to Your Million Dollar Secret Code's security encrypted website.  It's here where David will give you member's-only Videos, Podcasts, and Articles that you will find nowhere else. This is a very powerful library of investment resources. (That's a $295 Value)

 

5) Weekly Commentary —Each week David Frazier will send you a wrap up of how the portfolio is doing and offer his gyroscope on the current market.  This weekly state of the portfolio address is critical to keep tracking of your wealth. (That's a $99 Value)

 

6) 24/7 Flash Alerts —The markets never sleep.  An event that occurs in Singapore may affect your investments here and David Frazier will always keep you "in the know" about these events with these emails. (That's a $99 Value)

 

. . .and you aren't going to pay even a fraction of that.  I've ruled out asking you to pay a $5,000 membership fee for these picks already.

So what is this going to cost YOU?

When taking into account everything you are receiving above, is $55 a recommendation a fair price? That would bring your charter membership fee to only $1,995.

And if I ever open up this opportunity to investors again . . . that's exactly what I'm going to be charging. But since you are being given the opportunity to become a charter member, you are getting an even sweeter deal than that.

But before we get into the final price . . . I have 3 gifts for you.

 

Platinum Gift #1: A One-Year Complimentary Membership to Financial Intelligence Report — Over the years while the major indexes were plummeting, my flagship financial newsletter was bringing investors a 30% return. In each monthly edition, you will be emailed smart and sensible investments to protect your money.  A $99 Value . . .
Yours FREE!

 

Platinum Gift #2: The Tao of Warren Buffett:  This critical book will help guide you to billionaire wealth and enlightened business management. You'll learn Buffett's key Taoism: "Why do smart Americans take their investment advice from a guy who takes the subway to Wall Street?" An $18 Value . . . Yours FREE!

 

Platinum Gift #3: Money Mischief by Milton Friedman: This book was absolutely prophetic.  Written almost two decades ago it details exactly what Barack Obama is doing to inflate the currency and the dangers that lay ahead.  A $14 Value . . . Yours FREE!

These 3 additional gifts bring your total Charter Membership package to Your Million Dollar Secret Code to $6,818 . . .

And I'm going to take an additional $700 off the regular membership rate.

So you will only be asked to contribute $1,295 to join the inner circle of Your Million Dollar Secret Code.  That's roughly a measly $36 per recommendation.

You will get single stock recommendations from David Frazier that should pay off many multiples of the total membership fee.  So it is quite a deal.

About 1/772nd the Risk . . . The Exact Same Reward!

I'm putting $1,000,000 into these recommendations as well as the investment analysis muscle of David Frazier (and I can assure you he is nowhere near cheap) . . . I'm only asking for you to put in $1,295 to get access to get his picks. 

If our portfolio makes 25%...you'll have an opportunity to make 25% . . . if it makes 100% . . . you'll have an opportunity to make 100%.  Pretty simple.

Did I Say 1/772nd the Risk? I Meant Your Subscription Literally Carries ZERO Risk!


Because I know in today's economy, each dime you have should be heavily scrutinized before you spend it, I'm including a 60 day 100% refund guarantee. Test-drive David Frazier's recommendations first . . . let us earn your trust!

So you can actually get a 2-month free peek at my investments. You can trade them and then on day 59, get 100% of your money in our project back.  But I'll take it a step further.

You don't even have to put one dime into our recommendations for the first month (even first two months if that's what you are more comfortable with). 

By not investing any money in the recommendations at first, you are eliminating all risk from the equation until you are comfortable. 

This means at the end of two months you don't have to make any trades . . .  just watch us . . . and if you're not satisfied you get 100% of your money back no questions asked.

Remember, most brokerage houses or online investment service will allow you to do what's called "paper trading."  Most are familiar with this.  "Paper trading" simply means using play money to make actual trades. 

After all of the shady practices of Wall Street, you should do no less than make David and I earn your trust.  

For two months you can make "virtual gains" on David Frazier's trades without investing one penny.

If on Day 59 of "Paper Trading" you don't think there is enough profit potential for you . . . let me know . . . a 100% refund is yours. 

The Third Guarantee is a Bit Original . . .

I call it the "Index Buster" Guarantee.  As I've mentioned in this email . . . and I'm sure you were probably well aware of it already, the S&P 500 dropped as much as 54% in the last year.

David Frazier's Stock Timing Axis is predicting this index is set to explode upwards in the next year. And I've already shown how David Frazier knows how to foresee a market movement.

Well if Your Million Dollar Secret Code does not outperform the S&P 500 during your first year of membership . . . call me up.  You'll get another year on the house.  Another 365 days of max profit plays . . . for FREE!

Just so I'm blatantly clear . . . if the S&P 500 rises by 54% in the next year, but David only makes you 53.9% . . . you will get another year for FREE! 

So just for a good laugh . . . call up your broker or money manager right after you sign-up today. 

Ask a very simple question . . . "Will you only charge me $36 a recommendation . . . invest your own money in said recommendations . . . but give me a 48 hour head start before you do . . . then give me a 100% risk free guarantee . . .and actually work for free for me for a year if you are wrong?"

You won't need a stopwatch to clock how fast you'll hear a dial tone . . . but that is exactly what you are being offered today with Your Million Dollar Secret Code.

So let's do a quick wrap of everything you are getting.

1) About 36 Massive Profit/Minimum Risk Plays (a $5,000 value)

2) Trade Alerts ($995 value)

3) Phone Alerts ($199 value)

4) Password Protected Website ($295 Value)

5) Weekly Commentary ($99 Value)

6) 24/7 Flash Alerts ($99 Value)

7) One Year Membership to Financial Intelligence Report ($99 Value)

8) The Tao of Warren Buffett ($18 Value)

9) Milton Friedman's Money Mischief ($14 Value)

A $6,818 value . . . yours for only $1,295.  If you have any further questions, I've provided a very informative terms of service.

But There's One Last "But" . . .

I'm closing membership applications promptly at 11:59 PM on May 20th.

Once this portfolio goes live on May 21st, I only want those who had the initiative to take action today to profit.  

On Thursday, May 21st, David Frazier will immediately send you two picks that he's tracking now with an opportunity to double in profits in the next year. 

Do you want to begin to rebuild your wealth?  Or would you prefer to say on the sidelines?

If you are a ready to get serious about making money in the next year, make sure to reserve your spot in Your Million Dollar Secret Code. Together we'll recover every penny you've lost while reviving and supercharging your investment portfolio.

 

Decoupling from Reality Best Stocks 2010

The Great Wish across America is to resume the life of comfort-and-convenience that seemed so nirvana-like just a few short years ago, when the very constellations of the heavens might have been renamed after heroic Atlanta realtors and Connecticut hedge fund warriors, and the boomer portfolios groaned with earnings, and millions of graying corporate salary mules dreamed of their approaching retirement to a satori of golf and Viagra, and the interior decorators grew so rich installing granite countertops that they could buy their own houses in the East Hampton, and every microcephalic parking valet in Las Vegas qualified for a bucket full of Ninja mortgages, and Lloyd Blankfein could dream of divorcing his wife to marry his cappuccino machine.

