“The Secret Metal (Better than Gold) that Could Add a Zero to Your Net Worth”

Sniffing out the latest tease from The Crow's Nest

By Travis Johnson, Stock Gumshoe, December 12, 2013

This latest pitch coming through from the Wealth Daily folks, for Jimmy Mengel’s The Crow’s Nest advisory, has caught the attention of plenty of Gumshoe readers — it starts with a long spiel about tapping into the “secret” holdings of billionaires by using a SEC disclosure rule that these rich folks are all fighting tooth and nail, but then settles in to tease us about a few specific investments that they think will boom (and that they found, presumably, in the pages of these SEC disclosures).

The SEC data they talk about in the ad, by the way, are the 13F filings — generally these are due 45 days after the quarter end from all institutional investors and fund managers, which is why we know quite a bit about the holdings of Warren Buffett or Carl Icahn and most of the other celebrity investors and hedge fund managers, similar to the quarterly disclosures by mutual fundsd. They don’t have to disclose positions that aren’t traded in the US, and they can occasionally get permission to keep one of their investments secret for a bit longer (as Buffett does from time to time when he’s in the midst of trying to build a large position at quarter-end and doesn’t want to boost the price up, I think he last did that when he was buying IBM shares for Berkshire but my memory might be faulty), but other than the fact that this data comes with a time lag that is quite substantial for some investors it is genuinely valuable information.

Of course, everyone who wants it can get it for free from the SEC’s Edgar database so it’s not that valuable. It’s definitely interesting to see the changes in portfolios as big investors shuffle their deck chairs and buy or sell, but the most prominent ones are also widely reported on CNBC and in the investing pundit universe in general and there are a large number of websites and newsletters that track 13F filings to try to turn up exciting info. Surprising new additions or sales of existing positions can certainly move stocks on the day that these 13F filings come out, but that’s definitely the exception (and, of course, the portfolio that’s being disclosed is about six weeks old when these are released — so they could be impacting stocks that the original superstar investor doesn’t even own any more).

And many of these folks have truly massive, diversified portfolios of dozens or hundreds of stocks under their management so there’s plenty of room for smaller stocks or smaller transactions or less-well-known investors to fly under the radar to some degree.

Which seems to be the point of this teaser pitch — though of course, it has to be a “secret” or it wouldn’t be any fun! Here’s a bit of the spiel just to give you a taste:

“Why America’s rich elite will do anything to keep this document out of your hands…

“The story behind this little-known document might make you angry, especially if you’re tired of Wall Street’s rigged game.

“The good news is this document could have a huge impact on your wealth this year.

“The government has been publishing it since 1975 at a non-descript Federal office located at 100 F Street in Washington, D.C., just three miles from the White House.

“Even though it has been publishing it for the past 38 years, 99% of Americans don’t know it exists. And it’s not hard to see why…

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“America’s richest investors have done everything they can to keep it off-limits from regular folks like you and me.

“They won’t talk about it. They won’t even acknowledge it. Most of them won’t even tell their own family members this document exists.

“But even with all their attempts to keep this information underground, a small circle of ordinary investors like you and me has managed to access one of THE closest-held investing secrets in history β€” making their own fortunes in the process.”

And what’s up with the “secret metal” bit? Here’s how they put it in the ad:

“Elite Investor #1: “The Secret Metal that Could Add a Zero to Your Net Worth”

“As you know, from 2002 to 2011, gold went up 600%.

“If you missed that big bull market in gold, don’t worry…

“Now you have a second chance to catch a bull market in another metal. Only this bull market has the potential to be much bigger than the gold bull market.

“One of the wealthiest people in the financial world considers this to be one of the most incredible opportunities he has EVER seen.

“This super-investor turned some $15 million into roughly $460 million for his customers from 1998 to 2006. Now he’s massively investing in this metal.”

The Mighty, Mighty Thinkolator can tell you that this “super-investor” is Rick Rule, who used to run his own shop as a small investment banker and advisor in natural resources, with that incredible run into the mid-2000s, and merged his company with Sprott, the big Canadian asset manager, a few years ago.

And what’s that “secret metal” he’s apparently hot on now? Here’s a bit more:

“I’m not talking about gold, silver, platinum, or palladium; this is an opportunity I doubt anyone reading this has ever considered before.

“It’s completely separate from the U.S. economy, which means no matter what happens to America over the next few years, you could still make five times your money on this single investment.

“In the 1970s, when this metal entered a bull market, it went up tenfold.

“And that was not the only time this metal made a lot of people rich.

