“…Manipulation could make you 62% richer by ‘Opening Day'” (Markman)

By Travis Johnson, Stock Gumshoe, February 10, 2010

I don’t end up writing about Jon Markman very often — he does a lot of marketing for his newsletter, but he rarely teases specific companies in his ads, he does a lot of short term (for me, at least) trading and uses ETFs for his core trading ideas, it seems … but he does pick special situations and strategic picks for his Strategic Advantage newsletter as well.

And while he wasn’t the one teasing Cytori Therapeutics a few months back, he did publicly recommend the stock a few times after that and it did spectacularly well for a while (it’s coming back to earth at the moment) … so perhaps he’s got something with his strategic ideas? One never knows, but he included a teaser in his latest ad so I thought I’d give it a quick look for you.

He actually teased seven trades in this spiel about “The Syndicate” and their “conspiracy” to manipulate the markets (and for “Syndicate” you can pretty much read “Goldman Sachs”, though he’s clearly referring to all the big trading houses, too). Here’s how his pitch opens:

“You are not supposed to know what I am about to tell you.

“In fact, I could be stopped – shut down – at any time, so I’ll say this once and once only. Read every word of what follows, I beg you.

“My name is Jon Markman and I am about to offer you an edge, an advantage that Forbes, The Wall Street Journal, Senator Charles Schumer and SEC Chairman Mary Schapiro all agree is ‘unfair.’

“You may choose to ignore the market’s ceaseless game of cat and mouse. You may disdain the market’s elaborate head fakes, stalking horses, feints and parries.

“You will be happier for it, but not a lot richer, I assure you.

“If however, you are tired of being played for a fool, then this report will change your life. It will change everything you do, every day you are in the market. And it could make you 62% richer in the next several weeks.

“And that’s just for starters, as you are about to see.

“If you believe you are qualified to accept this invitation then please continue.

“The Secret Wall Street

“Very few understand this, but the next 1,000-point down day has practically already been scripted and assigned a date.

“And so has the subsequent 750-point up day.

“The price of copper, oil and gold over the next 90 days, too, have been pre-determined by a group of very experienced traders known to me, who operate through the New York Mercantile Exchange and certain Caribbean locations.

“Welcome to The Syndicate

“Play alongside The Syndicate and you are playing with the House. My conservative estimate is that this will increase your money by 62% before the first crack of the bat on Opening Day.

“But if you continue to play against The Syndicate, then your odds drop alarmingly. This is because, right now, The Syndicate has a plan. A story.

“And this story – a massive short squeeze – will leave you poorer. Very quickly.”

“Opening Day” means baseball’s opening day, for the non-seamheads out there … which is April 5 this year. And he lists seven “top trades” that you should be making alongside “The Syndicate”. Six of them are either broad and non solveable or they’re bereft of clues, so I can’t tell you exactly what they are, but the top trade is one I can probably solve for you. Here are the clues:

“Top Trade #1: Oil Floats

“Oil speculators store oil afloat, as you may know.

“The number of oil tankers floating in the Mediterranean and English Channel is up by 71% in the last 2 months. Each ship can hold nearly 1 million barrels, so a jump in price of just $1 means an instant profit of a million dollars per ship.

“Goldman Sachs predicts a bull run in oil prices for the next 4 years – and, specifically, $85 a barrel in the next 90 days. And what Goldman ‘predicts,’ it can surely make happen!

“Between today and April 5, baseball’s “Opening Day” is the perfect time to construct a doubler trade in oil.

“A small company that refuels all those tankers at sea is making a killing in this oil speculation. It is almost a monopoly, too, and is beautifully positioned to double from today’s price.”

This company is far from being a monopoly, but it is pretty much the only publicly traded “pure play” in the bunker tanker business (that’s what the floating gas stations for ships are called, “bunker tankers”), and it is consolidating the business, particularly the increasingly important double hull bunker supply. This is, in all likelihood, Aegean Marine Petroleum Network (ANW).

There was a good and thorough article about them in Investors Business Daily recently, so that’s probably a good place to start — I like the fact that they’re getting ahead of the curve in double hulled bunker tankers, since recent accidents make regulation in that area seem more likely (most single-hulled oil tankers are out of service or in limited service now in “regulation lite” areas of the world since they’re not welcome at the big developed country ports and they carry bigger spill risks, but there isn’t as much regulation of bunker tankers yet).