At the moment, there is tremendous hoopla and jubilation over the start-up of so many "shovel-ready" highway projects around America ― as if what we need most are additional circumferential freeways to enhance the Happy Motoring lifestyle. How insane are we? Is this the only thing we know how to do?

I remain confident that the months ahead will introduce the American public and our leaders to a range of horrors that will begin to penetrate our addled collective imagination. We're far from done with the crisis of banking and money and the related fiasco in mortgages ― which translates into the very real situation of many people becoming homeless. It remains to be seen what may happen on the food production scene, but the current severe shortage of capital and the intense droughts shaping up around the world will resolve into a much clearer picture by mid-summer. The price of oil has resumed marching up and has now re-entered a range ($50-plus) that spun the airline industry into bankruptcy last time around. Enough carnage has already occurred on the jobs scene that the next act among many chronically jobless may tilt toward desperation, anger, and violence. The sporting goods shops aro und the nation are already rationing ammunition.

It's not just the stock markets that have decoupled from reality as we enjoy the fragrant vapors of spring ― it's the entire conscious consensus of everybody holding the levers of power and opinion. To put it as simply as possible, we're still sleepwalking into the future.

Bad Collateral

The wishes of the "green shoots and mustard seed" crowd really hinge on whether the various organs of the suburban economy can be jump-started back to life ― the production home-builders, the granite countertop outfitters, the mall and strip-mall gang, the national chain discount retailers, all the people who make Happy Motoring possible from the factory to the showroom, and, of course, the banks who shovel money into these enterprises.

All these organs of our now-former economy are gravely impaired, and a realistic appraisal of them would have to conclude that they've entered the zone of congestive failure. The choice we face really comes down to this: do we put our dwindling resources and "hopes" into resuscitating those dying systems, or do we move forward to the next chapter of American life, cut our losses, and make new arrangements more consistent with the realities on offer from the universe? To take it a step further, can we remain one nation, a common culture, without such a conscious re-purposing of our collective spirit?

The bizarre spectacle being played out right now by President Obama and his team only adds layers of mystery and mystification to this big question. It is so dispiriting to see Mr. Obama's White House mount a campaign to sustain the unsustainable in the economic realm. Everything they've done for four months involving money management and enterprise policy ― from backstopping hopeless banks, to gaming the bankruptcies of the big car companies, to the bungled efforts to prop up artificially-high house prices ― amounts to a gigantic exercise in futility. Worse, it gives off odors of dishonesty or stupidity, since the ominous tendings of our system are so starkly self-evident.

Not least of the problems entailed in all this are the scary political consequences. It's one thing for a business such as a bank to fail; its another thing for the public to lose confidence in banking, or their own currency, or the credibility of all the people who work in banking, or the authority of those charged to regulate these activities, or the courts and their officers who are supposed to adjudicate misconduct in them. When faith in all these things starts to go, all bets are off for even larger social constructs like democracy, justice, and the destiny of a federal republic.

The Obama White House has very quickly painted itself into a corner on these things. The so-called bank "stress test" couldn't have backfired more completely. Rather than bolster confidence in our money system and the people who run it, it only made the system appear more obviously corrupt. It made the Treasury Department (and the White House by extension) look idiotic for concocting it. Worse, the game of allowing the banks to audit themselves, and cook their books under newly jiggered accounting rules, only made them look less sound and trustworthy, and their executives more venal and mendacious. The stress test scam also virtually guaranteed that the banks will not get another dime out of congress ― even while it is common knowledge that they will desperately need quadrillions more dimes in the months ahead.

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Who knows what the point of this ludicrous exercise was? Observers in all corners of the media saw through it, and the public has only been made more cynical, and is now so furious over related stunts like AIG using taxpayer money to pay back swaps bets to Goldman Sachs that there is a whiff of revolution in the American air for the first time, really, since 1861. A lot of reasonable people see a good chance that our society will sink into disorder if these trends continue, and these fears could beat a path into radical politics, even the frightful prospect of coup d'etat ― not something that I advocate, by the way.

The president is playing with fire on all this. The old economy is not going to recover, and so far he has not used his rhetorical talents to articulate what the next economy is likely to be about. It is reasonable to wonder whether he even really has a clear sense of it ― and, based on the fatuous utterances of his economic mandarins like Larry Summers and Austan Goolsby, this team is really behind the curve.

There are plenty of things you can state about the economy past and future with some confidence right now:

Cheap energy is over and our wishes for alt.energy are currently inconsistent with reality, meaning we have to live differently.

We have to downscale and re-localize our major economic activities: food production, commerce and manufacturing, banking, schooling, etc.

We can't hope to have a stable money system unless we allow a workout of unpayable debt to proceed.

Even if we can do this, universal easy credit is a thing of the past. From now on, we have to save for the things we want and run our businesses and households on accounts receivable.

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Major demographic shifts are inevitable as it becomes necessary to let go of suburbia and reactivate our derelict towns and smaller cities (and allow our giant metroplexes to contract).

We have to face the truth that our major social contracts cannot be met, namely the continuation of social security as we know it and probably all pension arrangements. We'll probably have to change household arrangements to make up for these losses.

Health care will have to go through a revolution more comprehensive than just changing how we pay for it. Like everything else, it will have to downscale, re-localize, and become more rigorous.

We're not going to rescue the banks. The collateral for their loans is no good and it will only lose more value. All those tract houses on the cul-de-sacs of America and scattered on the out-parcels of our tragically subdivided farming landscape will only lose value, one way or another, in the years ahead. Right now they're simply losing inflated cash value ― and that has been bad enough to sink the banks. In the months and years ahead, they'll lose their sheer usefulness as the distances once mitigated by cheap gasoline loom larger again, and the jobs vanish and incomes with them, and the supermarket shelves cease to groan with eighty-seven different varieties of flavored coffee creamers, and one-by-one the national chain stores shutter, and the theme parks, and the Nascar ovals, and the malls, and the colossal superfluous cretin-cargo of consumer nonsense that we've bee n daydreaming in gets blown away in a hurricane of change that we were not ready to believe in.

Don't forget: James Howard Kunstler will be at the Whiskey Bar panel discussion along with your Whiskey Bar editor and a host of our regular contributors, including Byron King and Dan Denning.

We'll be celebrating ten years of The Daily Reckoning at this year's Agora Financial Investment Symposium…but we aim to make the Whiskey Bar panel the highlight of the event. We hope you'll be there to help. Click here to confirm your spot.

Lots of great responses today and I weep just a bit because I just don't have room to publish them all. 

