“Jack Morgan’s Single Best Investment for 2007”

By Travis Johnson, Stock Gumshoe, April 27, 2007

So that’s an attention-getting claim, eh?

Wait, it gets better.

This one comes to us from Porter Stansberry at Phase 1 Investor, who would like us to pony up … get ready for it … $5,000 for entry into the exclusive group of investors who are going to find out — in a report released today, Friday April 27th at 3pm, the full details of the “Single Best Investment for 2007.”

So I’d like to know what they think this “best investment” is … but I’m not so much interested in spending five large for that info. Thank goodness for me, I’m the Gumshoe … and thank goodness for you, I’m happy to share the name of this company that I sleuthed out.

And I hope they won’t take offense that the Gumshoe will be beating them to the punch by a few hours.

So what does Stansberry tell us about this firm?

(It’s very exclusive, so I hope you’ve got your top hat and tails at hand.)

This is a natural resources investment bank, listed in London. One of the major owners who holds about 9% of the company, is referred to, pseudonymously, as Jack Morgan … and he gave a presentation to the Stansberry folks in Naples, Florida, with details about this company.

The argument for this firm’s growth is essentially that they have great management, that they have a pipeline of excellent commodity-related deals thanks to the worldwide commodities boom, that they have a new deal to expand in Asia, and that the companies they’re interested in will want to list in London instead of the US or elsewhere, which means more business for this bank.

Here are some of the details shared about the company … or as I like to call them, “clues”:

  • market cap of less than $200 million
  • No debt and lots of cash (and prodigous cash generation)
  • “just announced plans to expand their business in Asia.”
  • “Last year they raised $268 million dollars in 14 offerings. Their income from all those deals was $15 million dollars – an amount 167% greater than what they took home in 2005.”

And of course, the exclusive part: “Because shares of this European-based company are so thinly traded, we’re releasing our report on Jack Morgan’s company this Friday, to just 1% of our readers.”

Some quotes regarding management of this firm:

“The business was started by a former stockbroker and financial journalist for the Financial Times. Over the years he’s managed investment banking companies in Australia, North America and the U.K. He’s also served as a Director of over 20 companies – mostly in the gold and mineral resources sector.”

“He joined forces with an exceptional team of investment bankers from JP Morgan’s Metals & Mining Desk. These guys spent their careers, (some 20 plus years), advising major natural resource companies like BHP Billiton, Rio Tinto, and Glencore on acquisitions and capital markets.”

And just to whet your appetite:

“While their investment banking income has been solidly growing, I expect it to easily rise by 400%-500% over the next few years” — based largely on the expected Asian business.

Part of the argument for investing in this company is that they actually own controlling interests in a large number of early stage commodity companies — these are the ones they mention in the email:

“A low cost gold explorer… Right now, this company controls the 1st large scale gold mine ever developed in Egypt… over 8 million ounces are projected.”

“A platinum mining company… [with] projects in an area of South Africa which produces 80% of the world’s platinum.”

“An iron mining company. This group has an 80% interest in 100 million tons of iron ore in Canada.”

“A gold mining company with key projects in Uruguay.”

So what is the name of this investment bank? What is the single best investment for 2007, according to the Phase 1 Investor folks?

The Gumshoe had to pull the trusty Thinkolator 6500 out of the closet for this one, but I can tell you that this firm is …

Ambrian Capital (AMNZF on the pink sheets, AMBR in London)

There are many points to confirm this, but here are just a couple:

The co-founder and current Executive Chairman of the company is Malcolm Burne, who is indeed a former FT journalist and stockbroker.

The executive team does indeed include the folks from J.P. Morgan that are noted above — including Thomas Gaffney, former director of that “metals and mining” team and the current Ambrian CEO. You can confirm this in their annual reports if you like, accessible here. (Don’t forget to come back!)

And the “recent asian expansion” news is the deal by Sun Hung Kai & Co to buy about 9% of the company and cooperate with them on developing deals in China and elsewhere. The press release is here.

And the special Stock Gumshoe bonus of the day is the list of names of the companies that they noted as key portfolio holdings for this bank:

The platinum mining company is Jubilee Platinum.

The Egyptian gold investment is Centamin Egypt.

The Uruguay company is Uruguay Mineral Exploration, Inc.

The iron mining company is Anglesey Mining.

So there you have it! This is indeed a small company, and though the folks in charge do have good credentials I know not much else about them or their competitive positioning. My sense is that if you believe the current mania for commodity-related companies is going to continue, then Ambrian could very well do great on the back of that. After all, when there’s a rush of investment in a sector the investment bankers generally get fat.

