written by reader Porter Stansberry Credit opportunities

By raypnc, November 19, 2015

2016: The Largest
LEGAL Transfer of
Wealth in U.S. History
His latest pitch for buying distressed bond debt. Is this a good idea or not?
Thanks
R

This is a discussion topic or guest posting submitted by a Stock Gumshoe reader. The content has not been edited or reviewed by Stock Gumshoe, and any opinions expressed are those of the author alone.

guest

12345

This site uses Akismet to reduce spam. Learn how your comment data is processed.

15 Comments
Inline Feedbacks
View all comments
Travis Johnson, Stock Gumshoe
November 19, 2015 11:20 am

I skimmed that pitch, and he’s mostly saying that he expects a distressed debt crash and then it will be a good idea and there will be lots of opportunities. He had a similar junk bond advisory before, helmed by Mike Williams I think, that did OK with some bonds (like Rite Aid) but also, I think, had a couple bankruptcies — always important to diversify. He hasn’t pitched any specific bonds yet, though presumably their first recommendations might be in energy or materials where the huge washouts of junk bonds have hit so far if they’re waiting for a real crash that brings down stronger bonds.

Add a Topic
1016
Add a Topic
718
Add a Topic
1661
👍 16177
T1 Texas
Irregular
November 19, 2015 4:08 pm

Stansberry’s previous distressed bond newsletter was called True Income. If you want to read the recommendations made in that previous publication, go to the main page on the Stansberry Research website and click on the link near the bottom of the page called “General Archive.” You should then be able to click on the True Income link to read all the past issues. I believe the General Archive is a collection of all the publications that are no longer being published and is open for anyone to read.

Add a Topic
790
Add a Topic
996
Add a Topic
5721
invest_satx
Irregular
November 23, 2015 9:38 pm

I just got Stansberry’s Credit Opportunities November 2015 letter. He’s recommending Natural Resource Partners NRP, with a bond due in 2018, trading at $75 now (meaning $750). He suggests creating a “synthetic convertible bond” by also buying some common stock, now trading at $1.70 a share. NRP doesn’t do the coal mining, it leases coal reserves to mine operators in exchange for royalty payments. Everything Stansberry says sounds good. Could I have a second opinion?

Add a Topic
5971
Add a Topic
1337
Add a Topic
1337
👍 37
John Gault
Guest
John Gault
April 2, 2016 4:16 pm
Reply to  invest_satx

Did that recommendation work out for you?

Invest_satx
Irregular
April 3, 2016 10:44 pm
Reply to  John Gault

Didn’t try it.

Brian
Guest
Brian
August 24, 2016 2:58 pm
Reply to  John Gault

It’s above $83 today…so it appears to be working out so far. 19.267 Yield.

Brian
Guest
Brian
August 24, 2016 3:02 pm
Reply to  John Gault

The stock; however, is below $1 now, taking the 1:10 split into account.

Add a Topic
5971
Ramanan
Guest
Ramanan
December 31, 2016 2:32 pm
Reply to  Brian

We paid for Credit Opportunities in October 2015. We have entered all the bond picks that fell within his recommended price. The NRP recommendation alone has paid for the subscription even though we have not cashed out yet as we are supposed to hold to maturity. We closed out of the Hecla mining pick as per recommendation at a profit. All the rest of the picks are at a profit. Entering the second year and need to see how it works out moving forward.
All recommendations are accompanied by a thorough and detailed analysis.

Add a Topic
1215
dorare
Member
dorare
June 9, 2017 1:09 am
Reply to  Ramanan

Ramanan, are you still a member?

👍 2
Mark Richard Taylor
Guest
Mark Richard Taylor
February 21, 2016 11:23 am

I’m an individual investor with very little weight so I feel kind of helpless but Stansberry and associates are thieves. The original publication that dealt with corporate debt (True Income) was cancelled presumably because the types of investments were just too risky. Personally I made good money by following the suggestions made in that publication. It cost me thousands of dollars to subscribe to True Income and then they cancelled it and replaced it with some garbage rag about Overseas Investing which to my knowledge never suggested an investment that made a dime. The long and short of it, is that after forcing all of the subscribers out of True Income he has resurfaced it as Credit Opportunities and now he wants us to fork out another $5000 for what we should have already had in True Income. In my opinion Stansberry is a thief. Plain and simple

Add a Topic
790
Add a Topic
996
Add a Topic
790
invest_satx
Irregular
February 22, 2016 12:56 am

I wonder how often Stansberry retires a newsletter and replaces it with another, forcing subscribers to pay again or lose out.

Add a Topic
372
👍 37
bzt8fs
Irregular
bzt8fs
December 9, 2017 7:54 pm

Hi Mark Richard Taylor,
I too subscribed to True Income. It was a good diversification from stocks and it did well even with a couple of company bankruptcies, the two analysts who authored it were quite helpful & responsive to questions.
I had a “Lifetime” subscription which lasted for 3-1/2 years. They replaced my lifetime subscription with a 2 year subscription to “Income Intelligence”, which I already had a lifetime subscription to and with a 1 year subscription to “Extreme Value”. So they converted my lifetime subscription into a 1 year subscription to a highly risky stock newsletter that I had no interest in.
I spent many hours arguing with them, asking them to explain how a lifetime subscription was only good for 3-1/2 years and I got nowhere. I again entered into a protracted dialog when they started offering “Credit Opportunities” as it’s essentially what my lifetime subscription was for.
The little bits & pieces I gleaned from my various conversations with Stansberry representatives was that financial arrangements with the analysts authoring True Income were not honored and they were let go. It had nothing to do with the high-yield (aka junk bond) market being too risky. Its risk certainty hasn’t gone down in the past two years so that argument holds no water given that they’ve started a newsletter focusing on it again.
That’s my experience and what I heard and it supports your conclusion. Do not enter into any “Lifetime” arrangements with Stansberry – it simply means the lifetime of the newsletter, not your lifetime.

Add a Topic
790
Add a Topic
996
Add a Topic
996
👍 2
lindajensen3
lindajensen3
August 24, 2016 10:35 am

I am intrigued by Porter Stansberry’s pitch for their “Stansberry Credit Opportunity. I didn’t call, but I’m sure they are asking thousands for the newsletter. Will you guys here at Stock Gumshoe be following that newsletter and reporting on it here? If so, is there a way on this site to earmark just those posts so I see them as soon as they are posted??

Add a Topic
5971
Travis Johnson, Stock Gumshoe
August 24, 2016 10:44 am
Reply to  lindajensen3

I haven’t looked at the ad in detail, but it looks similar to the previous junk bond service he published — I’m pretty skeptical that there are many “big discount” bonds available outside the energy space right now, but the basic argument seems still to be that you can buy bonds cheap because they’re priced for high bankruptcy risk, but his analysis can pick the ones that are less likely to really go bankrupt.

If we cover it in detail, it will go out in our daily email