Hi Gary-

Like a good scotch, your column just gets better with the passing of time. Count me among those for whom Whiskey & Gunpowder is an eagerly anticipated daily break…whether a columnist resonates with me or not.

Speaking of resonance, you've undoubtedly noticed that whenever a lively discussion with a liberal leads him into a corner from which he has no logical egress, he becomes bellicose, storms away in an indignant huff, and/or resort to hurling non sequitur invectives.  I believe this is a defense against that which their subconscious knows is rational, but their conscious level cannot come to terms.  This is equivalent to a kid putting his fingers in his ears and yelling "la la la" in order to keep some fact at bay.  It isn't always tidy to have your worldview sullied by another.  But better the person who listens, considers and learns...

Straight up, room temperature and with a good cigar…

Thank you. I have indeed noticed that fiscally liberal world-improvers tend to respond to logical arguments about liberty and the state with something along the lines of "you're an awful, selfish meanie who doesn't care about his fellow man."

Despite the truth of this, it does nothing at all to validate theft, redistribution and interventionism.

And while I truly relish the idea of my fellow bipeds getting what they got coming, I adore puppy dogs and wish them only the best. I'm no ogre.

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Dear Gary,

May you drown in uncollected garbage, break your bones from bumpy potholes, catch infectious diseases from no more free public vaccinations, and be surrounded by illiterates who have no free education.  But please don't stop voicing your opinions. They may seem absurd in the 21st century, but they are refreshing and they have entertainment value. Every century needs a little surrealism.

And you think what? That only government could ever collect my garbage or fix roads I walk? Only government could educate me or take care of me medically? Do you believe that anything is really "free"? Do they have you that brainwashed? But I do see your point and I'll address it after this letter in the form of an intelligent series of questions…

Hi Gary,
 
I agree in principle with your views on taxes, but I wonder about the practicality of running a modern, complex society (granted taxation is a large component of the complexity) without taxes. From what little history I know of income taxes, it seems they were often implemented as a "temporary" means of funding a war. If we could all learn to just get along and stop fighting, would income taxes be unnecessary? Yes, I'm joking...
 
But seriously, while most major necessities (infrastructure) could be funded on a user-pay basis, how would we pay for services that are required to keep said modern, complex society operating securely and effectively? How would firemen be paid, for example? Do they respond to enough fires in a year to earn a living wage on a user-pay basis? If that's so where you live, you need to start looking for the arsonist among your neighbours ― perhaps the under-employed fireman would be a good place to start. And when was the last time you personally needed the services of a member of the armed forces, homeland security, FBI, NSA, CIA, etc.? Never, I would guess, or certainly not often enough to have contributed your fair share to those peoples' wages without taxation forcing you to do so ― and the same goes for the vast majority of citizens. So how would people in those types of services be paid without taxes? Or, do you think we could actually do without the m in today's world? What about political leaders, members of local councils, etc.? Can we do without them, too? Do we really need Presidents and Prime Ministers?
 
Would eliminating all these services not just result in anarchy and chaos? Would you trade that in exchange for being able to keep all your hard-earned money? Would your employer be able to function in such an environment? If not, I guess you wouldn't have any hard-earned money to worry about and taxation would be a moot point with you.
 
If you or your readers can suggest a viable way to do all this without taxes, I'd like to know about it. Because, frankly, much as I hate taxes, the consequences of foregoing them in today's world ― at least for the essentials ― seem rather less attractive than enduring them. We need be wary of the Law of Unintended Consequences, aka the road to Hell being paved with good intentions.
 
The definition of "essentials" is, of course, a whole other discussion.

Ah! Excellent questions. This is the sort of thing that libertarian minarchists and libertarian anarchists argue about all the time. I've spent a lot of time arguing with myself over these very matters.

You may read some Rothbard and some Murray for book-length musings, but allow me to say right now that we ought to start with consideration on the proper size and reach of the state. If I had my druthers, states would be no larger than cities…and cities wouldn't be the hundred-square mile conurbations they are today.

Some things just seem to lend themselves to tax-funded, state-run monopolies…like war…but infrastructure immediately leaps to mind. How do you support competition and for things that require long-standing permanent equipment: water, power, communications, and roads?

The need for national defense is largely a result of having a nation-sized nation-state in the first place (or in times past, an especially ambitious and imperially-minded city state). War is the primary business of big governments; defense is the justification they give for taxing the tar out of you and actual hot wars are usually the reason they debase the currency till its worthless. The rest of the time states like to keep busy redistributing wealth from productive citizen-subjects to malingerers with votes for sale.

States are naturally inimical to personal liberty. Any benefits in the form of state services even at the local level that I grudgingly accept come at the cost of some personal liberty…because in this universe you can't get something for nothing.

Cities themselves are just urban fiefdoms. Or perhaps more accurately, the city is a cooperative corporation, a moneymaking operation in pursuit of profit and growth whose citizens (literally and instructively "city dwellers") may vote in new mayoral leadership at regular intervals. Cities are a bit collectivist by their nature, but it's capitalist entrepreneurialism that makes them wealthy and great if exceedingly economically stratified (such is life in the big city).

City residents relinquish gobs of personal sovereignty and no small amount of privacy in exchange for urban conveniences, which often include all sorts of tax-nourished monopolies. Well and good because the city itself doesn't cover the earth. One is free to choose other modes of living with increasing amounts of liberty and its attendant hardships and risks…or at least one used to be able to do so.

The alternatives to the city and its tyranny have been the smaller town, the village and the farm…and if you have the means, the manor. These options require more effort on the individual's part when it comes to basic needs ― like clean water ― and personal security. The city may forbid guns within its borders but it will provide police and emergency services and make sure the municipal water is plentiful and clean…while the private farmer or rancher would be a fool not to have a private arsenal and some basic first aid skill and would have to dig his own well.

When the state metastasizes into its nation-state form, then there are no alternatives, nowhere to go to get away from the leviathan. It's that centralized control that the framers of the Constitution feared ― except for that bastard Hamilton ― but with which we all live today.

The bureaucrats reach into all our pockets no matter where we are to redistribute the wealth as they see fit, fueling inefficiencies and distortions that the market would never allow…and then blame the inevitable misery born of continent-sized centralized planning on capitalism! Or maybe you hadn't noticed?

Here's just a bit from the end of another email:

When one chooses to live under a particular government s/he also chooses to live with the long run policies and customs of the country and its government. That is your freedom of choice!!! Once that choice has been made, some freedoms have been voluntarily relinquished; one has chosen to adhere to the laws of the country. In this case, taxation is a legal function of the government. If one's objection to government taxation of personal income is central to his/her life and being, then that person should exercise their right to choose and get the hell out of this country!!

And go where?

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This sums up the dilemma, Shooters. The state is everywhere. I condone those pockets of state monopoly commonly called cities, but that's with the expectation that I have but to walk beyond the city walls to start regaining my liberty. There is no city wall anymore; nothing to hold the state in check; no place to go where Leviathan doesn't make its weight felt to one degree or another.