So go forth and researchify for yourselves — at least now you know that the company Stansberry and Associates believes to be the single best investment for 2007-2008 is Ambrian Capital … whether or not they’re right, well, only the passage of time will tell. And whether it’s worth an investment, only you can tell.

And to be fair, you do get more for your subscription to Phase 1’s special deal than just the name of the company — they’ll give you a report, and let you sit in on a conference call with company insiders that they’ll be hosting next week. Maybe that’s worth the money to you.

But for the rest of you, now you’ve got $5,000 you wouldn’t have had if you signed up for this newsletter. Isn’t it high time you shared your good fortune with your friendly Gumshoe? 🙂

Best of luck, and have a great weekend everyone.

[July 6 update: I personally bought some shares in Ambrian over the past week or so, as noted on my portfolio blog oneguysinvestments.com — just wanted to go back and get this disclosure in here for folks who catch this post later on. The post where I explain why I bought now is here, FYI]

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21 Comments on "“Jack Morgan’s Single Best Investment for 2007”"

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Anonymous
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Anonymous
April 27, 2007 8:39 pm

WOW! You are quick! I just sent this to you yesterday. Very impressive…

Anonymous
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Anonymous
April 28, 2007 5:11 pm

Strange that this company trading in London at symbol AMBR (AMBR.L on Yahoo) and
priced at 75.50 Pounds per share, while AMNZF.PK is trading at 1.60 on pinkseets
hmm so he meant that it could
grow 500%? to where? to 375 pounds per share? hmm, sounds unreal.. Or there must be some wrong co-relation between those 2 stocks.. Anybody?

One Guy
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One Guy
April 28, 2007 5:33 pm

London stocks trade in Pence (British pennies), not in Pounds, so the 75.5 is actually 75 and a half pence, roughly $1.50. The pink sheets have a little bit of a premium built in at the moment and have very little volume, but are “roughly” the same price as the London shares.

Cheers,
SG

Anonymous
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Anonymous
April 30, 2007 5:31 am
Stansberry’s Growth Stock Wire had the promo on this company for phase-1, and it looks like they made an error (see below). This stock can trade on AIM as well as on the U.S. pink sheets. Any explanation???————-5)It’s foreign traded – on a European exchange only. Maybe you can see why this investment is not for everyone… and why we can’t offer it to everyone either: We know most of our subscribers won’t go for a foreign stock. Either they don’t have a broker who can trade on foreign exchanges, or it just seems too difficult. But we have plenty… Read more »
One Guy
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One Guy
April 30, 2007 10:57 am

I think many folks wouldn’t consider a pink sheet listing to be tradeable — the volume is so low and the pricing so occasionally unfair that it may not be worth it. The pink sheets aren’t an “exchange” and really represent, for the most part, brokers buying it in London and selling it to you and pocketing the difference. I think it’s probably splitting hairs to say they were wrong that it’s only foreign traded — it certainly is foreign listed.

mary2panama
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mary2panama
April 30, 2007 3:05 pm

Have just discovered your service and love it! Promise that I’ll send you $$ when I make any from the information.
Tried to buy some Ambrian Captial through my online Canadian broker and found it impossible. Trades on LSE are a minimum $150 commission so it’s out of my league.

One Guy
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One Guy
April 30, 2007 3:19 pm
Mary, that is a pretty steep commission — don’t know how Canadian accounts work, but if you can buy US pink sheets with a lower commission it’s also available at AMNZF. Not that it’s necessarily worth buying right now, but it is available (the shares are up 13% today in London, I assume in part because of the newsletter’s push, so the “fair” price on the pink sheets today would be about $1.71 … probably it’ll trade up to $1.80 or so, I expect, given the enthusiasm, so the pink sheets would cost you 4-5% in premium, which is quite… Read more »
elroyskimms
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elroyskimms
May 1, 2007 9:29 pm

I spent a couple of hours trying to locate the true company behind the marketing push and I stumbled on your site during that search. Great job sleuthing it out!

Anonymous
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Anonymous
May 1, 2007 9:56 pm

For some reason I cannot get a quote and volume for AMNZF.PK during the trading hours on both Yahoo!Finance and TD Ameritrade. Any one was successful in trading AMNZF on the pink sheets yesterday or today?

One Guy
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One Guy
May 2, 2007 12:13 am

You can probably trade it, but it will take some trial and error at different prices. Just figure the closing price in pence, translate it to dollars, and add a bit of a premium for the pink sheets. If you don’t get a close in a couple hours, bump up the price a touch. I don’t think anyone supplies free bid/ask on the pink sheets, though your broker may have it iif you actually call them.