“There was another bull market more recently, from 2000 to 2007…

“in the last bull market, this same super-investor was heavily investing in the producers of this metal. He says a lot of people who followed him back them ‘added a zero to their net worth as a consequence of that market.'”

So what’s the deal? What’s the secret metal that Rick Rule made millions from in the last bull market, and that he’s hot on again now?

Uranium.

Well-timed, since our longtime reader Myron Martin shared a piece on uranium just a week or so ago — but you probably knew that already, and we’ve seen a consistently rising level of chatter about uranium from many of the newsletter pitchers and free pundits we follow. It’s a nice story because it has lots of global intrigue and also has a strong catalyst that’s likely to shake up the market in the coming year — so it’s a really hard market to figure out, and not just because it’s not really an “open” market like we have with most commodities (there are no uranium futures, you can’t take delivery and store it in your basement unless you want to create an army of radioactive zombies, etc.).

The “shake up” to the nuclear fuel market is the end of the Megatons to Megawatts program that had Russia dismantling their nuclear warheads and selling the fuel to the US to be reprocessed for our power plants — Putin declined to extend that program into next year, so there will be more Russian fuel on the open market but also more demand from US power plants that will likely mean we need more mined supply from somewhere. Folks are still expanding the use of nuclear power for electricity generation and building new reactors, it’s just that they’re not doing much of that here in the US or in Western Europe or Japan, they’re doing it in China and, to a lesser degree, India. And even without new reactors, existing reactors are being kept alive longer and longer and need refueling.

The uranium market is certainly not super-predictable — uranium prices fell in the late 2000s financial crisis along with everything else, partly because the US was selling down some of its stockpile, then there was a boomlet into 2011 that started to wither just before the Fukushima disaster in Japan and then collapsed following that disaster … and despite the fact that absolutely everyone in the uranium business has been pretty focused on the end of “megatons to megawatts” for several years now, the price of uranium on the spot market (which is a small piece of the market, but as close as we get to real prices) has been falling pretty consistently over the past year.

Here’s a little more from the ad:

“This super-investor believes the stage is set for the next bull market… and he thinks it will be as big as the last one. That’s why he’s investing heavily in companies that produce this metal.

“In short, he thinks these stocks will, on average, quintuple in price in the next two to three years.

“Soon this will become one of the biggest topics in the investment world, as more and more people start hearing about it. I wouldn’t be surprised to see this story on the front pages of every major financial newspaper before the end of the year.”

Do we get any more clues about specific stocks they’re suggesting? Well, beyond the fact that they hint about Rick Rule and presumably they like the uranium stocks that he likes, we do get this:

“In this report, I also reveal the name of that company that rallied almost 18,000% in the last bull market. I wouldn’t be surprised to see this stock returning ten times your money in the coming bull market!”

Well, I don’t know for sure which one that was that rallied 18,000% — the huge winner I see mentioned most often from that last uranium bull is Paladin Energy (PDN in Canada or Australia, PALAY on the pink sheets), which went from a penny to ten dollars (it’s now back to 45 cents), but that’s not quite 18,000 percent, and a great many uranium stocks had spectacular runs and equally spectacular collapses in the past 10-15 years.

And though I don’t know that we’re going to end up seeing all the holdings associated with Rick Rule in SEC filings, he is part of Sprott now and Sprott reports its US holdings on 13Fs like other asset managers.

A quick scan of the 13F pulls up a relatively small position in Cameco (CCJ), the first pure play “Major” in uranium that would come to anyone’s mind, a larger position in Denison Mines (DNN), and no other uranium stocks. But I’m not sure whether he might have other assets that aren’t reported through Sprott and if they’re not holding these stocks in the US, they don’t have to report anyway — so they could easily be holding bunches of little Canadian or Australian uranium miners and not be disclosing them.

If you’re interested in specific stocks in the uranium field, you’re probably going to continue to hear about lots of them this winter — which will mean that lots of little stocks with no real hope of becoming producers get promoted as the attention on uranium grows (assuming, of course, that there isn’t another meltdown or financial crisis first). I’ve heard Rick Rule speak positively about Fission Uranium (FCU in Canada, FCUUF on the pink sheets) and Denison Mines (DNN) in the recent past, and they’re both in the highly appealing Athabasca area where most of the highest-grade uranium deposits (like Cameco’s) have been found. He has also suggested Uranium Participation Corp, which is as close as you get to a direct play on uranium prices (more on that in a moment).