If you are also weary of that weight, traveler, then you can rest awhile at this here Whiskey Bar. We're glad for the company.

 

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Hot Stocks 2010 No.1 Atlas Pipeline Partners
by Addison Wiggin

I've been involved in investing and financial markets for the past 15 years. In that time, I've met every kind of investor... and heard about every kind of investing strategy and stock opportunity you can imagine. Here at Agora Financial, we scour the globe looking for hidden investment opportunities often over looked by Wall Street. Capital &Crisis editor Chris Mayer uncovers these opportunities and delivers them to you. Chris is called by some "the best financial journalist you've never heard of ..."

And on behalf of Chris Mayer... I'll gladly put every minute of my hard work and reputation building on theline. His Capital & Crisis subscribers have benefited greatly from his unique recommendations. His globetrotting letter knows no bounds and goes wherever profits can be found. Over to Chris… Finding the Great Investments He's BeenSearching for His Whole Career I'm going to show you how you can start collecting a 20%-plus yield -- on one overlooked energy stock --right away. Besides these plumpdividends, you'll get a good shot at tripling your money. And there's good reason to believe you could make nine times your money -- if Wall Street wakes up and smells hard assets, and pays exactly what they're worth.

The market isn't rewarding Exxon, Chevron or even Gazprom. And now is not the time to start taking risks on wildcat energy explorers. Right now, I'm looking at a stock that's trading under $6. And today, it's showing signs of a climb -- so I wouldn't wait on this opportunity. Just let me give you the bare bones of its business and a nod from a very smart billionaire investor who knows tough markets.

The company's secret is that it doesn't drill for a drop of oil and it doesn't frack a single foot of shale gas. What it does is keep companies who do at its mercy.
Atlas Pipeline Partners (APL:nyse) owns 1,600 miles of pipeline connected to nearly 6,000 wells and is adding over 800 new wells per year in Appalachia. It also operates a growing interstate pipeline system in the Fayetteville Shale. Plus, it has a great deal with one of the most active drillers in America: Atlas Energy. Every well that Atlas Energy drills has to be connected to Atlas Pipeline's system. These are low-risk assets. Now let's talk dividend. Since 2000, APL's average dividend increase clocked in at 7 cents a year. A plump year offered a 107% increase. While it's true that 2008 was a tough year for natural gas, NGLs (APL's primary product) are up 50% from their December lows. Aside from price recovery, there's another catalyst for dividend growth. Given the prime location of its pipelines in Appalachia, you have every reason to expect an increased dividend payout down the road.

War horse Leon Cooperman, shares my interest in APL. He is one of the great living investors. At a recent Manhattan value investors' conference, Cooperman confessed, "This is the most difficult environment I've lived through. And I've been doing this for 41 years." But when he got to talking about getting 20%-plus on your money with APL, he had this to say: "At my age, it's better than sex, but that's just me."

Why does he think Atlas is on sale? Thank collapsing hedge funds the most. These guys have been forced to sell even their best positions to cover losses in other areas. Cooperman thinks this stock is worth $46 easily. My original estimate was $48. That's nine times what it trades at today. So why not consider a stock trading at so steep a discount to book?

Don't forget the great yield -- that's poised to increase. Even if that dividend stays right where it was last quarter, you could still make back today's investment in under four years -- just through the dividend alone.
Recommendation: Buy Atlas Pipeline Partners (APL: NYSE).

Hot Stocks 2010 No.2 U.S. Cellular 8.75% Senior Notes due 11/1/2032 (NYSE: UZG, $20.25)
by Nilus Mattive

Famed investor Warren Buffett made a telling remark on the kind of returns he hopes to achieve in today's tough markets: "We would be very happy if we earned +10%, pre-tax," he told shareholders at Berkshire Hathaway's (NYSE: BRK-B) annual meeting last May. Co-Chairman Charlie Munger quickly concurred, "You can take what Warren said to the bank... and I suggest you adopt the same attitude."

Well, my recommended security for this market bests Warren Buffett's benchmark. It offers secure yields of better than 16%. And we do mean secure -- as in legal obligation.Although this security trades like a stock every day on the New York Stock Exchange, it's actually a bond, not a stock. That means your quarterly interest payments have top claim on the company's assets, ahead of any common or preferred share dividends if the company runs into trouble. That kind of security is comforting in today's turbulent times, but it's hardly necessary for America's sixth biggest wireless firm. In fact, credit rating agency Standard & Poor's is so confident in this firm's financial position, it just upgraded the company's credit quality to investment grade "with positive out look," meaning the rating could be raised in one to three years.

The upgrade and positive outlook mean that any such bonds the company may issue in the future will most likely offer a lower interest rate than this high-yielding security. That's because today's featured security was issued in 2002, when the company was considered higher risk and needed to offer a higher rate in return.
Consider, too, that this security is now trading at around a -19% discount from its $25 par value. It matures in 24 years and can be called at any time. Either way, sooner or later you will be getting back $25 per share plus any unpaid interest. Meanwhile, you'll be paid amply to wait. If this all sounds too good to be true, read on and decide for yourself...

Snapshot: These exchange-traded notes were issued in 2002 by regional wireless operator U.S. Cellular (NYSE: USM). The company is the sixth-largest wireless carrier in the country by number of customers. Its wireless networks serve 6.2 million customers, for an estimated 3% share of the U.S. wireless market. Headquartered in Chicago, the telecom carrier focuses on smaller regional markets mainly in the Midwest, including Illinois, Indiana, Iowa, and Wisconsin.

Key Statistics:
Security Type: Exchange-Traded Debt
Annual Dividend: $2.1875
Dividend Yield: 10.8%
Frequency: Quarterly
Credit Rating: Baa3/BBB

Wireless services account for about 93% of revenues, while equipment sales contribute the balance. Roaming revenues from other wireless carriers using USM's networks provide a 7% chunk of the company's wireless service revenue. U.S. Cellular is a subsidiary of rural fixed-line phone operator Telephone & Data Systems (NYSE: TDS), which owns 80.8% of the company.

Performance: U.S. Cellular has seen earnings grow an average of +50.2% a year over the past three years through December 31, 2007. U.S. Cellular has a strong balance sheet, which is supported by funding from parent company TDS. Its debt-to-EBITDA (earnings before interest, taxes, depreciation, and amortization) ratio, a measure of leverage, is less than 1.0. Meanwhile, debt is only around 20% of total capitalization. Both those measures are well below its regional wireless peers. Rival Leap Wireless (Nasdaq: LEAP), for example, carries a debt-to-EBITDA ratio of 6.4 times, and debt is 60% of total capitalization.

Hot Stocks 2010 No.3 Strike Gold with SPDR Gold Shares (GLD)
by Ian Wyatt

If the gains gold has made are any indicator of profits to come, I think SPDR Gold Shares (NYSE:GLD) is the golden ticket investors need to expose their portfolio to the safety and profits of the precious yellow metal.

