This article was first published in late February, and was lightly updated in April, the last time the ad ran heavily — and now the ad is circulating again in mid-August, so I’ve made some slight updates again. What follows is mostly unchanged from 2/28. The price of the stock is also again close to where it was in February, right around C$3.00.
Dan Ferris is out with a new teaser pick, and I haven’t seen one from him for quite some time… so let’s check it out. The emails introducing this ad are definitely over the top… this is probably what’s really getting the attention of readers:
“If I had to pick one stock to put every penny of my life savings into… this would be it.
“I’d bet my cash… my retirement savings… all of it… all on this single company.
“If that sounds like promotional bluster to you, you clearly don’t know me. And you’ll miss out on this opportunity completely.
“Because the fact is, I’ve been in this business for nearly 20 years… recommending hundreds of stocks… and this is only the second time I’ve ever felt anywhere near this kind of conviction.”
And more recently:
“Today, I’m sharing the #1 stock recommendation of my career.
“A royalty stock.
“Collecting royalties is one of the most lucrative businesses on earth.
“It’s the definition of what Porter Stansberry calls ‘capital efficiency’—where the profits can scale up big time… but the fixed costs are practically zero.”
The question I got from a bunch of readers when this ad first circulated in mid-February was, “is this Altius again?” And that’s understandable, since Altius Minerals (ALS.TO, ATUSF) has been teased off and on by Ferris for years — but this one appears to be something a bit different.
This caught my eye early on in the ad:
“It’s a royalty business that’s much smaller than Royal Gold, Wheaton Precious Metals or any other firm you’ve ever heard of. Yet, based on my research, its potential market is 6 times bigger, because in addition to gold and silver – it collects royalties on dozens of other resources too.
“There are only a handful of companies on Earth that do anything like this, which is one reason why readers who followed my initial recommendation are up over 100%… even during a bear market in precious metals… and have started collecting a nice annual dividend as well.
“But that’s not the opportunity I’m sharing today.
“The fact is, what I’m about to show you is even better…”
OK, so that’s a reference to Altius… and a confirmation that his new recommendation is different and, he thinks, “something better.” Altius Minerals has been one of my larger holdings for a long time now, and remains my biggest single exposure to commodities, and I did first learn about it because of a Dan Ferris teaser pitch way back in 2009… so I’m intrigued enough to research further. What’s this new idea?
Well, he hints at it a bit during the course of the ad for his Extreme Value newsletter (“on sale” for $1,000, no refunds), so we’ll check out the hints he drops and see what the Thinkolator can find. Here’s what really got Gumshoe readers excited:
“World’s No. 1 Stock When Gold Booms
“In short, the No. 1 stock recommendation of my life is a company that makes millions of dollars every single day from gold, silver, and other precious natural resources.
“I call it ‘the Best Gold Business on Earth.’Are you getting our free Daily Update
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“As I’ll explain, it’s like getting in on the world’s best royalty companies at the very beginning of their astronomical runs.”
And then we get some clues…
“… it’s not a conventional royalty collector… ”
” it’s not a miner… explorer… producer… or any other type of business you’ve likely heard of, either.”
And hints at some serious safety…
“This is an opportunity where you could triple your money – or more – if nothing goes right.
“You could put on a blindfold before you buy it and then forget you own it for 10 years – never once checking in on the gold market. I’m nearly certain you’d be a lot richer at the end.
“That’s why this is ‘my’ kind of stock… and not some high-risk speculation for gold diehards.”
I love royalties, the notion of collecting cash in perpetuity without doing any more work really appeals to my inner lazy bum… so what kind of royalty is Ferris teasing here?
“This other kind of royalty is different.
“It’s a payout on gold that’s already been mined.
“Tons and tons of gold. And not just once. Or once per year. But permanently… every month… forever….
“If you’ve ever owned some of the most popular gold (or silver) investments in the world… odds are you’ve paid this type of royalty, without even knowing it….
“That’s because the Best Gold Business on Earth collects a fat, steady royalty-type payment not on a mine… or an exploration project… but on a big chunk of the gold market itself.
“They essentially take a cut based on people’s desire to own gold.”
Well that’s intriguing… and it pretty well narrows things down to just a couple of businesses that could match those clues.
And it is, apparently, not terribly complicated… from the ad:<