I’ve also seen the recent pitches from other folks at Angel Publishing that appear to me to be teasing the tiny upstart Azincourt Uranium (AAZ in Canada, AZURF on the pink sheets), which is also near Patterson Lake up in the Athabasca area. If you’re looking just at uranium itself, then the easiest exposure is Uranium Participation Corp (U in Canada, URPTF on the pink sheets), which is managed by Denison and acts kind of like an exchange traded fund for uranium — it simply holds a portfolio of physical uranium in storage to profit from a rise in the price. And you can check out Myron’s article from a week or two ago for more ideas in the teensy weensy junior part of the market (the part that spooks me).

Do I own any of ’em? No, and I don’t have to file 13Fs either … but I expect uranium will have a good ten years. Doesn’t mean it couldn’t fall in half again, particularly if there’s another crisis, but I think we need nuclear power (preferably from newer, cleaner, safer plants — let’s keep shutting down the old, leaky ones) and eventually someone’s going to have to be willing to pay more for it or we’re going to stop looking for and mining more deposits. I’d personally probably stick with Cameco, Denison, Uranium Participation or the other relatively big companies — mining uranium is a big deal and it’s expensive, current producers are much more appealing to me than explorers.

So what do you think? Moved to follow Rick Rule into uranium? He’s been saying it’s a long-term no-brainer all year, but is also careful to say that even “no brainers” can take a far longer time than you think to play out. Have a favorite pick in the sector? Let us know with a comment below.

P.S. Yes, there were two other ideas teased in this pitch, too — more on those shortly.


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Carbon Bigfoot
Guest
Carbon Bigfoot
December 14, 2013 9:46 pm

The book is “The Mad, Mad, Mad World of Climatism” by Steve Goreham, PE.
Sorry

Joseph E Fasciani
Member
December 15, 2013 5:03 am

How’s that Fukushima thing working for ya these days?

I’m nearly 71, and have two top-ranking physicists as friends, but neither one can adequately answer my question, “What do we do with the waste?” Yeah, thorium is blah blah blah great & all that, BUT: TPTB want U2-powered reactors so they can build MORE nuclear weapons, although the current stockpile is enough to kill the entire planet 5000X times over, which according to Dr Joseph C Pearce, is not exactly the definition of “intelligence” at work.

Look: even a little radiation is NOT a Good Thing, as the negatives are accumulative, and Fukushima is NOT going away, only get worse every day. Few people really understand what’s going on, nor the consequences, which are already in play. How do we spell ‘cover up’?

The MSM are never going to tell you what’s really taking place, but anyone w/half a functioning brain [OK, 50% of each lobe!] has to admit that 1. The Three Laws of Thermodynamics have NOT been repealed, and 2. the jet stream and ocean currents are 24/7/365 bringing the entire planet ALL the radiation from Fukushima to everyone, no exceptions here. And you thought Chernobyl was the worst? Now THAT’s funny. NOT.

The bottom will fall out of the U2 market in less than 18 months, when it becomes utterly impossible for medical science to deny what’s happened, as many –if not most– medical professionals are honest, and will report the truth. After all, they have children and lives as well as Our Glorious Liars do –sorry!– I mean, Our Glorious Leaders do!

Good thing I’m not a pessimist, only a mad-cap realist, eh?

All best, from your illustrious,
self-employed-idiot correspondent,
glowing in the dark of Victoria, BC,
Joseph & PTSDakota Bear[ly]

PS: Write me, if you still have the strength….
jefasciani@shaw.ca

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John Harris
Member
John Harris
December 16, 2013 1:46 pm

MOre people die mining and transporting coal, than all deaths from nuclear accidents combined, and that says nothing of those killed by breathing particulates from burning coal. The mess in Japan will be cleaned up eventually. You get more exposure from cosmic radiation from the sun by far than you get from that wafting around on the jet stream. And will none of the critics here investigate new reactors before spouting off here with ignorant claims? New reactors like Molten salt use high level existing nuclear waste as fuel and leave nothing more radioactive than yellow cake to be buried again . They don’t need more uranium mined. And thorium reactors don’t either. If you do invest in Uranium I might suggest you do so for a short term and watch it closely as by 2020 there may be far less need for it than today.

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Austin69
Member
Austin69
December 15, 2013 8:30 am

I hear the distinct sound of hot gas being evacuated from a puntured balloon – I am not a rude person by narure, but the drama queens who seem to proliferate in the investment advice “industry” are really beginning to…make me angry…they make the snake oil salesmen from the Old West seem like paragons of truth and virtue. Not all of them by any means, but I have personal experience with what I believe to be the questionable veracity of Angel Publishing, so Stock Gumshoe’s analysis does not surprise me at all. Keep uo the good work, Travis. You are a breath of fresh air in an “industry” whose gene pool needs a big dose of chlorine,

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Carbon Bigfoot
Guest
Carbon Bigfoot
December 15, 2013 2:13 pm

Hey Fasciani your CV on Link-in suggest a MIke Holmes wanabee—not impressive. Certainly not anyone that can discuss Nuclear Power given the fact that you never finished college.
I have all the strength to make you look like the fool you are portraying, a loud Mouth Hoser.
But that’s not what the Gumshoe is all about. Your entitled to your opinion, warped as it is—but not to the FACTS.
No one DIED at Fukushima and radiation under 5000 m rems is healthy. You didn’t do your homework assignment HORMESIS. Probably why you didn’t finish college.