Gold has been one of the best performing investments in a down market, and was one of the only investments to post gains in 2008, proving to be an excellent safe haven. Like U.S. Treasuries, the price of gold has rallied as investors fled equities and bonds, and sought safe investments. SPDR Gold Shares is an ETF that trades at one-tenth the price of an ounce of gold, and tracks the price movement of the commodity. The metal has most notably been on the rise, jumping 31% to $923 an ounce from the recent Nov. 13 low of $700 an ounce. As I mentioned in my weekly letter on Monday, I had been considering buying the Market Vectors Gold Miners Index (NYSE:GDX). However, this higher-risk, higher-reward investment has soared an astounding 74% from a recent Oct. 27 low, making it much riskier than GLD.

Through SPDR Gold Shares, I intend to take a cautious approach to gaining exposure to gold, given the big gains that the ETF has already experienced in the last few months. I plan to start with a small position of $2,000, and may add to the position in the future. I don't intend to have more than 5% of my portfolio invested in this position at any time.

For any Goldfingers out there, investing in SPDR Gold Shares is much like buying gold bars or coins, minus the headache of having to hold them in a safe or hide them under your bed. Using the fund, you have the added flexibility of being able to buy or sell at any time. The fund is backed by physical gold reserves, giving investors the security of buying the real commodity.

Many commodity prices dropped in 2008, including gold, which fell briefly in October and November of 2008. Don't let this brief decline fool you though - this is a long-term bull market for commodities, and gold will continue to perform well. As investors ditch low-yield U.S. Treasuries and seek other inflation-protected investments that can provide safety, gold appears to be the perfect investment.

The reckless monetary policy of the U.S. Federal Reserve will have its day of reckoning in the future, and investors who are long-gold and have investments that aren't tied to the greenback will be smiling in the years to come.

Let's face it: once the economy picks up, deflation will change into inflation. And hyper-inflation isn't far off, as a result of a U.S. government that continues to spend aggressively and issue more curren cy in a thus far failed attempt to jumpstart the U.S. economy. This anti-inflation investment allows investors in the United States to diversify out of the dollar and own an asset backed by a physical commodity that is likely to see greater demand with limited additional supply coming on line in the coming years.I plan to begin with a small position, which I may add to if I see a breakout in the price of gold. I'll also look to add to my position if prices consolidate, which I think is quite possible given the recent jump in price.

Hot Stocks 2010 No.4 How One Tiny Drug Developer Could Take Down The Industry Leaders
by Greg Guenthner

Grab Your Share of a $31 Billion Market In 2007, the global pharmaceutical pain relief market was worth approximately $31 billion. In the U.S., two-thirds of the dollar volume of the prescription pain medication market is for drugs used to treat chronic pain, with the remainder going toward drugs used for acute pain.
Javelin Pharmaceuticals Inc. (JAV: AMEX) designs products to fulfill unmet and underserved medical needs in the pain-management niche. The company is particularly focused on breakthrough cancer, post-operative, back, orthopedic injury and burn pains. Despite the advances in medicine, the company insists treatments for these types of pain continue to be an underserved medical need. That's where Javelin's lucrative new contract comes into play…

The company penned an agreement in January worth up to $71 million that includes double-digit royalties on future sales of its new pain drug, Dyloject. Javelin will receive roughly $12 million in upfront cash payments from European pharmaceutical developer Therabel for the commercialization rights for Dyloject, the flagship product in Javelin's current pipeline. Dyloject is an injectable form of diclofenac, which is a prescription anti-inflammatory drug often prescribed to treat postoperative pain.

Dyloject is undergoing Phase 3 clinical development in the United States - the drug is already available in the United Kingdom. During its pivotal U.K. registration trial, Dyloject's efficacy and safety were shown to be significantly superior to standard intravenous treatments currently marketed in the U.K.

A Faster, Better Treatment
The competition for Dyloject requires dilution and slow infusion into the patient. But Dyloject comes ready to use for immediate IV administration. Anti-inflammatory drugs such as Dyloject, along with opioids like morphine, are often used post-operatively. They help reduce opioid doses by as much as 50%, thereby decreasing morphine-related side effects on the patient.

Dyloject's most significant U.S. competitor in the injectable antiinflammatory category is ketorolac tromethamine. In January 2006, Javelin announced the results of a Phase 2b U.S. study in which Dyloject showed superior onset of action compared with ketorolac five minutes after intravenous injection.

Bottom line: This drug does what it is supposed to do. And it does it better than all of the leading competitors. That's the ringing endorseent for Dyloject…especially since it's awaiting approval in the U.S. U.K. Sales and European Agreement Are Signs of Things to Come Dyloject is already on the market in the United Kingdom, and sales have been growing at an impressive pace. The drug is now on the formularies of 73 hospitals in the U.K., 58 of which were considered gold accounts and 15 silver accounts. In the first nine months of its availability, Dyloject was accepted at 40% of their targeted accounts. The drug has been accepted at 95% of the institutions to which it's been presented. This, Driscoll believes, shows that Dyloject has value to clinicians. It will prove valuable to shareholders, too…

Since Dyloject was introduced to the market, sales of the drug have doubled each quarter. Although that may be a small sample size, it shows the growth potential of the product once it is introduced into a wider market.Javelin is on schedule to complete its studies on Dyloject and submit applications in late 2009 for approval in the U.S. and European markets. The partnership with Therabel helps Javelin accelerate this process.Javelin's a Bargain at Current Prices Javelin has put itself in a fantastic position to succeed. The company currently has $34.6 million in cash and equivalents and no long-term debt whatsoever. Its burn rate during the first three quarters of 2008 was $8.6 million. With $12 million in upfront cash from Therabel, the company is well positioned to wait out approval in the U.S. Javelin feels that the self-medication segment is an area of possible growth. It generally takes 15-20 minutes and sometimes as long as 40 minutes for commercially available oral pain medications to provide any meaningful relief. Javelin says that all three of its product candidates appear to work faster than the oral formulations of currently available prescription pain products. Dyloject has shown to relieve pain in as little as five minutes, a mark that has not been achieved by current injectable anti-inflammatory drugs.

Recommendation: Buy Javelin Pharmaceuticals Inc. (JAV: AMEX).

Hot Stocks 2010 No.5 Abercrombie & Fitch
by Bernie Schaeffer

At Schaeffer's Investment Research, we employ a 3-tiered analysis approach known as Expectational Analysis® (EA) that was created more than 2 decades ago. EA utilizes traditional methods of fundamental and technical analysis and combines these with a third, crucial look at investor sentiment. It is this third layer of analysis that provides a critical edge in selecting stock and option plays. Both anecdotal and quantifiable measures of investor sentiment provide a window into how the investing crowd perceives reality. These perceptions serve as powerful contrarian indicators, as the crowd tends to move as a herd and is, to paraphrase the venerable contrarian Humphrey Neill, "right during the trend but wrong at both ends." A look into the psyche of the collective investing masses, while also taking into account important technical and fundamental variables, can offer a reliable recipe for trading success.