They’re not cheap and it’s a little tough to make a valuation case unless you incorporate some nice growth numbers into your equation (they trade at a much higher multiple of book than do big tanker companies, and at a premium PE ratio, but they are profitable and, for a shipping company, fairly reasonably leveraged) — but this is an interesting company and if it takes off as an investment thesis there isn’t really another good way for traders to play the idea (yet), so there could certainly be a run in the shares at some point. They also made a public offering of shares at $32.75 just about two weeks ago and seemed to have no trouble selling them, so at this price you’re at least buying shares cheaper than some folks. And they’re pretty small, market cap not much over a billion dollars.

That’s my quick take on Aegean, feel free to let us know if you have any ideas in this business, or any experience with ANW. The other ideas that Markman teased, by the way, were:

  • China’s secret stockpiling of copper — not clear to me if this means we should bet for or against copper.
  • A huge opportunity for “A Gold Double” — there are dozens of ways to play gold if you think it’s going up significantly, he doesn’t give any idea of which ones he likes but if he’s focusing on ETFs one would guess that it’s either GLD or one of the miners, GDX or the junior index GDXJ (that latter one would, presumably, offer more leverage in a rising gold market).
  • Getting 5% on your cash like “The Syndicate” instead of the paltry sub-1% money market rates. He gives no indication of what this means, but it could easily be some play, leveraged or not, on mortgage bonds. That’s just a wild guess.
  • He also teases a $4 bank that could go to $10 — if he gave a clue or two I might be able to tell you, but going just from the share price you’d have to guess Citigroup as a contrarian play for this “juiciest double” … not sure I’ve got the stomach for that one, and it is just a guess.
  • And he teases a “triple in healthcare” without giving any indication of the stock he likes, other than the fact that it’s a “$3 stock that has been made a shuttlecock by The Syndicate” … sorry, that’s not enough of a clue for the Thinkolator, but feel free to guess away on your own.
  • Finally, he says he’s got the “next ‘small cap clean tech'” pick but doesn’t even bother to throw out a single clue, not even a measly little stock price or hint of their focus in “clean tech.” So heck, if you’ve got a “clean tech” idea that you like, feel free to throw it on the pile with a comment below!

So that’s what we’ve got today — a handful of broad investing themes, and one teased stock for your enjoyment. If you’ve ever subscribed to Jon Markman’s Strategic Advantage and want to share your opinion, please click here to review it for us at Stock Gumshoe Reviews — his more expensive swing-trading Trader’s Advantage newsletter is fairly well rated by just a couple reviewers, but we’ve yet to hear from Strategic Advantage subscribers. Thanks!

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17 Comments on "“…Manipulation could make you 62% richer by ‘Opening Day'” (Markman)"

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V Stone
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V Stone
February 10, 2010 12:25 pm

I have an idea that the Bank Stock he refers to might well be Rodman & Renshaw -RODM- rather than Citi as it is already a kind of Mini GS

dlst
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dlst
February 10, 2010 1:58 pm

Re “clean tech” I have liked FTEK’s story, but I last sold it at 27.78 and lost money. After looking like it might rise from the ashes a couple of times since last March, it is currently plunging again, shares approaching $6, and the CFO just quit.

fabien Hug
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fabien Hug
February 10, 2010 2:10 pm

Markman double on gold is short gold through DGZ. The bank was SNV that was closed with a 14% gain two weeks ago. The ship owner was GNK but purchase price was never reached.
Currently long CENX, VXX, NYB and DGZ and TYH.
Good luck. Not a bad letter particularly if you look for a disciplined guide and follow him to the letter; he will cut your loses short. My biggest problem he tends to sometimes reco very small caps and the stocks raise like crazy after market.

007
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007
February 10, 2010 4:04 pm

Fabien,
So Markman is so elusive in his teasers, that the actual shipping company is a dry bulk hauler (GNK) and not a refueler like he said? You are an actual newsletter subscriber to confirm this?