Cheers,
SG

Anonymous
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Anonymous
May 2, 2007 11:16 am

Thanks, Great post.
It’s looks like an interesting investment.
I found yr blog when I was goggling for the answers

Also, Yesterday I bought few thousand shares on the AIM market
(at the high price of 0.86/ea)
Although the commissions are very high, I prefer to trade thru AIM and note to touch the PINK sheets

I will donate some $$ after we will see some profits

One Guy
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One Guy
May 2, 2007 2:35 pm
Thanks friend — yep, trading through the London exchange works fine, too, which you choose will depend mostly on your broker and how the commissions compare (and whether or not you want to get in and out quickly, the pink sheets can be very frustrating if you’re in a hurry to sell or buy). The shares are down a bit today — I wonder whether their “secret” conference call at 5 today will do anything to move the stock, they’ve certainly been sending out plenty more emails on this one over the last couple days. I guess it depends on… Read more »
Anonymous
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Anonymous
May 2, 2007 8:28 pm

You Gumshoe guys are amazing–I’ve tried to sluethout these teasers before with very limited success–I am impressed!

Anonymous
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Anonymous
May 3, 2007 3:35 pm

I am in Africa and would like to invest in this company as well .No one broker can help so far in Africa .The american ones are open to citizens of America only .Please advice.

One Guy
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One Guy
May 3, 2007 3:44 pm

Sorry friend, but I have no idea how brokers work in Africa. Hopefully one of my readers can advise — though you might be the first Gumshoe fan in Africa, I’ve got a lot of readers overseas but I’m afraid most of them are in Australia and Europe.

Best of luck,

SG

Anonymous
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Anonymous
May 14, 2007 4:29 am
Ok Anonymous….you paid o.86 pence? times ,210=i.80 US$ plus comm…? I paid one lot 1.73 another 1.78 US$ comm.at QTrade 55.US$ per trade my premium is the exchange from CA$ I bought because it made sense to me but they are down to 1.54$ i am glad i did not pay the 5000 asked at S&A….Porter must be getting very welthy but they have good team so the ask the money….I would like to join an Investment Club and share views and technics with others…i want to find out if there is a way for an average person like me… Read more »
Anonymous
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Anonymous
June 6, 2007 3:41 pm

Does anyone make any cash? Yes, I do. Huge amounts. It’s easy. Go find great companies with great earnings with high insider ownership, ROE/ROIC >15% for five years, no legal troubles, minimal (or very well-constructed) debt, mkt cap under $2 billion and 35% down from their yearly highs. Then buy them.

It’s like shooting fish in a barrel.

Don’t join an investment club. Buy “The Intelligent Investor,” The little blue book” and “the Dhandho investor” and you’re done. It’s that easy.

Anonymous
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Anonymous
June 21, 2007 7:32 pm

This is anonymousf….well i got 10000 shares at 1..75 and 1.78….nothing hapening and 3k in the hole….would somebody “betch slapme’? real hard !!!I want to stop been a sucker…..now do you have to be intelligent to subscribe to Intelligent Investor? i did….thanks for the suggestion “Mate”

One Guy
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One Guy
June 21, 2007 7:45 pm
Yep, that kind of sucks, huh? Sorry to hear it hasn’t been working for you. On the plus side, I seem to recall from looking into it way back when that Ambrian is at least pretty cheap on the face of it — it’s growing at something like 30% and has a forward PE in the single digits and actuall even has a small yield, so (assuming that the analysts haven’t screwed this one up) it might well be fine in the long term. It is pretty tiny, I think the market cap is just under $200 million, so I… Read more »
Anonymous
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Anonymous
November 15, 2007 4:38 pm

STAY AWAY from Stansberry and Associates, Stansberry Research, and any other names they choose to use. After you hear about my situation you will understand.

I joined S & A’s Alliance membership, which is a lifetime access to all their newsletters exept for the $5,000 Phase 1. I decided that their newsletters were not what I was looking and cancelled on Sep 7, 2007, well before the trial date expiration. It has been over 2 MONTHS and I have only received a partial refund and am still owed $3640. STAY AWAY FROM THIS SHAM SERVICE!!!!!!!!!!!!!!!!!!!!!!!!!!!!

newtrader
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newtrader
August 10, 2011 6:24 am
I stay Away from Porter Stansberry, I read somewhere he is not any finance guru, but a businessman who had gather some good associates to join the company Stansberry and Associates, Stansberry Research, Porter stansberry etc. Many years ago Porter had a newsletter that I was a member, he recommended many companies that we should short saying they will go bankrupt. That was a few years before the last Sub-Prime crash, and these company are still trading well today even after they got hit by Sub-prime and last week crash, they did not go bankrupt as Porter so claimed they would. Their company… Read more »
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