The latest opportunity found by the EA methodology is Abercrombie & Fitch (ANF). According to Hoover's, Abercrombie & Fitch (A&F) sells upscale men's, women's, and kids' casual clothes and accessories. The firm has 1,000-plus stores in North America (mostly in malls) and also sells via its catalog and online. It targets college students, and has come under fire for some of its ad campaigns, as well as for some of its short-run products. The company also runs a fast-growing chain of some 450 teen stores called Hollister Co., and a chain targeted at boys and girls ages 7 to 14 called abercrombie. RUEHL, a Greenwich Village-inspired concept for the post-college set, debuted in 2004.

In early February, earnings rolled in from the trendy retailer, surpassing the consensus estimate. For the fourth quarter, the company posted a profit of $68.4 million, or 78 cents per share, compared to its year-ago profit of $216.8 million, or $2.40 per share. Excluding impairment charges and costs tied to a new employment agreement with its CEO, the retailer boasted a profit of $1.10 per share, beating the Street estimate for a profit of $1.01. Sales fell 19% to $998 million, said the company. ANF stated that it would not issue an earnings forecast for fiscal 2009, citing a tough year ahead. The company said it expects a difficult selling environment to continue.

Abercrombie forecasts capital expenditures of $165 million to $175 million in fiscal 2009, a major portion of which is tied to new stores and remodeling.
Technically speaking, the security gapped sharply higher on the earnings report, gaining more than 10% amid broad market weakness.What's more, this significant bullish gap has placed the equity above resistance at its 80-day moving average. This short-term trendline had capped the shares' recent rally attempts.

As followers of the EA method, we ideally like to see solid price action persist against a backdrop of skepticism, as this implies that there could be additional money waiting on the sidelines that hasn't yet been committed to the bullish cause. It seems as though there is plenty of room on the bullish ANF bandwagon. Options players have leveled some heavy bearish bets against the stock in an attempt to call a top to its uptrend. The Schaeffer's put/call open interest ratio for ANF stands at 1.28, as put open interest outweighs call open interest among near-term options. This reading is also higher than two-thirds of those taken during the past year, indicating extreme skepticism among short-term options speculators.Meanwhile, Wall Street has yet to fully jump on this outperforming security. According to the latest data from Zacks, 14 of the 19 analysts following ANF rate it a "hold" or worse. Any upgrades from these remaining holdouts could help to propel the shares higher during the long term.

Overall, this combination of pessimistic sentiment against the stock's backdrop of improving earnings and strong technicals has bullish implications from a contrarian perspective. As investors unwind their bearish bets and jump on the stock's bandwagon, they will help to push the security even higher.

Hot Stocks 2010 No.6 Redefining Pharmacy Benefit Managment
by Ian Wyatt

The way I see it, even through current market malaise, SXC Health Solutions (Nasdaq:SXCI) is standing firm with its two corporate feet firmly planted in two complementary arenas: it's providing pharmacy benefits management services and developing the technology engine needed to keep costs under control.
Bringing down health-care costs remains a hot-button issue, as the baby boomers reach retirement age, Medicaid and Medicare grow, and drug costs continue to rise.

SXC Health, formerly known as Systems Xcellence, is a niche player in the benefits marketplace. Headquartered outside Chicago, SXC Health is a provider of health-care information technology solutions and services to providers, payers and other participants in the pharmaceutical supply chain in North America.

SXC Health is redefining pharmacy benefit management (PBM) by providing a broad range of pharmacy spend management solutions and information technology capabilities. The company is a leader in delivering an innovative mix of market expertise, information technology, clinical capability, scale of operations, mail order and specialty pharmacy offerings to a wide variety of healthcare payor organizations including health plans, Medicare, managed and fee-for-service state Medicaid plans, long-term care facilities, unions, third-party administrators and self-insured employers. In essence, the company's services allow customers to make good decisions and save money.

SXC Health's informedRx business sells management services mostly to government and universities, while its Healthcare IT Group develops the technology behind the services and provides a revenue stream via software licensing.

SXC's recent acquisition of National Medical Health Card Systems expanded its informedRx services, which is a broad, flexible suite of à la carte PBM services, which provide flexible and cost-effective alternative to traditional PBM offerings. The acquisition is an essential step in SXC Health's strategic evolution toward being a leader in pharmacy spend management, and gives the company's customers the chance to pick and choose what services are right for them. SXC Health is the only company in the PBM space to offer its clients such a broad portfolio of solutions SXC Health's technology touches close to 1 in every 4 of the estimated 3.5 billion prescriptions written in the United States annually - a plus considering that the health-care sector and health-care IT industry will outperform the market for the next few years.

The company also stands to benefit from demographic and political trends, in that the population is aging and pharmaceutical companies will need SXC's products and services. Also, the new administration has vowed to digitize the health-care system. Both of these trends will positively influence SXC Health's earnings.
In the quarter ended Sept. 30, 2008 earnings were $3.5 million, or $0.15 per share, up from $2.7 million, or $0.12 a year ago. Revenue increased to $318.1 million from $22.2 million. SXC increased full-year EPS guidance to $0.54 to $0.58 a share, from its previous estimate of $0.41 to $0.50. Additionally the company narrowed revenue estimates to $840 to $855 million, from $825 million to $875 million. We forecast the company will earn $0.59 EPS in 2008 and grow EPS 50% in 2009 to $0.88. We expect revenues will be $854 million this year and increase 52% to $1.3 billion next year. The company has made brilliant acquisitions in recent years, which have made it one of the primary players in pharmacy spend management services and information technology solutions.

The company was recently trading at 32 times current year EPS and 22 times forward EPS. These are high multiples in the current environment, but SXCI shares are worth every penny. In fact, shares are worth more. We estimate fair value to be $28 based on EPS and revenue growth projections.

Hot Stocks 2010 No.7 Power Lines and Trees: A Dynamic Duo for Income And Growth
By Justice Litle

They may not be sexy, but it's hard to go wrong with trees and power lines. In fact, we'll be using that unlikely duo to execute this "perfect inflation hedge."
Brookfield Infrastructure Partners (BIP:NYSE). BIP is a limited partnership (though its cash flows are not subject to the same tax treatment as MLPs, or Master Limited Partnerships).

Brookfield Infrastructure Partners (BIP) is a spin-off from a much larger mother ship, Brookfield Asset Management (BAM:NYSE).While little BIP is small and scrappy at $316 million, mother BAM boasts a far larger market cap of $9.5 billion.As a publicly traded partnership, 50% of BIP is owned by investors like you and me. Forty percent is owned by BAM, the parent, and the last 10% is owned by Brookfield directors and management.