Gail Moore
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Gail Moore
February 10, 2010 7:10 pm

I was wondering if anyone had ever came up with the name of the small Carolina company that made water pipes? It was suppose to have a near monopoly and be a sure fired bi winner. Thanks

Larry
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Larry
February 10, 2010 9:03 pm

What’s the lo-down on this guy ? — IN ONE HOUR OF TRADING YOU CAN MAKE MORE MONEY THAN MOST PEOPLE DO SLAVING AT A
DEAD END JOB ALL WEEK LONG…

I didn’t believe it either until I saw the proof with my own eyes…

Click here for the full report [http://r20.rs6.net/tn.jsp?et=1103024127463&s=47144&e=001rElr9POw2t0NsAhw6RnTKC5DlgpxQOe1SLzN1VbhuuBhStd7QjqltAr-oWAbiehIeN8FskKUjtOt9Qqovj-YhcQAW-ZO9apz3MggEOBpTQJAnIdyH0f8RzJlcY8oZIMdba8kxKzz_j0=]

Simon
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February 11, 2010 3:25 am

Hey Travis,

What’s your take on this.

When he says “Very few understand this, but the next 1,000-point down day has practically already been scripted and assigned a date, and so has the subsequent 750-point up day”, is that just typical marketing crap to sound interesting to his potential subscribers he’s thrown in there… or is their validity in what he is saying?

If so… and Goldman has scripted a day when them… and all their little friends are going to dump billions of shares all at the same time, isn’t that considered collusion and therefore illegal?

any ideas?

John Mathew
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John Mathew
February 11, 2010 1:43 pm

First Hour Trading works–about as well as anything else. I signed up for a free month, and he was up 70% of the time. The biggest value is the real-time experience watching a day trader do his thing. A real education, but not for the faint of heart. He leverages the market’s first hour volatility to a day trader’s advantage, and after about 30 to 40 minutes or so he’s done for the day. Like the best roller coaster rides, it’s short but intense.

Jillybeans
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Jillybeans
February 12, 2010 8:48 am

Not only is day trading not for the faint of heart, it is not for anybody who doesn’t have money to burn. Most daytraders go broke. It’s like throwing the dice on a craps game because most daytraders do not have enough discipline and/or experience to handle the volatility and know how to react to the various situations quickly enough.

Derek Keith Uren
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Derek Keith Uren
February 15, 2010 6:32 pm

Another possible double oil tanker play is DHT Maritime (DHT). Not sure how their balance sheet compares to ANW, but they are one of the few shipping companies to still pay dividends. They are currently trading near their 52 wk lows. Perhaps someone more knowledgeable can decipher their balance sheets and have an input as to if they are reasonably priced.

Rgrajewski
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Rgrajewski
February 16, 2010 9:25 am

rush me info please

Maverick
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Maverick
February 21, 2010 4:09 am

Travis,

Any thoughts on the Robert Morris (the Dynamic Wealth Report) teaser on a “a tiny stock that could jump 10 to 20 times in value”?

AlterIn
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AlterIn
March 31, 2011 10:18 am

Comment 6 has a link that redirects to this article.

shuttc00
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September 27, 2011 4:44 am

Has anyone had any experience with Market Trend Signal? I just signed up for the 30 day free trial and the web site has some interesting tools. Has anyone made money using this system? I am especially interested in the “MuscleStocks & Muscle ETF’s” track record.

DJ
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DJ
February 10, 2010 10:26 pm

HBAN is on the move

Gravity Switch
Admin
11
February 11, 2010 10:13 am
Manuel Backus has been around for years promoting similar day trading strategies — I often get ads for that service placed in the email newsletter through a broker, but as with most of the day trading-type touters I don’t know that kind of trading environment well enough to tell you whether or not there’s anything to this trading strategy (that’s why I almost always write about newsletters with a fundamental and/or stock-picking or fund-picking strategy, not rapid traders or chartists — the day-traders don’t tease individual investing ideas). I know First Hour Trading are not paid promoters of specific stocks,… Read more »
Sojourner DeLaterra
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Sojourner DeLaterra
February 13, 2010 1:29 am

I can’t say much for Manny but I have been participating with the fastmoneytradingteam , a new startup and have been nailing some pretty good returns with Bill Brents. He focuses on just a few stocks and trades for on hour @ market open and there I got interested because of the “no strings attached” 30 free trial. I didn’t even have to give them my real name. I’m sold on the service and it’s MUCH cheaper than the Manny thing.

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