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takeprofits
Irregular
December 15, 2013 2:41 pm
Reply to  Carbon Bigfoot

For the environmentalists out there, ran across this interesting website while trying to get as much information on Fuel Cell Energy as possible, so thanks to “slick rick” for pointing us in that direction, even if I have my doubts that fuel cell technology is ready for the big time.

http://www.gm.ca/gm/english/ecologic/chevrolet/overview?adv=85042&mkwid=goo_%7C_%5Baccount_name%5D_%7C_Segment+-+Green+-+EXA+-+GG+-+EN+-+PC_%7C_Hydrogen+Fuel+Cell_%7C_fuel%20cell%20power

πŸ‘ 418
Joseph E Fasciani
Member
December 16, 2013 6:00 am
Reply to  Carbon Bigfoot

The level of rude & crude in yr reply is self-sufficient evidence of yr character such that I will not comment on it, other than to observe it, along with all the syntactical and grammatical errors, which bespeak both your educational attainments and the professional background you boasted about.

As to my education and whatever bona fides you care to attach to the educative processes, such as they are, I am a lifelong autodidact, for, as Mark Twain observed about himself, “I made it a point never to let my education interfere with my learning.”

And finally for now, let us begin in a return to my first point: that “…I have two top-ranking physicists as friends, but neither one can adequately answer my question, β€œWhat do we do with the waste?”

One graduated from Cal Poly, and had a lifelong career in oil and energy industries as well as a parallel one w/the CIA; the other is a senior research physicist who is currently Prof. Emeritus in Quantum Physics @ the U of Victoria, has published more than 200 papers, and received the Order of Canada for his work. Yeah, these are the kind of people I hang with, and they seem to have enjoyed that association over the last twenty-something years.

My point is that as brilliant as both of them are, neither has a definitive answer to the disposal problem in regard of its ultimate safety in transport and final disposal. But as you’ve stated your high competence as an engineer, perhaps you can now give first us, and then the world, the long-awaited definitive answer[s] to that problem.

By the bye, my oldest daughter is a civil engineer, and she’s never been able to determine an answer either, and as a mother of three children under six, Fukushima concerns her gravely, as she lives on Quadra Island, here with all the rest of us, riding it out on the ocean currents and jet stream above.

Go ahead, we’re waiting….

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John Harris
Member
John Harris
December 16, 2013 1:58 pm

Evidently neither has heard of Molten salt reactors that use the existing nuclear waste that they are right we have no way to store permanently. But you don’t need to store it if you make more electricity with it and reduce it to very low level waste that is no more radioactive than the yellow cake we mine right now. So this new low level waste can simply be buried. We use the high level waste for fuel, and there is lots of it to use so the issue of fuel for nuclear power is not an issue. You don’t need to mine uranium. Do some research yourself instead of quoting your experts. Given the question how can we safely store existing waste for centuries, they likely answered correctly – there is no good way. But you perhaps did not ask them is there another way to dispose of it by using it in new style reactors. They (hopefully) would have a vastly different answer.

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Carbon Bigfoot
Guest
Carbon Bigfoot
December 15, 2013 4:03 pm

Comment #20 refers you to http;//www.Bloom Energy.com which Myron Martin did not research or he wouldn’t make a comment like… ” I have my doubts that fuel cell technology is ready for the big time.”
Myron you have no excuse on this one because it was previewed twice on CBS’ 60 Minutes. You get a pass not knowing that I’m a Professional Engineer with 50+ years in the Energy business and using a moniker on this website.
Bloom Energy’s customers include: AT&T, Staples, Google, Fed X, Nokia, Honda Staples and many more. Is that big time enough for you Myron?
It is a shame Bloom is private now, otherwise as Texas Hold’em participants would say : I’M ALL IN !!!
Myron Environmentalists are disrupters trying to sent us back to the Middle Age Technology with “Bird Mashers” killing hundreds of predators and estimated 900K bats. US Fish & Game statistics–not mine. And accounting for less than 2% of all energy. Bloom will surpass that by 2020!

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