BIP was spun off from the BAM mother ship with the intent of being a "pure infrastructure play." The far larger BAM has all sorts of assets on its balance sheet; through the creation of a stand-alone entity, BIP offers a way to pick up direct infrastructure exposure.BIP's primary assets are electricity transmission lines and timber, and they are distributed across North and South America. On the electricity side, BIP owns roughly 5,500 miles worth of transmission lines (power lines) in Chile and Canada (Northern Ontario). Additional power lines in Brazil were sold at a considerable profit in the third quarter of 2008.

BIP's transmission lines are part of a regulated monopoly, which means no competitor can muscle in. As of March 2008, these assets had a recorded book value of $330 million -- more than the value of BIP's current market cap. Using the Brazilian asset sale as a benchmark -- in which BIP fetched a 40% gain over book price -- its likely current holdings have a far, far higher value than the old numbers reflect.

A Toll Road for Electrons
Power lines are a great business. Just as you have to drive to work each day (unless you're retired or work from home), the electricity has to move from the power plant to your house (or the office building, the factory and so on).

Here's why you want to own power lines:
They require very little maintenance and upkeep, so most of the cash flow goes right into the owner's pocket.
Because people and businesses are steady in their use of electricity, those cash flows are very stable.
As inflation rises, steady price increases can be pushed through as part of the contract.

Additionally, BIP will have the chance to build out its electricity transmission networks at attractive rates of return over time. The only thing better than a strong, stable, cash-flow-producing business is a business that can expand on the same great terms. As emerging markets resume their upward trends, electricity use will go up too... and this can only be good news for BIP.

An Infinite Resource
The other thing BIP owns is timber -- more than 1.2 million acres in Oregon,Washington state, and coastal British Columbia. The nice thing about timberland is that, when managed properly, it's an infinite resource. Unlike metals or fossil fuels -- which eventually run out and leave a site in decline -- trees can grow back.
As with electricity, BIP's parent company (and 40% owner) offers four decades of experience owning and operating timberlands. This gives BIP an edge in key areas like harvest planning and managing the product mix.

BIP's acreage is concentrated in premium timbers like Douglas fir and hemlock. In addition, the close proximity to the coast gives BIP an edge on the export side of the business.

Timberland tends to rise in value over time because, unlike the currency spit out of a printing press, they just aren't making any more of it. Timber's uses are many and varied for the global economy, and, like power lines, timber has the advantage of being a high-margin, low-upkeep business.

When prices are high, BIP can cut more timber. When prices are low, they can cut less (saving costs) and let the acreage value appreciate. The timber itself is a renewable resource, and BIP has the ability to book capital gains through the occasional sale of choice parcels for land redevelopment.

An Exceptional Value
Investors are coming back to their senses, snapping up assets that got insanely cheap. BIP's parent could well be buying back shares too, figuring it's crazy to leave them out on the market at such a tempting price. Back in March of 2008, management gave an estimate of BIP's book value (the value of the underlying transmission and timber assets) at $24 per share. I think that is not only a reasonable estimate; it is more than likely a conservative estimate. BIP could easily be worth $25 to $30 per share.

As we prepare for a central-bank-induced inflation deluge, stable, cashflow producing infrastructure assets will only increase in value. Power lines and trees will never go out of style... and the stream of income collected from those assets will only keep ticking up year after year. Buy Brookfield Infrastructure Partners (BIP:NYSE) at $18 per share or better.

Hot Stocks 2010 No.8 Big Profits from Downsizing
by Stephen Rawls

All Americans are changing their spending habits as the economic recession hits home. We're adjusting to the idea of driving the car an extra year or more, to buying clothes at Sears instead of Joseph A Banks, that sort of thing. And while our change in spending habits hurts some, it helps others. As investors, we need to focus on those companies well positioned to profit from these changes. Those companies well positioned to profit from the fundamental changes in the American lifestyle.
One of the major changes that we're seeing now is a turn by the American consumer to private label brand foods to feed their family. As a result, one of the big beneficiaries of this move is American Italian Pasta Company (AIPC), the nation's largest manufacturer of dry pasta. Sales are booming. And so is the stock.

What makes American Italian Pasts so interesting is that it's booming because of several trends. The first is the aforementioned transition to private label foods. A second favorable trend is that consumers are moving away from a meat and potatoes diet to something less expensive, like pasta. And, finally, the low-carb "Atkins diet" fad is now history. Even more amazing in the recession of 2009, American Italian Pasta has actually been able to raise their prices while sales increased! Sales of pasta products in the United States rose 5% last year to $6.4 billion. During that time, American Italian was able to raise prices faster than their costs increased.
For the first quarter 2009, American Italian Pasta earned a whopping $1.23 EPS, up from 2008's first quarter EPS of 43 cents. Retail revenue for the quarter rose 56% to $136.1 million, while cost of goods sold rose only 40%. Overall volume for the company was up some 13%.

From a technical standpoint, American Italian Pasta seems to defy the overall market, making new highs as recently as February 25th. The company is a newly listed issue on the NASDAQ, beginning trading there on November 14, 2008. The company is trading above its 50-day moving average and gapped higher on February 12th after releasing its first-quarter earnings. Since then, the stock hasn't looked back.

With no upside resistance to speak of, the critical technical support level comes in the gap between $27.00 and $29.19. Given the strong earnings report on February 11th, I wouldn't expect the stock to violate this gap. Prospects for the company seem very strong and the company appears able to deliver on those prospects.

Pricing power is something almost unheard of in the economic climate of 2009. And that's one of the things that impresses me the most about American Italian Pasta - it has the ability to increase sales, while raising prices.

One other factor that hasn't yet been considered by most analysts, I believe, is that the cost of raw ingredients, which had been going up for most of 2008, are now in retreat.With higher prices already in effect, any fall in cost of goods sold will reflect directly in higher profitability for the company.

In summary, with American Italian Pasta, you have a company that's benefiting from multiple trends working in its favor. Fundamentally, the ability to raise prices and not affect sales is amazing. With more Americans "trading down" their eating habits, this trend to higher sales shows every indication of continuing. And with their raw ingredient prices now falling, the company will not have to raise prices in the near future to stimulate growth. Rather, the profits for the second quarter of 2009 will come from higher prices already in place, accompanied by falling ingredient prices.From where I sit, American Italian Pasta Company looks like a rare winner in 2009.

Hot Stocks 2010 No.9 Looking for Safe Stocks? Try Channeling Ben Graham
by John Reese

When I began conducting extensive research into the strategies used by some of history's greatest investors some 12 years ago, one thing quickly became apparent: Many of these Wall Street stars, including Peter Lynch, Warren Buffett, and Benjamin Graham, built their fortunes and reputations not by relying on some sort of investing "sixth sense", but instead by using approaches that were mostly or completely quantitative. They stuck to the numbers, never letting emotion influence their decisions.

That was great news to me. Because of my background in computer science and artificial intelligence, I was able to develop sophisticated but easy-to-use models based on these gurus' quantitative approaches.

Today, these models power the research and analysis on my web site, Validea.com, allowing everyday investors to take advantage of the strategies that some of history's most successful stock-pickers used. Since I started tracking them nearly six years ago, portfolios built using each of my eight original "Guru Strategies" have all significantly outperformed the market.

For some top picks in today's market, let's turn to my top-performing strategy -- one that, interestingly, is inspired by what is far and away the oldest of these methodologies, the approach of the late, great Benjamin Graham. Known as the "Father of Value Investing" -- and the mentor of Warren Buffett -- Graham detailed his strategy in his 1949 classic The Intelligent Investor. Six decades later, my conservative Graham-based model is up almost 70 percent since its July 2003 inception, while the S&P 500 has fallen more than 22 percent. Last year, while the market tumbled close to 40 percent, my Graham-based model sustained well less than half of that decline.

One stock my Graham model is particularly high on right now:
Ameron International Corporation (AMN), a California-based firm that makes water transmission lines, fiberglass-composite pipe for transporting oil, and infrastructure-related products like ready-mix concrete and lighting poles -- just the kind of company that could benefit from the federal stimulus package's infrastructure funding.

Having lived through both his own family's fall from financial grace (following his father's death when Benjamin was a young man), and, later, through the Great Depression, it's no surprise that Graham focused as much on preserving capital and limiting losses as he did on producing big gains. He liked stable, conservatively financed companies, not speculative gambles, and Ameron fits the bill. One example of why: its strong current ratio of 2.87. Graham used the current ratio (current assets/current liabilities) to get an idea of a company's liquidity (and the credit crisis has shown us all how important liquidity is).

Companies with current ratios of at least 2.0 were the type of financially secure, defensive, low-risk plays he liked, and Ameron makes the grade.Another way Graham targeted conservative firms was by making sure long-term debt was no greater than net current assets. Ameron has just $36 million in long-term debt and almost $300 million in net current assets, a great sign.

The other main part of Graham's approach was making sure a stock had what he termed a "margin of safety" -- that is, its price was low compared to his assessment of the intrinsic value of its underlying business. Stocks with high margins of safety have downside protection -- they're already selling at a discount compared to their real value, so even if problems occur and earning power declines a bit, the stock still might gain ground because it's so undervalued to begin with.
To find undervalued stocks, Graham looked at both the price/earnings ratio (the model I base on his approach requires the greater of the stock's current P/E or its three-year average P/E to be no greater than 15) and the price/book ratio (which, when multiplied by the P/E, should be no greater than 22). Ameron's P/E (using the higher three-year figure) is just 8.2, and its P/B is just 0.99, indicating that the stock is a great value.

In addition to Ameron, here are a couple more of myGraham model's current favorites:
Schnitzer Steel Industries (SCHN): Hammered when commodity prices began to tumble last summer, this Oregon-based firm has made a big rebound since late November, and my Graham model thinks it has a lot more room to grow. It has a current ratio of 3.2, just $106.1 million in long-term debt vs. $338.5 million in net current assets, and bargain-level P/E and P/B ratios of 5.8 and 1.01, respectively.

National Presto Industries (NPK): Talk about an eclectic group of business segments. This Wisconsin-based firm's housewares division makes small appliances and pressure cookers; its defense segment makes ammunition, fuses, and cartridge cases; and its absorbent products division makes adult incontinence products and baby diapers. Its fundamentals are exceptional -- current ratio of 5.23, P/E ratio of 14.5, P/B ratio of 1.49 -- and, the firm has no long-term debt.

Hot Stocks 2010 No.10 Hedged Investing with Hussman Strategic Growth
by Ian Wyatt

When I recently discovered the Hussman Strategic Growth fund, it was love at first sight. Hussman acts like a hedge fund, providing the fund managers much flexibility in the investment instruments and strategies utilized to capitalize on rapidly changing markets like those we are currently experiencing. Manager John Hussman's disciplined strategy has navigated the mutual fund toward calmer waters amid choppy market conditions, a testament to the fund's ability to achieve remarkable performance in down markets.

Although Hussman receives the advice of key personnel on the fund's board of trustees and at Hussman Econometrics, this mutual fund depends heavily on Hussman himself. He also invests all of his personal liquid assets (outside of cash and money market accounts) in his two funds, clearly aligning his personal interests with those of fund shareholders. Hussman Strategic Growth invests primarily in U.S. stocks with the objective of longterm capital appreciation. It currently has 116 long holdings that include the likes of Johnson & Johnson (NYSE:JNJ), Nike, Inc. (NYSE:NKE ), Amazon.com, Inc. (Nasdaq:AMZN), Coca-Cola (NYSE:KO) and Best Buy Co. (NYSE:BBY). Hussman goes long on individual positions, and can leverage using equity call options. Ninety percent of the fund's net assets are tied up in stocks while the remaining 10% is sitting in cash.

Hussman was down only 9% in 2008, a performance that was the envy of most fund managers, especially in light of the 37% drop in the S&P 500. In the previous bear markets of 2001 and 2002, the fund was up a whopping 14% in each of those years. Because the fund is so risk-averse, its short-term track record may limp in bullish environments, but its long term performance is where investors begin to see solid profits. Given the current state of the market, and the fact that my outlook calls for a range bound and volatile stock market in 2009, Hussman Strategic Growth fund is a solid place to have capital invested.

John Hussman develops a risk versus reward profile for the current market climate, identifying economic trends and valuing individual stocks based on their expected streams of cash flow. For much of the past decade, Hussman has considered most stocks overvalued and did not think they were providing enough reward given their high level of risk.To preserve capital, he hedged the portfolio against market risk by shorting indexes such as the S&P 100. As a result, the fund has been fairly uncorrelated to the whims of the market and has been shielded from the heavy losses many funds have faced.

Since its July 2000 inception, the fund's 8.9% annualized return has outpaced the S&P 500, which lost 4.4% annually over the same period.Performance in 2009 appears to be holding up, with year-to-date returns of 0.25% versus a loss of 8% for the S&P 500 index. Morningstar calls Hussman "one of the steadiest and cheapest options in the fledgling long-short category," and gives the fund a 3-star rating.

Hussman's claimed approach of "investing for long-term returns while managing risk" is in perfect alignment with my aggressiveapproach to conservative investing. I, too, aim to find opportunities for long-term capital appreciation, while limiting downside risk through portfolio diversification and aggressive risk management. The fund is currently taking a very conservative approach to equities, which makes sense given the performance last year. With the bleak prospects for global growth in 2009, this fund should perform well in horizontal or down markets, making it a nice fit within the equity portion of my Recovery Portfolio. Additionally, the fund's flexibility should allow it to perform nicely once stocks begin their recovery.